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Knowledge has two aspects - theoretical and practical and no theoretical concept is complete without having knowledge of its practical application. A few weeks professional training programme was introduced as a part of curriculum of P.G.D.M. This summer training programme proves beneficial to the future managers as they are confronted with the problems of actual work environment during their training period.

As per the curriculum requirement , I did project on INDIAN OIL CORPORATION LTD. In INDIA, THIRTHAHALLI. Working in such a big concern, no matter for a very small period was really a matter of pride. My area of work in that concern was confined to Human resource department and moreover it was not possible for me to cover all the areas of human resource department in such a short period of time so I concentrated my working on the project assigned to me i.e. INDUSTRIAL RELATION. So the learning during the training in INDIAN OIL CORPORATION LTD., a report of that is being presented in the following pages.



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Intention, dedication, concentration and work are very much essential to complete any task. But still it needs lot of support, guidance, co-operation of people to make it successful. Heart full thanks to all the respective persons who support and guide me. I have no words to express a deep sense of gratitude to the management of INDIAN OIL CORPORATION LIMITED for giving me an opportunity to pursue my internship. I sincerely thank _______________ for giving me more than just a training place and an opportunity for understanding of what is a good professional culture I express my deep sense of indebtness towards _________________ (Senior human resource Manager, Thirthahalli region) for providing me valuable information. I am also thankful to the officers of training and development department.


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I _______________ ,a bonafide student of ________________________________ hereby declare that the Project entitled INDUSTRIAL RELATION is an original work and the same has not been submitted by any other student of my class.


My topic is I.R. the industrial relation, the relationship between the employer and employee on the basis of certain terms and conditions of employment. The objective of my study is very broad. In keeping consideration the Thirthahalli Refinery i.e the part of IOCL. I broadly concentrated on the cordial relationship between the management and worker. As we know that employees are the assets of the organization and without giving proper attention and satisfaction to the employees, no one organization can survive in the long run. As a matter of fact, I can say that the employees and the workers are the really the backbone of IOCL. Without it the organization cant get profit. I n the context of Thirthahalli Refinery, I can say that workers and employees are satisfied at the great extent and there is not any strike from January 2009. Also my guide told me that lockout, layoff and retrenchment having no any relevance in the Thirthahalli Refinery. So, at the end I want to conclude as the objectives of my study are: 1. Cause and success of cordial relationship between the employer and employee. 2. The condition of Trade Unions nery 3. Types of grievances arised in ref 4. Machineries for redressing the grievances 5. Working conditions of plant 6. Payment and other factors.


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The relationship between employer and employee is the most important relationship in the corporate world. The positive relationship between both of them is effective technique for the growth of the organization. It would almost impossible to increase the production without greatest co-operation between employer and employee.

One of the most important and the challenging task of the manager is to satisfy employee to a large extent and to minimize their conflicts. In order to satisfy employees and manager must have to adopt motivational factors, incentives schemes.

My topic is I.R, which is broadly related with the relationship between the employer and employee with the terms and conditions of employment. So, the I.R is very broad topic in present scenario, every company want to enhance its productivity. But the productivity cant be improved unless and until the employees are not satisfied. Without satisfying the employees, the organization cant go in the long run and cant compete with its competitors. In order to enhance productivity and satisfying the employees, they have to maintain a cordial relationship between employees, employer and Government. So that, they can survive in the long run and can compete with its competitors.


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My project is based on INDUSTRIAL RELATION at Indian Oil Corporation Limited, THIRTHAHALLI. INDUSTRIAL RELATION Analysis is a post mortem of the organizations Industrial relation system. It measures the ability of the organization to meet the requirement of both employers and employees efficiently or not. Its helps in understanding the actual condition of workers in THIRTHAHALLI REFINERY. In this project, I analyzed the different aspects of industrial relation at Thirthahalli Refinery. My prime objective is to interpret the policies and procedures adopted in maintaining the industrial relation. In this study, I had used Descriptive Research Design. This research design is about the characteristics of particular things. The engraved data is collected from various websites, manuals, monthly periodicals and different time periods. My analysis of the study undertaken is quite satisfactory which shows that refinery has proper system of maintaining industrial relation. The report includes the concepts of industrial relation, the causes of different grievances in the organization and the methods and procedures of their redressal with the help of different laws of Indian Government.


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CHAPTER 1- INTRODUCTION OF THE COMPANY A) Introduction of the company B) SWOT ANALYSIS C) Introduction of Thirthahalli Refinery




CHAPTER 3- RESEARCH METHODOLOGY A) Research Methodology B) Objective of the study C) Research Design D) Method of Data Collection / Survey period





60-66 66


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The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune "Global 500" listing. The oil concern is administratively controlled by India's Ministry of Petroleum and Natural Gas, a government entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and international trading company served the Indian state with the important task of reducing India's dependence on foreign oil and thus conserving valuable foreign exchange. That changed in April 2002, however, when the Indian government deregulated its petroleum industry and ended Indian Oil's monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries in India, controlling nearly 40 percent of the country's refining capacity.

Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the Chairman.

Indian Oil Company Ltd. established on 30th June 1959 with Mr S. Nijalingappa as the Chairman.

Agreement for supply of Kerosene and Diesel signed with the USSR.

MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for IndianOil
docked at Pir Pau Jetty in Mumbai on 17th August 1960.


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Guwahati Refinery inaugurated by Pt. Jawaharlal Nehru, Honble Prime Minister of India.

Construction of Thirthahalli Refinery commenced.

Foundation laid for Gujarat Refinery

Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.

Indian Refineries Ltd. merged with Indian Oil Company with effect from 1st September, 1964, and Indian Oil Company renamed as Indian Oil Corporation Ltd. Thirthahalli Refinery commissioned. The first petroleum product pipeline from Guwahati to Siliguri commissioned.

1965 Gujarat Refinery inaugurated by HE Dr. S.Radhakrishnan, President of India.

Thirthahalli-Kanpur product pipeline and Koyali- Ahmedabad product pipeline commissioned.

IndianOilPeople maintained the vital supply of Petroleum products to Defence

Services during Indo-Pak war.

1967 Haldia Thirthahalli product pipeline commissioned.Bitumen and marine bunkering

businesses commenced.

1968 Techno-economic studies for Haldia-Calcutta, Bombay-Pune and Bombay-Manmad

Pipelines submitted to Government.


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Marketing of Madras Refineries Ltd. products commences. 1970

Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded in favour of the President of India in 1972.

1971 Dealership/reservation extended to war widows, disabled Defence personnel, freedom

fighters, etc. for the first time after the Indo-Pak war.

1972 R&D Centre established at Faridabad. SERVO, the first indigenous lubricant, launched. 1973 Foundation-stone of Mathura Refinery laid by Mrs. Indira Gandhi, Honble Prime
Minister of India.

Indian Oil Blending Ltd. became the wholly-owned subsidiary. Marketing Division attained a new watershed with market participation of 64.2%.


Haldia Refinery commissioned. Multipurpose Distribution Centres introduced at 132

Retail Outlets pioneering rural convenience.

Nutan wick stove launched by R&D Centre. GOVT FIRST GRADE COLLEGE THIRTHAHALLI

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Phase-wise commissioning of Salaya-Mathura crude oil pipeline begins.

1981 Digboi Refinery and Assam Oil Company's (AOC) marketing operations vested in
IndianOil and it became Assam Oil Division (AOD) of IndianOil.

1982 Mathura Refinery and Mathura-Jalandhar Pipeline commissioned. 1983

Massive augmentation of LPG storage and distribution facilities undertaken. Proposal for the 6 MMTPA Refinery at Karnal submitted.

Taluka Kerosene Depots (TKDs) commissioned for improved availability of kerosene in rural and hilly areas in addition to Multipurpose DistributionCentres. Foreshore Terminal at Kandla Port commissioned.

Integrated Corporate Planning a 10-year Perspective Plan and 5-year Long Range
Plan initiated.


New office complex for Registered Office of the Corporation and HeadOffice of

Marketing Division in Mumbai completed.

1986 A new Foreshore Terminal at Madras commissioned. 1987


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Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills and Kumaon. 1989 Salaya-Mathura crude oil pipeline suitably modified for handling Bombay High
Crude during winter.

Kandla-Bhatinda product pipeline project approv

First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at Silchar.

Digboi Refinery modernisation project initiated.

Bunkering facility at Paradip commissioned.


New era Micro-processor based Distributed Digital Control Systems replacing the

pneumatic instrumentations began in refineries.

India's first Hydrocracker commissioned at Gujarat Refinery.

Vision-2000, the Retail Visual Identity programme launched to upgrade retail outlets. 1995
1,443 km. long Kandla-Bhatinda product pipeline commissioned.

First lndane Home Shoppe launched.


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State-of-the-art LPG Import Terminal at Kandla (capacity of 6,00,000 tonnes per annum) commissioned.

First batch of one-year International MBA (iMBA) programme passes out of

IndianOil Institute of Petroleum Management (IIPM).

Business Development received renewed thrust with new functional group. Indian Oil enters into LNG business through Petronet LNG -a JV company.

Panipat Refinery was commissioned. Haldia, Thirthahalli Crude Oil Pipeline (HBCPL) was completed. The Administrative Pricing Mechanism (APM) was withdrawn from the Refining Sector effective 1" April 1998. Phase-wise dismantling of APM began.

Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99, organised by Indian Oil on behalf of the oil Industry. Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat, Mathura and Haldia Refineries. Manthan -- the IT re-engineering project was launched.

Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore -- the first Corporate in India to do so. Indian Oil entered into Exploration & Production (E&P) with the award of two exploration blocks to Indian Oil and ONGC consortium under NELP-1 Y2K compatibility achieved. JNPT Terminal was commissioned.

Digboi Refinery completed 100 years of continuous operation. Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and Petrochemicals Ltd. (BRPL) were acquired. Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned.


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Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA completed. Eight Exploration blocks awarded to the Indian Oilled consortium under NELP-II.

APM dismantled. Pricing of Petroleum products decontrolled. IBP Co. Ltd. was acquired with management control. Thirthahalli Refinery expansion project completed. New generation auto fuels IOC Premium and Diesel Super introduced.

Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka. Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum Company to begin downstream marketing operations in overseas market. Lanka IOC became an independent oil company in Sri Lanka Gasahol, 5% ethanol blended petrol, was introduced in select states. INDMAX unit at Guwahati Refinery commissioned.

Indian Oil turned a Gas marketer by sale of regasified LNG. Indian Oil Mauritius Ltd.s 18 TMT state-of-the-art Oil Storage Terminal at Mer Rouge commissioned Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka. Gasahol, 5% ethanol blended petrol, was introduced in select states. INDMAX unit at Guwahati Refinery commissioned. Foundation Stone of Panipat Refinery Expansion and PX/PTA projects laid. Maiden LPG supplies to Port Blair.

The year marked Indian Oil's big ticket entry into the high stakes business of E&P. Indian Oil's Mathura Refinerywas the first refinery in India to attain the capability of producing entire quantity of Euro-III compliant diesel by commissioning the Rs 1046 crore DHDT (Diesel hydrotreating unit).


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Indian Oil breached the Rs 150, 000 crore mark in sales turnover by clocking Rs 150, 677 in turnover in fiscal 2004. Indian Oil signed a JV agreement with GAIL to enter the city gas distribution projects in Agra and Lucknow. Indian Oil allowed by Government of India to charter crude oil ships on its own instead of going through Transchart, the chartering wing of the Ministry of Shipping.

Panipat Refinery capacity enhanced from 9 to 12 MMTPA World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant commissioned at Panipat as mother plant for polyester industry Chennai-Trichy-Madurai product pipeline dedicated to the nation.

Marketing subsidiary IBP Co. Ltd. merged with parent company. Concept of SERVOXpress Centres as one-stop shops for autocare services launched. Mundra-Panipat crude oil pipeline with facilities for handling heavy crude oil commissioned. Lanka IOC commissions Lube Blending Plant and laboratory for testing fuels and Concept of LNG at the doorstep launched for customers located away from gas

lubricants at Trincomalee


SERVO lubricants launched in Oman. IndianOil Chairman elected as President of World LP Gas Association.


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B M Bansal Chairman & Director (Planning & Business Development and R&D) Board of Directors

S V Narasimhan Director (Finance)

V C Agrawal Director (Human

G C Daga Director (Marketing)


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Resources) & Director-in-charge (IBP Division)

B N Bankapur Director (Refineries)

K K Jha Director (Pipelines)

P K Sinha Additional Secretary & Financial Advisor Ministry Of Petroleum & Natural Gas

Sudhir Bhargava Additional Secretary Ministry of Petroleum & Natural Gas

Prof.(Mrs.) Indira J. Parikh Former Prof. IIM, Ahmedabad and President, FLAME, Pune

Anees Noorani Managing Director, Zodiac Clothing Company Ltd.

Michael Bastian Former Chairman & Managing Director, Syndicate Bank

Dr.(Mrs.) Indu Shahani Principal, HR College of Commerce & Economics, Mumbai and Sheriff of Mumbai

Prof. Gautam Barua, Director, Indian Institute of Technology,Guwahati

N.K. Poddar


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Senior Advocate, Kolkata

Raju Ranganathan

Company Secretary

Principal Executives D K Samantaray Vipin Kumar Chief Vigilance Officer Advisor (Security) Executive Directors (Corporate Office) V P Sharma V K Sood S C Jain R Narayanan K K Gupta Thomas Antony A M K Sinha N K Khosla Satish Kumar Ms. D Lilly V S Okhde A S Ujwal S Ramasamy Internal Audit Corporate Finance Finance-Business Development Corporate Affairs IndianOil Institute of Petroleum Management Human Resources Development Corporate Planning & Economic Studies Safety, Health & Environment Human Resources Pricing & Taxation Exploration & Production International Trade Information Systems


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S C Meshram R S Solanki A K Marchanda N K Gupta S K Sarangi

Petrochemicals CEO, IndianOil Foundation Gas Optimisation Renewable Energy Executive Directors (Refineries Division Headquarters)

P K Goyal H V Singh N K Bansal N K Khosla Sudhir Bhalla A Panda C S Das U L Dohare A S Basu S K Garg V K Bansal R Shankar

Finance (incharge) Incharge Projects PDRP Shipping Projects - PNCP Human Resources Safety & Environment Maintenance & Inspection Projects Operations Information Systems Finance - PDRP Finance Executive Directors (Refineries Division)

J P Guharay A K Roy G Bhanumurthy R K Ghosh P Sur S N Choudhary A Saran Ashwini Sharma M K Padia M Vijayawergia

Mathura Refinery Haldia Refinery Guwahati Refinery Incharge Panipat Refinery Gujarat Refinery Projects-PNCP, Panipat Bongaigaon Refinery Panipat Refinery Thirthahalli Refienery Projects PDRP Site Executive Directors (Pipelines Division)

T Vasudevan A K Rauniar Anil Tandon S K Sinha

Finance Human Resources Projects PLHQ Western Region Pipelines


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B V Jankiram

Operations Executive Directors (Marketing Division Headquarters)

Gautam Datta Gautam Dutta N K Bansal Amitava Chatterjee R Sareen M Nene Mrinal Roy N Srikumar S K Gupta V K Jeychandran Satwant Singh M Ramana D Sen Deepak Pandya E Unnikrishnan H S Bedi DSL Prasad P D Bhaukhandi S Krishna Prasad

Incharge Finance Human Resources S&EP Lubes Aviation Supplies Engineering Andhra Pradesh State Office Consumer Sales Gujarat State Office LPG Operations West Bengal State Office Maharashtra State Office Coordination/Pricing/Planning Retail Sales Tamil Nadu State Office QC Finance Executive Directors (Assam Oil Division)

Subrato Ghosh

Assam Oil Division, Digboi

Executive Directors (R&D Centre) Dr. R K Malhotra Dr. K P Naithani Incharge R&D Lube Technology Executive Directors (IBP Division) S K Roy V Ramaswamy Cryogenics Finance


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Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of Indian

Oil Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958). At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. The Corporations objectives in this key performance area are enshrined in its Mission statement: "to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience .From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38

million tonnes valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000 times. Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a

sales turnover of Rs. 2,47,479 crore (US $ 61.70 billion) and profits of Rs. 6,963 crore (US $ 1.74 billion) for the year 2007-08. Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500'

listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest petroleum company in the world. Indian Oil has ambitious investment plans of Rs. 43,250 crore in the next five years. By

2011-12, the Indian Oil Group, with 80 MMTPA refining capacity in its fold, would be playing a key role in realising Indias bid to emerge as an export-oriented hub for finished products.


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Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized as Indias dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services. Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at another level. While quality, reliability and service remains the core benefits to the customers.

Autogas Indian Oil Aviation Service Bitumen High Speed Diesel Bulk / Industrial Fuel Indane Gas SERVO Lubricants & Greases Marine Fuels & Lubricants MS / Gasoline Petrochemicals Special Products Superior Kerosene Oil Crude Oil


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The Corporation's refineries surpassed 100% capacity utilisation and clocked the highest ever throughput of 51.4 million tonnes. Breaching the 10,000 km mark in length, the pipelines network registered the highest ever operational throughput of 59.5 million tonnes of crude oil and petroleum products. During the year 2010-2011, IndianOil's sales volume registered a growth of 5.6% and went up to an unprecedented 62.6 million tonnes of petroleum products as compared to 59.30 million tonnes during the previous year. Sales of natural gas also went up to 1.7 million tonnes in 2008-09. In addition, product exports rose to 3.64 million tonnes from 3.38 million tonnes in the previous year. Among new businesses, Natural Gas marketing and Petrochemicals generated revenues of Rs. 2425 crore and Rs. 2760 crore during the year 2010-2011

Core Performance
Financial Performance IndianOils gross turnover (inclusive of excise duty) for the year 2008-09 reached a new high of Rs. 2,85,337 crore up by 15.3% as compared to Rs. 2,47,457 crore in the previous year. The Profit After Tax was Rs. 2,950 crore. For the year 2008-09, IndianOil has received Special Oil Bonds worth Rs. 40,383 crore from the Government of India in addition to Rs. 18,210 crore received from upstream companies towards subsidy-sharing. The Gross Refining Margin for April-March 2009 is USD 3.69 per barrel as compared to USD 9.02 per barrel during the previous year Marketing IndianOil maintained its dominance in the market place and clocked the highest ever level of sales during the year 2010-2011 Domestic sales grew by 5.6% from 59.30 million tonnes in the previous year to 62.6 million tonnes in the year 2010-2011


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Refineries For the year 2010-2011, IndianOil's eight refineries achieved the highest ever throughput of 51.4 million tonnes and 103.4% capacity utilisation, registering 8.4% growth in crude oil processing over the previous year. IndianOil refineries clocked the lowest overall specific energy consumption of 64 MBTU/BBL/NRGF (MBN) during the year as against 67 in 2010-2011 IndianOil imported a record quantity of 47.8 million tonnes of crude oil in 2008-09 as against 46.11 million tonnes in 2010-2011 During the year, IndianOil entered into term contracts with Angola and Brunei for import of low sulphur crude oil and over 95% of the LPG imports were finalised through term contracts. Pipelines During the year, IndianOil's network of underground highways breached the 10,000 kilometre mark and registered the highest ever operational throughput of 59.5 million tones. Compared to the previous year, the crude oil pipelines registered a 6.7% growth at 38.2 million tonnes. The year was marked by the commissioning of a record number of pipeline projects, the foremost being the Paradip-Haldia crude oil pipeline and IndianOil's first PanipatJalandhar LPG pipeline. Other projects commissioned during the year include the Koyali-Ratlam product pipeline, ATF Pipeline from CPCL (Manali) to Chennai AFS . Projects IndianOil is implementing projects of over Rs. 60,000 crore currently. Major ones

among them are: 15 MMTPA refinery at Paradip (Rs. 29,777 crore); capacity augmentation of Panipat Refinery (from 12 to 15 MMTPA, Rs. 1007.83


MS quality improvement projects at Panipat (Rs. 1,131 crore),

New Businesses

IndianOil took big strides in new businesses during the year 2010-2011


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Indian Oil controls 10 of Indias 18 refineries at Digboi, Guwahati, Thirthahalli, Koyali, Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon with a current combined rated capacity of 54.20 million metric tones per annum (MMTPA)* (one million barrels per day). Indian Oil registered a record throughput of 36.63 millions tones during the year 2004-05 with a capacity utility of 88.6%. Indian Oil accounts for 42% of Indias total refining capacity. Overall Energy consumption of Indian Oil refineries was lowest at 109 MBTU/BBL/NRGF against earlier best of 111, achieved in 2003-04. Gross Refining Margin (GRM) rose by almost one dollar per barrel during the year 2004-05. It is expected to be the highest at US$ 6.25/bbl for the year 2004-05 as against $5.30/bbl in 2003-04. All refinery units are accredited with ISO 9002 and ISO 14001 certifications.


The Digboi Refinery in North Eastern India is Indias oldest refinery and was commissioned in 1901. Originally a part of Assam Oil Company, it became part of Indian Oil in 1981, its original refining capacity has been 0.5 MMTPA since 1901.

Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0.65 MMTPA. The Digboi refinery produces distillates, heavy ends and excellent quality wax from indigenous crude oil produced at the Assam Oil fields. Petroleum products are supplied mainly to northeastern India primarily through road and by rail wagons. A new Delayed Coking Unit of 1,70,000 TPA capacity was commissioned in 1999. A new solvent dewaxing unit for

maximizing production of microcrystalline wax was installed and commissioned in 2003. The refinery has also installed Hydrotreater to improve the quality of diesel.


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The Guwahati Refinery in North East India the first Public Sector refinery of the country-was commissioned in 1962 with a capacity of 0.75 MMTPA which was subsequently increased to 1.0 MMTPA through debottlenecking projects.The refinery processing only indigenous crude oil from the Assam oil fields. It supplies petroleum products to North-Eastern India and surplus products onwards to Siliguri in West Bengal in 2003. Hydrotreater unit for improving the quality of diesel has been commissioned in 2002. In 2003, the refinery installed an IndMax Unit a novel technology developed by Indianoils R & D center for upgrading heavy ends into LPG, motor spirit and diesel oil.

C further to its current capacity of 6.0 MMTPA through low cost revamping and debottlenecking. Matching secondary processing facility such as RFCC (Resid Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been added. With the commissioning of the 6.0 MMTPA Haldia-Thirthahalli crude oil pipeline, the refinery now received imported crude for processing. A CRU (Catalytic Reformer Unit) was also added to the refinery in 1997 for production of unleaded motor spirit. Projects are also planned for meeting future fuel quality requirements. Thirthahalli refinery supplies distillate products beside eastern India to northern India through a product pipeline to Kanpur in Uttar Pradesh.

The Gujarat Refinery at Koyali in Gujarat in Western India is IndianOils largest refinery. The refinery was commissioned in 1965. Its facilities include five atmospheric crude distillation units. The major units include CRU, FCCU and the first Hydro cracking unit of the country.Through a product pipeline to Ahmedabad and a recently commissioned product pipeline connecting to BKPL product pipeline


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and also by rail wagons/trucks, the refinery primarily serves the demand for petroleum products in Western and Northern India.When commissioned, the Gujarat refinery had a design capacity of 3.0 MMTPA. It was increased to 4.3 MMTPA by the revamping of three distillation Units. In 1978, its processing capacity was further increased to 7.3 MMTPA by the addition of a crude distillation unit. Subsequently the crude capacity was increased to 9.5 MMTPA by 1990 and then by 12.5 MMTPA in 1999. Since it has been increased to its present capacity of 13.70 MMTPA by low cost debottlenecking.

Haldia Refinery, the fourth in the chain of seven operating refineries of IndianOil, was commissioned in January 1975. It is situated 136 km downstream of Kolkata in the district of East Midnapur, West Bengal, near the confluence of river Hoogly and river Haldi. The refinery had an original crude oil processing capacity of 2.5 MMTPA. Petroleum products from this refinery are supplied to eastern India through two product pipelines as well as through Barges, tank wagons and tank trucks.Products like MS, HSD and Bitumen are exported from this refinery.Refinery was increased to 2.75 MMTPA through de-bottlenecking in 1989-90. capacity was further increased to 3.75 MMTPA in 1997 Refining with the

installation/commissioning of second Crude distillation unit of 1.0 MMTPA capacity.Diesel Hydro Desulphurisation (DHDS) unit was commissioned in 1999, for production of low sulphur content (0.25%wt.) High Speed Diesel. With augmentation of this unit, refinery is producing BS-II and Euro-III equivalent HSD at present.

The Mathura Refinery was commissioned in 1982 with an original capacity of 6.0 MMTPA. The capacity was increased to 7.5 MMTPA by debottlenecking and revamping. With its fluid catalytic cracking units, the refinery mainly produces middle distillates and supplies them to Northern India through a product pipeline to Jalandhar, Punjab via Delhi. A hydro cracker for increasing middle distillates was also completed in 2000. The present capacity of the refinery is 8 MMTPA. In order to meet future fuel requirements, facilities for improvement in quality of MS & HSD are under installation and planned to be completed by 2005.


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IndianOils seventh refinery, commissioned in 1998, is located at Panipat, 125 kms away from Delhi, the capital of India, in the state of Haryana in Northern India. The main units are OHCU (Once-through-hydro cracker), RFCC, CCRU (Continuous Catalytic Reformer unit) besides other secondary treatment units. This 6 MMTPA refinery caters to the high demand centers of Northern India. The product to increase the capacity of Panipat refinery to 15 MMTPA is already under implementation, which also takes into account future fuel quality requirements for 2005. expansion project is expected to be completed in 2005. The

The Marketing Division of IOCL handles the responsibility of delivering petroleum products to the customers. The Marketing Division has set up various marketing terminals where storage tanks are built up to hold the products. The petroleum products are transferred to the marketing terminals by the Pipelines Division, which charges the Marketing Division for the same. Indian Oil caters to over 53.2% of Indias petroleum consumption. Indian Oils Marketing Network is spread throughout the country with over 23,000 sales points (the largest in the country


Indian Oil owns world-class research and development centre headed by Director. It provides services to all other divisions of the Corporation and bin that sense it is a form of SHARED SERVICE UNIT. Established in 1972 for the development of lube as well as refining process technologies, the Indian Oil R & D Centre at Faridabad near New Delhi has completed around 30 years of glorious service to the nation. It is one of its kind in Asia and has grown into a major

technological development center of international repute in the down stream areas of lubricants, pipelines and refining processes. Over the years, it has successfully perfected the state-of-the-art lube formulation technology meeting latest national and international specifications with approvals GOVT FIRST GRADE COLLEGE THIRTHAHALLI

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from major original equipment manufacturers. Indian Oil markets around 450 grades of lubricants under the brand name SERVO based on its R&D technology. It has extensive laboratory and pilot plant facilities to successfully pursue projects in lube, refining and pipeline areas making it a unique technology centre. Its rich reservoir of highly qualified / specialized scientific and technical manpower has elevated this center to global status. Creativity and innovative research has led to technological innovations, some of which have received prestigious national and international awards.


The assets of the erstwhile Assam Oil Company were taken over by IOCL in the year 1981. It is kept as a separate division in IOCL. Assam Oil Division owns the Digboi refinery and is also into marketing. It owns one petrol pump on the DelhiMathura Road.


To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction. To maximize creation of wealth, value and satisfaction for the stakeholders. To attain leadership in developing, adopting and assimilating state-of-the-art technology for competitive advantage. To provide technology and services through sustained Research and Development. To foster a culture of participation and innovation for employee growth and contribution.


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To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.


A major, diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security and public distribution.

Care Stands for Concern Empathy Understanding Cooperation Empowerment Passion - Stands for Commitment Dedication Pride Inspiration Ownership Zeal & Zest Innovation Stands for Creativity Ability to learn Flexibility Change

Trust - Stands for Delivered Promises Reliability Dependability Integrity Truthfulness Transparency


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Towards customers and dealers To provide prompt, courteous and efficient service and quality products at fair and reasonable prices.

Towards suppliers To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries.

Towards employees Develop their capability and advancement through appropriate training and career planning.

Expeditious redressal of grievances Fair dealings with recognized representatives of employees in pursuance of healthy trade union practice and sound personnel policies.

Towards community To develop techno-economically viable and environment-friendly products for the benefit of the people. To encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.

Towards Defence Services To maintain adequate supplies to Defence Services during Norman and emergency situations as per their requirement at different locations


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To serve the national interests in the Oil and related sectors in accordance and consistent with Government policies. To ensure and maintain continuous and smooth supplies of petroleum products by way of crude refining, transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum products efficiently. To earn a reasonable rate of interest on investment. To work towards the achievement of self-sufficiency in the filed of Oil refining by setting up adequate capacity and to build up expertise in laying of crude and petroleum product pipelines. To create a strong research and development base in the field of Oil refining and stimulate the development of new product formulations with a view to minimize/eliminate their imports and to have next generation products. To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. To minimize fuel consumption in refineries and stock losses in marketing operations to effect energy conservation. To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/Government approval. To avail of all viable opportunities, both national and global, arising out of the liberalization policies being pursued by the Government of India.

To achieve higher growth through integration, mergers, acquisitions and diversification by harnessing new business opportunities


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To ensure adequate return on the capital employed and maintain a reasonable annual Dividend on its equity capital. To ensure maximum economy in expenditure. To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment, without budgetary support. To develop long-term corporate plans to provide for adequate growth of the activities of the corporation. To endeavor to reduce the cost of production of petroleum products by means of systematic cost control measures. To endeavor to complete all planned projects within the stipulated time and cost estimates.

Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petronet India Ltd. (16%); Petronet VK Ltd. (26%); Petronet CTM Ltd. (26%); Petronet CIPL Ltd. (12.5%); IndianOil Petronas Ltd. (50%); Indian Oil Panipat Power Consortium Ltd. (26%); Indian Oil TCG Petrochem Ltd. (50%); Librizol India Pvt. Ltd. (50%).

Bharat Petroleum Corporation Ltd. Hindustan Petroleum Corporation Ltd. Royal Dutch/Shell Group of Companies.


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IOCL has managed to significantly cut its borrowing cost due to high share of foreign exchange debt. Its share of foreign exchange borrowings is increasing with foreign exchange loans crossing 50% of its total debt compared to 42% at the end of the last financial year.


As India's flagship national oil company, Indian Oil accounts for 56% petroleum products market share, 42% national refining capacity and 67% downstream pipeline throughput capacity.


Indian Oil is one of the leaders in providing engineering, construction and consultancy services to the pipeline industry. Highly qualified professionals with vast experience execute pipeline projects from concept to commissioning and provide services for construction supervision and project management.


Indian Oil is strengthening its existing overseas marketing ventures and simultaneously scouting new opportunities for marketing and export of petroleum products in foreign markets. Two wholly owned subsidiaries are already operational in Sri Lanka and Mauritius, and regional offices at Dubai and Kuala Lumpur are coordinating expansion of business activities in Middle East and South East Asia regions. The Corporation has launched eleven joint ventures (listed separately) in partnership with some of the most respected corporate from India and abroad .


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The decisions relating to administration are taken at the corporate level. Even minor proposals are to be referred to the top management. This leads to a delay in decision-making.


Among the public sector oil companies, Indian Oil Corporation is the only one to follow a weak marketing strategy. It in only in the recent years that the company has started to market its products. However, still the efforts seem to be weak when compared with the competitors like BPCL and HPCL.

Most of the public sector companies seem to suffer from these lacunae. The employees are promoted mainly on the basis of experience and not on the efforts and initiatives displayed by the employee in his work. This results in demotivation and lack of interest for their work on the part of the hardworking employees, who then tend to shift jobs to satisfy their need for self-esteem.

The policy of selection of the lowest bidder tends to affect the quality of the products/services on some occasions. A more simplistic procedure is also likely to generate some savings for the company, since tendering process leads to expenses on account of advertisement.


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Exploration and Production
Indian Oil is metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated, transnational energy behemoth. The Corporation is making investments in E&P and import/marketing ventures for oil and gas in India and abroad, and is implementing a master plan to emerge as a major player in petrochemicals by integrating its core refining business with petrochemical activities.

Entry of Big Private players
The opening up of the oil sector for private players poses a threat even for this wellestablished company. With Indian players like Reliance and Essar and foreign players like Shell planning their entry into the Indian scenario, the road seems to be tough for Indian Oil.


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The Thirthahalli Refinery in Eastern India was commissioned in 1964 with a capacity of 2.0 MMTPA. The refining capacity was increased to 3.0 MMTPA by 1969 and Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been added. With the commissioning of the 6.0 MMTPA Haldia-Thirthahalli crude oil pipeline, the refinery now received imported crude for processing. A CRU (Catalytic Reformer Unit) was also added to the refinery in 1997 for production of unleaded motor spirit. Projects are also planned for meeting future fuel quality requirements. Thirthahalli refinery supplies distillate products beside eastern India to northern India through a product pipeline to Kanpur in Uttar Pradesh.


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With the expansion of Thirthahalli Refinery to 12.0 MMTPA total high speed diesel produced from entire refinery will meet BS-II and BS-III Grade required for NCR. After stabilisation of units, the high value product yield from the refinery will be further improved by reducing the production of black oil like HPS and Bitumen. With state-of the-art matching secondary processing facilities was approved at a cost of Rs.4165 crore.









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''PRISM'' (Panipat Refinery Integrated System of Management) Integrated Policy Quality, Safety, Health & Environment


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Industrial Relations is a dynamic socio-economic process. It a designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of industry. It is not the cause but an effect of social, political and economic forces. Economists have traditionally identified four factors of production, viz.,land labour, capital and organization. The role of labour as a factor of production is becoming increasingly important in the modern society. Capital and natural resource endowments, no doubt, are vital elements in the production process but it is labour which contributes most to the wealth of a company. Human beings are the active agents who accumulate capital, exploit natural resources, build social, economic and political organizations and carry forward national development. Growing industrialization and the rapid expansion of the services sector resulted in the galloping demand for skilled labour after 50s. The emergence of the concept of human relations, human resource management (HRM) and human resource development (HRD) contributed to the growing importance of labour. The issue of INDUSTRIAL RELATIONS arose from the issue of divorce of the workers from the ownership and management of the production process. This has brought about a sense of deprivation and loss of independence on the part of workers and is probably the primary cause of industrial disputes. Industrial work has drastically reduced the independence of workers and made them mere cogs in the machine a kind of second class citizens. The disciplinary rules for work have become quite harsh and arbitrary. The heterogeneous nature of workers, illiteracy and politicization of trade unions made it impossible for the workers to bargain for their rights unitedly. All these factors have led to growing unrest among the rank of workers.


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Employer-Employee interactions: Industrial Relations arise out of employeremployee interactions. These relations cannot exist without the basic building blocks, i.e., the employer and on one side and the employees on the other side. Web of rules: Industrial Relations are a web of rules formed by the interaction of the government, the industry and the labour. They include the relations between employer and employees and between employers` associations, trade union as well as the State. Multidimensional: Industrial Relations are fairly multi-dimensional in nature as they are influenced, by a complex set of institutional, economic and technological factors. Dynamic and changing: Industrial Relations change with the times, generally keeping pace with the expectations of employees, trade union, employers` associations, and other economic and social institution in a society. Spirit of compromise and accommodation: The Industrial Relations system is characterized by forces of conflict and compromise on either side. In the large interests of society, both the employer and the employees must put out fires amicably and get along with each other in a spirits of compromise and accommodation. The individual differences and disagreements must be dissolved through persuasion and even pressure. The factors responsible for conflictful situations need to be resolved through constructive means. Governments role: The government influences and shapes Industrial Relations with the help of laws, rules, agreements, awards of courts and emphasis on usages, customs, traditions, as well as the implementation of its policies and interference through executive and judicial machinery. Wide coverage: The scope of Industrial Relations is wide enough to cover a vast territory comprising of grievances, disciplinary measures, ethics, standing orders, collective bargaining, participatory schemes, dispute settlement mechanisms etc. Interactive and consultative in nature: Industrial Relations include relations and joint consultation between labour, management. individual


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Factories Acts and Industrial Relations

Factories Act of 1946 is a culmination of a series of earlier acts for Industrial Relations. The act makes extensive provisions for healthy relations in various areas in the workplace. S.NO. Year EHS (Environment, Health, & Safety) REGULATION, Acts Year EHS (Environment, Health, & Safety) REGULATION, Acts 1974/1998 The Water (prevention & control of pollution) Act, including amendments. The Water (prevention & control of pollution) Act, including amendments. The Air (prevention & control of pollution) Act, including amendments. The Air (prevention & control of pollution) Rules Environment (protection) Act 1986 including amendments of 1991, Environment (protection) Act 1986 including amendments of Rules The Hazardous wastes (mgt. and handling) rules, including amendments 2000/2003 Manufacture, storage and import of Hazardous chemical rules, including amendments rules



02. 03.

1977/1992/2003 1981/1987

04. 05.

1982 1986






1989 The Central Motor Vehicle rules (under motor vehicle Act, 1988)

09. 10. 11. 12. 13.

1963/1995/2000 2004 2000 1948/1987 1952

Noise pollution (regulation & control)rules,2000 Ozone depleting substances (regulation)rules,2004 The battery (Mgt. and handling) rules, 2004 The factories Act (As amended fill 1987) Punjab state factory rules


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14. 15. 16.

1956/2003 1934/1997 1984/1993/2004

Indian Electricity rules The petroleum Act (as amendment till 1997) Gas cylinder rules, including amendment rules, 1993/2004 The DG rules, 2000 with amendment 2002 The Explosive Act Energy conservation Act, 2001 The Explosive rules, including amendment rules, 1989 The contract labour regulation & control Act, 1970 and rules 1971 The Punjab welfare officer recruitment & condition of services rules

17. 18. 19. 20.

2000/2002 1984 2001 1983/1989







The Bio medical waste (Mgt. and handling) rules The Child labour (prohibition and regulation) Act



This cover section 11-20 and 42-49 & the items covered are related to: Sec 11:- General cleanliness Sec 12:- Disposal of wastes and affluent Sec 13:- Ventilation and temperature Sec 14:- Free from dust and fumes Sec 15:- Artificial humidification Sec 16:- Overcrowding and congestion Sec 17:- Lighting Sec 18:- Drinking water Sec 19:- Kamotes and urinal Sec 20:- Provision for spittoons Sec 42:- Washing facility Sec 43:- Keeping clothing not worn during working hours and for drying of wet clothes Sec 44:- Sitting for workers who are obliged to work standing GOVT FIRST GRADE COLLEGE THIRTHAHALLI

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Sec 45:- Maintenance of first aid box with prescribed contents for every employees Sec 46:- Canteen facility for more than 250 workers Sec 47:- Suitable rest rooms or lunch room with provision for drinking water and should be provided in factory employing more than 150 workers and for more than 500 workers ambulance room of prescribed size, prescribed equipments and in charge of qualified medical and nursing staff Sec 48:- Crches for women, workers more than 30 Sec 49:- Appointments of welfare office for more than 500 employees

Some Social Security Provision for workers. (Statutory) a) Medical treatment and compensation for industrial injury, accident, ailments etc. b) Financial assistance during absence due to ill health or accidents. c) Old age pension d) Gratuity e) Provident Fund f) Financial assistance g) Maternity benefit to women worker up an extremely large public sector. There are points to examination of the Industrial Relations:

Industrial Relation System in Thirthahalli Refinery:

An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation.A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.


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Actors in the IR system: Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis--vis labors. They have the right to hire and fire them. Management can also affect workers interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.

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


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Importance of Industrial Relations

The healthy industrial relations are key to the progress and success. Their significance may be discussed as under Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. Reduction in Industrial Disputes Good industrial relations reduce the industrial disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.


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Mental Revolution The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.


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Objectives of industrial relations

The main objectives of industrial relations system are: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. 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. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. To establish and promote 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. To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. To improve the economic conditions of workers in the existing state of industrial managements and political government. Socialization of industries by making the state itself a major employer. Vesting of a proprietary interest of the workers in the industries in which They are employed.


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Role of State in Indian Industrial Relations

India is socialist democratic republic state. Every elected government of the country has as its bounden duty to secure upliftment of all citizen and to that extent the constitution provides for rules and regulations through a system of laws that would facilitate progress, redress of grievances and thereby would maintain peace and harmony in the society! As regards "labour" while the State is committed to promote industrial growth through bilateral relations between employers and employees for mutually healthy existence, cooperation and progress, the state is NOT oblivious to the fact that despite best intentions and efforts, sometimes the issues between the parties may not get resolved at bilateral level and unless a way ro resolve is sanctified through the constitution of the country and the system of law, there would be impediments to progress and the expected peace and harmony may get vitiated. Against this backdrop, it is simple to accept and apreciate that the State has reserved a a role of an "Umpire or a Referee" in the game of industrial relations in the country. Its provides all kinds of mechanisms to parties through law to resolve their own problems bilaterally and has further taken care to provide a quasi judicial/judicial system for determination of disputes.

Personally and professionally, one feels that this is an ideal system. Unfortunately, the experience shows that corrupt administration, adventurous unionism, sluggish judiciary and tight fisted managements have made a virtual mockery of the concept. But the idea essentially is excellent in the State becoming an Umpire and to help parties become mature in resolving problems amongst themselves! The role of the State in Indian Industrial Relations is that of an Umpire, Elder brother andwellwisher! That the concerned parties have vitiated the golden thought is the country's misfortune!!!


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Employers' organization
An employers' organization, employers' association or employers' federation is an association of employers. A trade union, which organizes employees is the opposite of an employers' organization. The role and position of an employers' organization differs from country to country, dependent on the economic system of a country. In countries with a pluralist or anglo-saxon economic system (such as the United Kingdom and the United States), where there is no institutionalized cooperation between employers' organizations, trade unions and government, an employers' organization is an interest group or advocacy group that through lobbying tries to influence government policy. In these countries, employers' organizations tend to be weak, with many of their functions taken over by industry trade groups, which are basically public relations organization. In countries with a social market economy, such as Austria, Sweden and the Netherlands, the employers' organizations are part of a system of institutionalized deliberation, together with government and the trade unions. In tri-partite bargaining the so-called social partners strike agreements on issues like price levels, wage increases, tax rates and pension entitlements. In these countries collective bargaining is often done on a national level not between one corporation and one union, but national employers' organizations and national trade unions.


Today we are going to study the means and ways to resolve industrial disputes. We should understand that whenever there is some problem in our professional or personal life, we should not get disturbed by the problem .We should look for solutions. Please remember that Go d helps those who help themselves! At this encouraging note let us get into the technicalities of resolving conflicts in organisations.


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INDUSTRIAL RELATIONS MACHINERY Cordial industrial relations and lasting industrial peace require that the causes of industrial disputes should be eliminated. In other words, preventive steps should be taken so that industrial disputes do not occur. But if preventive machinery fails then the Government should activate the industrial Settlement machinery because non-settlement of disputes proves to be harmful not only for the workers, but also the management and the society as a whole. The machinery for handling the industrial disputes has been shown in the following figure: MACHINERY FOR HANDLING INDUSTRIAL DISPUTES IN THIRTHAHALLI REFINERY Preventive Machinery (Voluntary or Non-statutory) Settlement Machinery (Statutory) This is sure that all of us would have heard the saying that prevention is better than cure. Keeping that in mind let us discuss the prevention machinery before the settlement machinery. I hope all of you have understood the difference between the two. If you have not, let me explain it to you. The preventive machinery ensures that there are no disputes. It aims at creating an environment in which the employees are allowed to participate and there are very less chances of conflicts. It is thus proactive in nature. Now dont tell me that you dont understand the meaning of pro activityAnyhow, pro activity means that actions are taken before there is a problem. The settlement machinery on the other hand is reactive in nature. After there is a problem or a dispute, the settlement machinery comes into the picture. Prevention of industrial disputes: The preventive machinery has been set up with a view to creating harmonious relations between labour and management so that disputes do not arise. It comprises the following measures: a) Schemes of workers participation in management such as works committees, joint management councils and shop councils and joint councils. b) Collective bargaining. c) Tripartite bodies d) Code of discipline.


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The schemes of workers participation and collective bargaining will be discussed in greater detail as a separate topic. As of now, please read something on these schemes and we will discuss it in the due course. Rests of the preventive measures are discussed below: Tripartite Bodies I ndustrial relations in India have been shaped largely by principles and policies

evolved through tripartite consultative machinery at industry and national levels. The aim of the consultative machinery is to bring the parties together for mutual settlement of differences in a spirit of cooperation an goodwill Thus these bodies play the role of consultants!! Indian Labour Conference (ILC) and Standing Labour Committee (SLC) have been constituted to suggest ways and means to prevent disputes. The representatives of the workers and employers are nominated to these bodies by the Central Government in consultation with the All-India organisations of workers and employers. The Labour Ministry settles the agenda for ILC/SLC meetings after taking into consideration the suggestions sent to it by member organisations. These two bodies work with minimum procedural rules to facilitate free and fuller discussions among the members. Please note that the ILC meets once a year, whereas the SLC meets as and when necessary. I am sure you would have read in the newspapers that the ILC meet is being organized. The functions of ILC are: (a) To promote uniformity in labour legislation (b) To lay down a procedure for the settlement of industrial disputes (c) To discuss matters of All-India importance as between employers and employees. The ILC advises the Government on any matter referred to it for advice, taking into account suggestions made by the States and representatives of the organisations of workers and employers. The Standing Labour Committees main function is to consider and determine such questions as may be referred to it by the Plenary Conference or the Central Government and to render advice, taking into account the suggestions made by various governments, workers and employers.


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Code of Discipline The Code of Discipline is a set of self-imposed mutually agreed voluntary principles of discipline and relations between the management and workers in the industry.In view of growing industrial conflict, the Fifteenth Indian Labour Conference agreed that there should be a set of general principles of discipline, which should be adopted by labour and management voluntarily. To evolve such a set of principles, a tripartite sub-committee was set up. The resulting draft was discussed at Standing Labour Committee meeting in October 1957. At the Sixteenth Indian Labour

Conference held in 1958, the final form of the Code of Discipline was approved. The details of the code are discussed later.As of now please understand that there are three sets of principles in the Code Of Discipline. The first set of principles is for the management and the union. The second set is for the Management and the third one is for the union

Central Industrial Relations Machinery (CIRM)

The Chief Labour Commissioners (Central) [CLC(C)] Organisation, also known as Central Industrial Relations Machinery, is an attached office of the Ministry. The CIRM is headed by the Chief Labour Commissioner (Central). It has been entrusted with the task of maintaining Industrial Relations, enforcement of Labour Laws and verification of Trade Union Membership in central sphere. CIRM has complement of 25 officers at the Head Quarters and 253 Officers in the field. The offices of these Officers are spread over different parts of the country with zonal, regional and unit level formations. Functions of the organisation: The functions of CIRM broadly are given as under: Prevention and settlement of Industrial Disputes, in central sphere; Enforcement of Labour Laws and Rules made thereunder in central sphere; Implementation of awards. Quasi-Judicial functions. Verification of the membership of the Trade Unions. Welfare.


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Dunlop's Model One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of three agents management organizations, workers and formal/informal ways they are organized and government agencies. These actors and their organizations are located within an environment defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace. Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. He proposed that three parties - employers, labor unions, and government-- are the key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts. Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology.

Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship: 1. Environmental or external economic, technological, political, legal and social forces that impact employment relationships. 2. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government. 3. Rules that are derived from these interactions that govern the employment relationship. Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results. In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction


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key actors


employers and associated

organizations and government The Dunlops model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system.

Industrial Relation Policy

Prior to 1991, the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations. These labor laws were protective in nature and covered a wide range of aspects of workplace industrial relations like laws on health and safety of labors, layoffs and retrenchment policies, industrial disputes and the like. The basic purpose of these laws was to protect labors. However, these protectionist policies created an atmosphere that led to increased inefficiency in firms, over employment and inability to introduce efficacy. With the coming of globalization, the 40 year old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a serious threat to manufacturers because they had to compete in the international market.

With the advent of liberalization in1992, the industrial relations policy began to change. Now, the policy was tilted towards employers. Employers opted for workforce reduction, introduced policies of voluntary retirement schemes and flexibility in workplace also increased. Thus, globalization brought major changes in industrial relations policy in India. The changes can be summarized as follows:

Collective bargaining in India has mostly been decentralized, but now in sectors where it was not so, are also facing pressures to follow decentralization.

Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e.g. pharmaceuticals. On the other hand, in other industries where the demand for employment is increasing are experiencing employment growths.


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

The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions.

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

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

HR policies and forms of work are emerging that include, especially in multinational companies, multi-skills, variable compensation, job rotation etc. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed.

HRM is seen as a key component of business strategy. Training and skill development is also receiving attention in a number of industries, especially banking and information technology.

Perspective of IR

Unitary Perspective: In unitarism, the organization is perceived as an integrated and harmonious system, viewed as one happy family. A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in-hand, towards the shared mutual goals. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees. Trade unions are deemed as unnecessary and conflict is perceived as disruptive.

From employee point of view, unitary approach means that:


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Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required.

If a union is recognized, its role is that of a further means of communication between groups of staff and the company.

The emphasis is on good relationships and sound terms and conditions of employment.

Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc.

Employees should feel that the skills and expertise of managers supports their endeavors.

From employer point of view, unitary approach means that:

Staffing policies should try to unify effort, inspire and motivate employees. The organization's wider objectives should be properly communicated and discussed with staff.

Reward systems should be so designed as to foster to secure loyalty and commitment.

Line managers should take ownership of their team/staffing responsibilities. Staff-management conflicts - from the perspective of the unitary framework are seen as arising from lack of information, inadequate presentation of management's policies.

The personal objectives of every individual employed in the business should be discussed with them and integrated with the organizations needs


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Pluralistic-Perspective :

In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - management and trade unions. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and coordination. Trade unions are deemed as legitimate representatives of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony. They should anticipate and resolve this by securing agreed procedures for settling disputes. The implications of this approach include:

The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation.

Independent external arbitrators should be used to assist in the resolution of disputes.

Union recognition should be encouraged and union representatives given scope to carry out their representative duties

Comprehensive collective agreements should be negotiated with unions

Marxist Perspective: This view of industrial relations is a by product of a theory of capitalist society and social change. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. Capitalism would foster monopolies. Wages (costs to the capitalist) would be minimized to a subsistence level.


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Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident.

This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.


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Industrial disputes are organised protests against existing terms of employment or conditions of work. According to the Industrial Dispute Act, 1947, an Industrial dispute means Any dispute or difference between employer and employer or between employer and workmen or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person In practice, Industrial dispute mainly refers to the strife between employers and their employees. An Industrial dispute is not a personal dispute of any one person. It generally affects a large number of workers community having common interests.

Prevention of Industrial Disputes in Thirthahalli Refinery

The consequences of an Industrial dispute will be harmful to the owners of industries, workers, economy and the nation as a whole, which results in loss of productivity, profits, market share and even closure of the plant. Hence, Industrial disputes need to be averted by all means. Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes various actions through which the occurrence of Industrial disputes is prevented. Like the old saying goes, prevention is better then cure.

Methods for prevention of Industrial Disputes

Model Standing Orders

Code of Discipline

Works Committee

Labour Welfare Officers

Collective Bargaining

Joint Management Councils

Suggestion Schemes

Tripartite Bodies

Joint Councils

1. Model Standing Orders: Standing orders define and regulate terms and conditions of employment and bring about uniformity in them. They also specify the duties and responsibilities of both employers and employees thereby regulating standards of their behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations between employees and employers. Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to frame standing orders in consultation with the workers. These orders must be certified and displayed properly by the employer for the information of the workers.


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2. Code of Industrial discipline: The code of Industrial discipline defines duties and responsibilities of employers and workers. The objectives of the code are: To secure settlement of disputes by negotiation, conciliation and voluntary arbitration. To eliminate all forms of coercion, intimidation and violence. To maintain discipline in the industry. To avoid work stoppage. To promote constructive co-operation between the parties concerned at all levels. 3. Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of works committees. In case of any industrial establishment in which 100 or more workers are employed, a works committee consisting of employees and workers is to be constituted; it shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations among the employees and workers. 4. Joint Management Councils: 5. Suggestion Schemes: 6. Joint Councils: 7. Collective Bargaining: Collective Bargaining is a process in which the representatives of the employer and of the employees meet and attempt to negotiate a contract governing the employer-employee-union relationships. Collective Bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. 8. Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour welfare officer in every factory employing 500 or more workers. The officer looks after all facilities in the factory provided for the health, safety and welfare of workers. He maintains liaison with both the employer and the workers, thereby serving as a communication link and contributing towards healthy industrial relations through proper administration of standing orders, grievance procedure etc. 9. Tripartite bodies: Several tripartite bodies have been constituted at central, national and state levels. The India labour conference, standing labour committees, Wage Boards and Industries Committees operate at the central level. At the state level, State Labour Advisory Boards have been set up. All these bodies play an important role in reaching agreements on various labour-related issues. The recommendations given by these bodies are however advisory in nature and not statutory.


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Machinery for settlement of Industrial Disputes in Thirthahalli Refinery

1. Conciliation: Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with a view to discuss, reconcile their differences and arrive at an agreement through mutual consent. The third party acts as a facilitator in this process. Conciliation is a type of state intervention in settling the Industrial Disputes. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands. Conciliation Officer: The appropriate government may, by notification in the official gazette, appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a conciliation officer are: a) To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned. b) To investigate the dispute in order to bring about the settlement between the parties concerned. c) To send a report and memorandum of settlement to the appropriate government. d) To send a report to the government stating forth the steps taken by him in case no settlement has been reached at. The conciliation officer however has no power to force a settlement. He can only persuade and assist the parties to reach an agreement. The Industrial Disputes Act prohibits strikes and lockouts during that time when the conciliation proceedings are in progress. 2. Arbitration: A process in which a neutral third party listens to the disputing parties, gathers information about the dispute, and then takes a decision which is binding on both the parties. The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens to both the parties and then gives his judgement.

Advantages of Arbitration:
It is established by the parties themselves and therefore both parties have good faith in the arbitration process. The process in informal and flexible in nature. It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations.

Delay often occurs in settlement of disputes. Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management. Judgement can become arbitrary when the arbitrator is incompetent or biased. There are two types of arbitration:


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a) Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him. b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not. Usually, when the parties fail to arrive at a settlement voluntarily, or when there is some other strong reason, the appropriate government can force the parties to refer the dispute to an arbitrator. 3. Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of adjudication, the Industrial Disputes Act provides a 3-tier machinery: a) Labour court b) Industrial Tribunal c) National Tribunal a) Labour Court: The appropriate government may, by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. They are: Dismissal or discharge or grant of relief to workmen wrongfully dismissed. Illegality or otherwise of a strike or lockout. Withdrawal of any customary concession or privileges.

Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order referring such a dispute, submit its report to the appropriate government. b) Industrial Tribunal: The appropriate government may, by notification in the official gazette, constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters: Wages Compensatory and other allowances Hours of work and rest intervals Leave with wages and holidays Bonus, profit-sharing, PF etc. Rules of discipline


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Retrenchment of workmen Working shifts other than in accordance with standing orders

It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time. c) National Tribunal: The central government may, by notification in the official gazette, constitute one or more National Tribunals for the adjudication of Industrial Disputes in Matters of National importance Matters which are of a nature such that industries in more than one state are likely to be interested in, or are affected by the outcome of the dispute. It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time.

Workers Participation in Management A suitable step taken by the management of IOCL

Workers participation in management is an essential ingredient of Industrial democracy. The concept of workers participation in management is based on Human Relations approach to Management which brought about a new set of values to labour and management. Traditionally the concept of Workers Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. Workers participation is also known as labour participation or employee participation in management. In Germany it is known as co-determination while in Yugoslavia it is known as selfmanagement. The International Labour Organization has been encouraging member nations to promote the scheme of Workers Participation in Management. Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. It is considered as a mechanism where workers have a say in the decision-making. Definition: According to Keith Davis, Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share the responsibility of achievement. According to Walpole, Participation in Management gives the worker a sense of importance, pride and accomplishment; it gives him the freedom of opportunity for self-expression; a feeling of belongingness with the place of work and a sense of workmanship and creativity. The concept of workers participation in management encompasses the following: It provides scope for employees in decision-making of the organization. The participation may be at the shop level, departmental level or at the top level.


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The participation includes the willingness to share the responsibility of the organization by the workers.

Features of WPM:
1. Participation means mental and emotional involvement rather than mere physical presence. 2. Workers participate in management not as individuals but collectively as a group through their representatives. 3. Workers participation in management may be formal or informal. In both the cases it is a system of communication and consultation whereby employees express their opinions and contribute to managerial decisions. 4. There can be 5 levels of Management Participation or WPM: a. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matter of general economic importance. b. Consultative importance: Here workers are consulted on the matters of employee welfare such as work, safety and health. However, final decision always rests with the top-level management, as employees views are only advisory in nature. c. Associative participation: It is an extension of consultative participation as management here is under the moral obligation to accept and implement the unanimous decisions of the employees. Under this method the managers and workers jointly take decisions. d. Administrative participation: It ensures greater share of workers participation in discharge of managerial functions. Here, decisions already taken by the management come to employees, preferably with alternatives for administration and employees have to select the best from those for implementation. e. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relating to production, welfare etc.

Objectives of WPM:
1. To establish Industrial Democracy. 2. To build the most dynamic Human Resources. 3. To satisfy the workers social and esteem needs. 4. To strengthen labour-management co-operation and thus maintain Industrial peace and harmony. 5. To promote increased productivity for the advantage of the organization, workers and the society at large. 6. Its psychological objective is to secure full recognition of the workers.


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Strategies / Methods / Schemes / Forms of WPM:

1. Suggestion schemes: Participation of workers can take place through suggestion scheme. Under this method workers are invited and encouraged to offer suggestions for improving the working of the enterprise. A suggestion box is installed and any worker can write his suggestions and drop them in the box. Periodically all the suggestions are scrutinized by the suggestion committee or suggestion screening committee. The committee is constituted by equal representation from the management and the workers. The committee screens various suggestions received from the workers. Good suggestions are accepted for implementation and suitable awards are given to the concerned workers. Suggestion schemes encourage workers interest in the functioning of an enterprise. 2. Works committee: Under the Industrial Disputes Act, 1947, every establishment employing 100 or more workers is required to constitute a works committee. Such a committee consists of equal number of representatives from the employer and the employees. The main purpose of this committee is to provide measures for securing and preserving amity and good relations between the employer and the employees.

Functions: Works committee deals with matters of day-to-day functioning at the

shop floor level. Works committees are concerned with: Conditions of work such as ventilation, lighting and sanitation. Amenities such as drinking water, canteens, dining rooms, medical and health services. Educational and recreational activities. Safety measures, accident prevention mechanisms etc. Works committees function actively in some organizations like Tata Steel, HLL, etc but the progress of Works Committees in many organizations has not been very satisfactory due to the following reasons: Lack of competence and interest on the part of workers representatives. Employees consider it below their dignity and status to sit alongside bluecollar workers. Lack of feedback on performance of Works Committee. Undue delay and problems in implementation due to advisory nature of recommendations. 3. Joint Management Councils: Under this system Joint Management Councils are constituted at the plant level. These councils were setup as early as 1958. These councils consist of equal number of representatives of the employers and employees, not exceeding 12 at the plant level. The plant should employ at least 500 workers. The


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council discusses various matters relating to the working of the industry. This council is entrusted with the responsibility of administering welfare measures, supervision of safety and health schemes, scheduling of working hours, rewards for suggestions etc. Wages, bonus, personal problems of the workers are outside the scope of Joint management councils. The council is to take up issues related to accident prevention, management of canteens, water, meals, revision of work rules, absenteeism, indiscipline etc. the performance of Joint Management Councils have not been satisfactory due to the following reasons: Workers representatives feel dissatisfied as the councils functions are concerned with only the welfare activities. Trade unions fear that these councils will weaken their strength as workers come under the direct influence of these councils.

4. Work directors: Under this method, one or two representatives of workers are nominated or elected to the Board of Directors. This is the full-fledged and highest form of workers participation in management. The basic idea behind this method is that the representation of workers at the top-level would usher Industrial Democracy, congenial employee-employer relations and safeguard the workers interests. The Government of India introduced this scheme in several public sector enterprises such as Hindustan Antibiotics, Hindustan Organic Chemicals Ltd etc. However the scheme of appointment of such a director from among the employees failed miserably and the scheme was subsequently dropped. 5. Co-partnership: Co-partnership involves employees participation in the share capital of a company in which they are employed. By virtue of their being shareholders, they have the right to participate in the management of the company. Shares of the company can be acquired by workers making cash payment or by way of stock options scheme. The basic objective of stock options is not to pass on control in the hands of employees but providing better financial incentives for industrial productivity. But in developed countries, WPM through co-partnership is limited. 6. Joint Councils: The joint councils are constituted for the whole unit, in every Industrial Unit employing 500 or more workers, there should be a Joint Council for the whole unit. Only such persons who are actually engaged in the unit shall be the members of Joint Council. A joint council shall meet at least once in a quarter. The chief executive of the unit shall be the chairperson of the joint council. The vice-chairman of the joint council will be nominated by the worker members of the council. The decisions of the Joint Council shall be based on the consensus and not on the basis of voting. In 1977 the above scheme was extended to the PSUs like commercial and service sector organizations employing 100 or more persons. The organizations include hotels, hospitals, railway and road transport, post and telegraph offices, state electricity boards. 7. Shop councils: Government of India on the 30th of October 1975 announced a new scheme in WPM. In every Industrial establishment employing 500 or more workmen, the


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employer shall constitute a shop council. Shop council represents each department or a shop in a unit. Each shop council consists of an equal number of representatives from both employer and employees. The employers representatives will be nominated by the management and must consist of persons within the establishment. The workers representatives will be from among the workers of the department or shop concerned. The total number of employees may not exceed 12.

Functions of Shop Councils:

1. Assist management in achieving monthly production targets. 2. Improve production and efficiency, including elimination of wastage of man power. 3. Study absenteeism in the shop or department and recommend steps to reduce it. 4. Suggest health, safety and welfare measures to be adopted for smooth functioning of staff. 5. Look after physical conditions of working such as lighting, ventilation, noise and dust. 6. Ensure proper flow of adequate two way communication between management and workers.


Workers participation in Management in India was given importance only after Independence. Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting up of works committees. The joint management councils were established in 1950 which increased the labour participation in management. Since July 1975 the two-tier participation called shop councils at shop level and Joint councils were introduced. Workers participation in Management Bill, 1990 was introduced in Parliament which provided scope for upliftment of workers.

Reasons for failure of Workers participation Movement in India:

1. Employers resist the participation of workers in decision-making. This is because they feel that workers are not competent enough to take decisions. 2. Workers representatives who participate in management have to perform the dual roles of workers spokesman and a co-manager. Very few representatives are competent enough to assume the two incompatible roles. 3. Generally Trade Unions leaders who represent workers are also active members of various political parties. While participating in management they tend to give priority to political interests rather than the workers cause. 4. Schemes of workers participation have been initiated and sponsored by the Government. However, there has been a lack of interest and initiative on the part of both the trade unions and employers.


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5. In India, labour laws regulate virtually all terms and conditions of employment at the workplace. Workers do not feel the urge to participate in management, having an innate feeling that they are born to serve and not to rule. 6. The focus has always been on participation at the higher levels, lower levels have never been allowed to participate much in the decision-making in the organizations. 7. The unwillingness of the employer to share powers with the workers representatives, the disinterest of the workers and the perfunctory attitude of the government towards participation in management act as stumbling blocks in the way of promotion of participative management.

Measures for making Participation effective:

1. Employer should adopt a progressive outlook. They should consider the industry as a joint endeavour in which workers have an equal say. Workers should be provided and enlightened about the benefits of their participation in the management. 2. Employers and workers should agree on the objectives of the industry. They should recognize and respect the rights of each other. 3. Workers and their representatives should be provided education and training in the philosophy and process of participative management. Workers should be made aware of the benefits of participative management. 4. There should be effective communication between workers and management and effective consultation of workers by the management in decisions that have an impact on them. 5. Participation should be a continuous process. To begin with, participation should start at the operating level of management. 6. A mutual co-operation and commitment to participation must be developed by both management and labour. Modern scholars are of the mind that the old adage a worker is a worker, a manager is a manager; never the twain shall meet should be replaced by managers and workers are partners in the progress of business


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Good relations between the employer and employees are essential for the success of industry. In order to maintain good relations, it is necessary that industrial disputes are settled quickly and amicably. One of the efficient methods of resolving industrial disputes and deciding the employment conditions is Collective Bargaining. Industrial disputes essentially refer to differences or conflicts between employers and employees. Collective Bargaining is a process in which the management and employee representatives meet and negotiate the terms and conditions of employment for mutual benefit. Collective bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. It is termed Collective because both the employers negotiators and the employees act as a group rather than individuals. It is known as Bargaining because the method of reaching an agreement involves proposals and counterproposals, offers and counter offers. There should be no outsiders involved in the process of collective bargaining. According to Walton and McKersie the process of Collective Bargaining consists of four types of activities: 1) Distributive Bargaining: It involves haggling over the distribution of surplus. Various activities involved in this activity are wages, salaries, bonus and other financial issues. In this activity, both the parties face a win/lose situation. 2) Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are not damaging to either party are discussed. It is a negotiation strategy in which both the parties collaborate to find a win-win solution to their problems. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Issues brought up may be better job evaluation procedures, better performance appraisal methods or training programmes etc. 3) Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to shape their opponents' perceptions about the nature of the issues to be negotiated. By cultivating an atmosphere of friendliness, mutual respect, trust, and cooperation, negotiators can encourage their opponents to view issues largely in integrative terms and participate in joint problem solving. This activity involves shaping and reshaping some perceptions like trust/distrust, friendliness/hostility, co-operative/noncooperative between the labour and management. When there is a backlog of bitterness between both the parties, attitudinal structuring is required to maintain smooth and harmonious industrial relations. 4) Intra-Organisational Bargaining: It is a type of manoeuvring to achieve consensus among the workers and management. Even within the union there may be differences between different groups as may be the case with the management. Intra-


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organisational consensus is required for the smooth acceptance of the outcome of Collective Bargaining.

Objectives of Collective Bargaining:

1. To maintain cordial relations between the employer and employees. 2. To protect the interests of the workers through collective action and by preventing unilateral actions from being taken by the employer. 3. To ensure the participation of trade unions in industry. 4. To avoid the need for government intervention as collective bargaining is a voluntary collective process. 5. To promote Industrial democracy.

Characteristics of Collective Bargaining:

1. It is a group or collective action as opposed to individual action. It is initiated through the representatives of the employees. 2. It is a flexible and dynamic process where-in no party adopts a rigid attitude. 3. It is a continuous process, which provides a mechanism for continuous negotiations and discussions between management and the trade unions. 4. It is a voluntary process without any third-party intervention. Both workers and management voluntarily participate in the negotiations, discuss and arrive at a solution. That is why it is known as a bipartite process where workers representatives and management get an opportunity for clear, face-to-face communication. 5. It ensures industrial democracy at the workplace; it is a self-run government in action. 6. It is a two-way process. It is a mutual give and take rather than a take home all method of arriving at a solution to a dispute.


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Process of Collective Bargaining

Preparation for Negotiation

Identifying issues for Bargaining


Negotiated Agreement Ratification of Agreement

Implementation of Agreement 1. Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as important as the negotiation process itself. Upto 83% of the outcomes are influenced by pre-negotiation process. Such preparation is required for both management as well as the union representatives. From the managements point of view, pre-negotiation preparation is required as: Management should decide when and how to open the negotiations/dialogue. Management must choose the representatives to negotiate at the negotiation table. Draft for likely decisions should be prepared in advance so that the final agreement draft can be prepared as soon as the negotiation process is over. From the employees side also, preparation is required for the following reasons: The union should collect the information related to the financial position of the company and their ability to pay the employees. The union must also be aware of the various practices followed by other companies in the same region or industry. The union must assess the attitudes and expectations of the employees over concerned issues so that the outcome of negotiations does not face any resistance from them.

2. Identifying issues for Bargaining: The second step in bargaining process is the determination of issues which will be taken up for negotiations. The different types of issues are:


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Wage-related issues: Include wage or salary revision, allowance for meeting increased cost of living like Dearness Allowance (D.A), financial perks, incentives etc. Supplementary economic benefits: These include pension plans, gratuity plans, accident compensation, health insurance plans, paid holidays etc. Administrative issues: Include seniority, grievance procedures, employee health and safety measures, job security and job changes. The wage and benefits issues are the ones which receive the greatest amount of attention on the bargaining table. 3. Negotiation: When the first two steps are completed, both parties engage in actual negotiation process at a time and place fixed for the purpose. There a re two types of negotiations: Boulwarism: In this method, the management themselves takes the initiative to find out through comprehensive research and surveys the needs of the employees. Based on the analysis of the findings, the company designs its own package based on the issues to be bargained. Thereafter, a change is incorporated only when new facts are presented by the employees or their unions. Continuous Bargaining: Involves parties to explore particular bargaining problems in joint meetings over a long period of time, some throughout the life of each agreement. The basic logic behind this method is that all persistent issues can be addressed through continuous negotiation over a period of time. The success of negotiations depends on the skills and abilities of the negotiators. 4. Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement either in the initial stage or through overcoming negotiation breakdown, the agreement is recorded with a provision that the agreement will be formalized after the ratification by the respective organizations. 5. Ratification of agreement: Ratification of negotiated agreement is required because the representatives of both the parties may not have ultimate authority to decide various issues referred to for collective bargaining. The ratification of agreement may be done by the appropriate manager authorized for the purpose in the case of management, or trade executives in the case of the employees. Ratification is also required by the Industrial Disputes Act. It is important that the agreement must be clear and precise. Any ambiguity leads to future complications or other such problems. 6. Implementation of agreement: Signing the agreement is not the end of collective bargaining, rather it is the beginning of the process when the agreement is finalized, it becomes operational from the date indicated in the agreement. The agreement must be implemented according to the letter and spirit of the provisions made by the agreement agreed to by both parties. The HR manager plays a crucial role in the day-to-day administration implementation.


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A research methodology is a sample framework or a plan for study that is used as a guide for conducting research . It is a blueprint that is followed in processing research work. Thus in good research methodology the line of action has to be chosen carefully from various alternatives.

Meaning of research
Research in common parlance refers to a search for knowledge. Research can be explained as a movement, a movement from known to unknown. It is actually a voyage of discovery. Research always starts with a question or problem. Its purpose is to find answers to questions through the application to the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. So Research is scientific and systematic search for gaining information and knowledge on a specific topic or phenomena.

Research Design
Research Design is the plan and structure of investigation so conceived as to ob tain answers to research questions.

Nature of Research
Descriptive Research design is used for study. Descriptive research as the name suggests is designed to describe something for example the characteristics of users of a given product ; the degree to which product use varies with income, age, sex or other characteristics; or the number who saw a specific television commercial. To be of maximum benefit, a descriptive study must only collect data for a definite purpose. Your objective and understanding should be clear and specific. It is a kind of survey method.

This project study is related with the inventory management so the data is collected in this regard only. I studied the various types of inventory through out the training period.


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This project is mainly based on the secondary data and information beside this primary data is also used.

1) Primary data:- primary data are to be collected by the researcher , they are not present in reports or journals etc. and can be collected through a number of method which can be classified as follow

Personal interview of sample. Telephonic interview. E- Mails. Observations. Questionnaires. Interviews.

Primary data for my project : The primary data for my research is the dispatch registers maintained by the company to know the purchase and stock of inventory in the organization.

2) Secondary data:- Secondary data are the data collected for some purpose other than the research situations; such data are available from the sources such as books, company reports,


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journals, rating organization, census department etc.. The secondary data are readily available and therefore they are less costly and less time consuming. Sources of secondary data are

Internets. Book and journals. Company reports. Census department. Research work of others.

Secondary data for my project: Mainly the used in this project is secondary. The data is the already maintained in the manuals.

Survey period is of few weeks from June 14th, 2010 to July 27th, 2010. It is not enough periods for the study to get the accurate a specific result of the study.


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Sample Size:Sample unit:40 employees Indian oil cor. Ltd.

Method of sampling:-

Simple randam sampling Primary & secondary Descriptive Design

Method of data collection:-

Research design :-


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TOTAL NO OF RESPONDENTS =40 1) Are you satisfied with the Working Condition in IOCL? Total Respondents SATISFIED DISSATISFIED I. R. Rating 15 25 % of Respondents 37.5 62.5

70 60 50 40 30 20 10 0
satisfied dissatisfied


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2) Are you aware of all the Welfare schemes provided by IOCL? I. R. Rating YES NO 5 Total Respondents 35 % of Respondents 87.5 12.5

80 70 60 50 40 30 20 10 0
satsisfied dissatisfied


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3) Are you satisfied with the wages and incentives provided by IOCL.? I. R. Rating SATISFIED DISSATISFIED Total Respondents 30 10 % of Respondents 75 25

90 80

70 60
50 40 30 20 10 0
satsisfied dissatisfied


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4) Are you satisfied with the provision of canteen at your workplace provided by IOCL? I. R. Rating SATISFIED DISSATISFIED Total Respondents 25 15 % of Respondents 62.5 37.5

70 60

40 30 20 10 0
satsisfied dissatisfied


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5) Are you satisfied with the provision of toilets at your workplace provided by IOCL? I. R. Rating SATISFIED DISSATISFIED Total Respondents 33 7 % of Respondents 82.5% 17.5%

90 80 70 60 50 40 30 20 10 0
satsisfied dissatisfied


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6) Are you satisfied the Drinking Water facility in IOCL? I. R. Rating SATISFIED DISSATISFIED Total Respondents 32 8 % of Respondents 80 20

80 70 60 50 40 30 20 10 0
satsisfied dissatisfied


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7) Are you satisfied with compensation provided by IOCL? I. R. Rating SATISFIED DISSATISFIED Total Respondents 17 23 % of Respondents 42.5 57.5

60 50 40 30 20 10 0
satsisfied dissatisfied


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8) Are you satisfied with the medical benefits provided by IOCL? I. R. Rating SATISFIED DISSATISFIED Total Respondents 18 22 % of Respondents 45 55

60 50 40 30 20 10 0
satsisfied dissatisfied


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9) Are you satisfied retirement benefits provided by IOCL? I. R. Rating SATISFIED DISSATISFIED Total Respondents 8 32 % of Respondents 20 80

80 70 60 50 40 30 20 10 0


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10) Are you satisfied with the recreation facilities? I. R. Rating SATISFIED DISSATISFIED Total Respondents 5 35 % of Respondents 12.5 87.5

90 80 70 60 50 40 30 20 10 0
satsisfied dissatisfied


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37.5% Employees are satisfied, and 62.5% dissatisfied with the working condition provided by the IOC Ltd. Majority of Employees are aware about the welfare schemes provided by the IOC Ltd. Majority of Employees are satisfied with the salary and incentives provided by the IOC Ltd. 62.5% Employees are satisfied, with the rest room facility provided by the IOC Ltd. Majority of Employees are satisfied with the drinking water facility provided by the IOC Ltd. Majority of Employees are satisfied with their job profile. 42.5% of Employees are satisfied, 57.5% are dissatisfied with the compensation provided by the IOC Ltd. Majority of Employees are dissatisfied with the medical benefits provided by the IOC Ltd. Majority of employees are dissatisfied with the retirement benefits provided by the IOC Ltd. Majority of employees are dissatisfied with the recreation facilities provided by the IOC Ltd. 60% satisfied and remaining employees are dissatisfied with the transport facilities provided by the IOC Ltd. 40% are dissatisfied with the grievance handling procedure of the company.





6) 7)







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1) The sample collected is very small compared to the population of the company. Thus it may not bring out the exact analysis. 2) Some of the respondents do not react favorably to the questionnaires. 3) It is possible that respondents might have tried to maintain consistency in terms of their responses. 4)time of 6-8 weeks are also very less for the study.


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CONCLUSION Indian Oil Cor. Ltd. is growing at a very good place .As from graphs it is clear that the industrial relation operation in IOC Ltd. is effective one.There are different kind of welfare schemes like weekly rest ,medical allowance, death relief fund are provided by the company to the employees to maintain the industrial relation better one . Instead of all that there is also a effective grievance handling machinery for maintaning it.


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If the employees are in good condition then it drives their capability to give maximum output to the company. Indian Oil Co.Ltd. had successfully accomplished their target to uplift the standards of the people but somewhere they lag behind to give proper insight into the true benefits availed to the people. In this context I want to suggest some points that are more or less based on my findings. 1)Implementation of the Code of Discipline. 2) I also found that there is no medical Officer. This is needed to provide quick action in case of any accident. 3)there should be need of improvement in recreation facilities provided by the Indian Oil corporation Ltd. 4)there should need to increase the retirement benefits provided by the Indian Oil Corporation Ltd. 5)management should provide wage revision to the employees which is due from January 2007. 6)internal management should be more strong so that it can create more healthy working conditions in the organization.


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Manual and books: Personnel Manual by Indian oil corporation Limited.. Industrial Relations & Labour laws (fourth edition) by S C Srivastava Personnel Management by S.K. Gupta Human Resource Management (second edition) by V.S.P. Rao Search Engine: Website:


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Employee Name: _______________ Designation: ___________

1) Are you satisfied with the Working Condition in IOC Limited? a)Yes b)No 2) Are you aware of all the Welfare Activities in IOC Limited?? a)Yes b)No 3) Are you satisfied with the wages and incentives provided by IOC Ltd.? a)Yes b) No 4) Are you satisfied with the provision of toilets at your workplace? a)Yes b)No 5) Are you satisfied the Drinking Water facility in IOC Limited? a)Yes b) No 6) Are you satisfied with the compensation provided by IOC Ltd? a)Yes b)No

7) Are you satisfied with the medical benefits provided by IOC Ltd? a)Yes b)No

8) Are you satisfied retirement benefits provided by IOC Ltd? a)Yes b)No 9) Are you satisfied with the recreation facilities provided by the company? a)Yes b)No 10)Are you satisfied with the transport facility provided to you by the IOC Ltd? a)yes b)No 11)Is there any kind of grievance handling procedure provided to you by the IOC Ltd? a)yes b)No 12)Are you satisfied with the grievance handling procedure provided to you by the company? a)yes c)No 13)if there any suggestion regarding to improve the industrial relation operation in IOC Ltd.please mention here


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