KARNATAKA STATE OPEN UNIVERSITY

Mukthagangotri, Mysore 570 006

DEPARTMENT OF STUDIES AND RESEARCH IN LAW

Synopsis
EFFECTIVE IMPLEMENTATION OF INDUSTRIAL RELATIONS
IN MYSORE PAINTS AND VARNISH LIMITED (MPVL)
FOR BETTER PRODUCTIVITY

By

KRISHNAN N
Register No. : 13300100002700000013

Under the guidance of

Dr. C SUMANGALA, M.B.A, Ph.D.
Assistant Professor and Head of Department,
Department of Management Sciences,
Yuvarajas College (Autonomous)
University of Mysore,
Mysore 570 006

The Dissertation is submitted in partial fulfilment of requirements for the

award of
Master of Business Administration (LAW) Postgraduate degree
1

CONSENT BY THE GUIDE

This is to inform that I am willing to be the External Guide to Krishnan N, presently

pursuing his, M.B.A (LAW) under KSOU and his register no. is13300100002700000013.

Date: 28/09/2015
Place: Mysore

Dr. C Sumangala, M.B.A, Ph.D.

Assistant Professor and Head of Department,
Department of Management Sciences,
Yuvarajas College (Autonomous)
University of Mysore,
Mysore 570 006

DECLARATION BY THE CANDIDATE

I, Krishnan N, 4th semester, M.B.A (LAW), Register No. 13300100002700000013 do hereby

declare that I myself has authored this dissertatoion on Effective Implementation Of
Industrial Relations In Mysore Paints And Varnish Limited (MPVL) For Better
Productivity in partial fulfilment of requirement for the award of M.B.A (LAW)
Postgraduate degree. It is my original work and not submitted to any other university.

Date: 28/09/2015
Place: Mysore

KRISHNAN N
Reg No.: 13300100002700000013

TABLE OF CONTENTS

CONTENTS

Page No.

Consent by guide

ii

Declaration by candidate

iii

Table of contents

iv

List of abbreviations

Various acts / policies / standards of labour

vi

Chapter 1
1.1 Introduction

1.2 Research problem

1.3 Objectives of the study

1.4 Hypothesis

1.5 Scope of study

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1.6 Importance of study

10

1.7 Research methodology

10

1.8 Chapterisation

11

Annexure

12

Bibliography

14

LIST OF ABBREVIATIONS

MPVL

Mysore Paints and Varnishes Limited

IDA

Industrial Dispute Act

ILO

International Labour Organisation

IR

Industrial Relation

VARIOUS ACTS / POLICIES / STANDARDS OF LABOUR

Indian Trade Union Act 1926

Industrial Dispute Act 1947
Minimum Wages Act 1948
Employees State Insurance Act 1948
The Employees Provident Fund Act 1952
New Economic Policy 1991
International Labour Organisation 1919
International Standard of Labour

CHAPTER 1
1.1. INTRODUCTION
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.1
Industrial relations has become one of the most delicate and complex problems of modern
industrial society. Industrial progress is impossible without cooperation of labors and
harmonious relationships. Therefore, it is in the interest of all to create and maintain good
relations between employees (labor) and employers (management). It has been said so far that
given the technological and material inputs and a given capacity of the worker, the will to
work materially affects the productivity of the workers and, therefore, of the enterprise. Apart
from the other influences on the morale of the workers, the quality of industrial relations has
a direct bearing on the workers will to work. When it is said that the quality of industrial
relations has an important bearing on productivity, it is to be realized that it is not so much
the role of strikes and lock outs to be emphasized for linking the importance of industrial
relations to productivity. Apart from the fact of the open stoppages of production or even the
announced go slow or work to rule practices which directly reduce production even under
normal conditions when the work processes are supposed to function smoothly, the quality of
industrial relations continues to influence the worker's behaviour and his attitude to work.2
The concept of Industrial relations has been defined using various terminologies, but in the
strictest sense, it is essentially the relationship between management and labor. The full
concept of industrial relations is the organization and practice of multi-pronged relationships
between labor and management, unions and labor, unions and management in an industry.3
Basically, Industrial relations sprouts out of employment relation. Hence, it is broader in
meaning and wider in scope. Industrial relations is dynamic and developing socio-economic
process. As such, there are as many as definitions of Industrial relations as the authors on the
subject. Some important definitions of IR are produced here.

INDUSTRIAL RELATIONS - DEFINITIONS

According to Dale Yoder, Industrial relations is a designation of a whole field of relationship

that exists because of the necessary collaboration of men and women in the employment
processes of Industry.
Armstrong has defined it as Industrial relations is concerned with the systems and
procedures used by unions and employers to determine the reward for effort and other
conditions of employment, to protect the interests of the employed and their employers and to
regulate the ways in which employers treat their employees
In the opinion of V. B. Singh Industrial relations are an integral aspect of social relations
arising out of employer-employee interaction in modern industries which are regulated by the
State in varying degrees, in conjunction with organised social forces and influenced by the
existing institutions. This involves a study of the State, the legal system, and the workers and
employers organizations at the institutional level; and of the patterns of industrial
organisation (including management), capital structure (including technology), compensation
of the labour force, and a study of market forces all at the economic level.
Encyclopedia Britannica defined Industrial relations more elaborately as The concept of
industrial relations has been extended to denote the relations of the state with employers,
workers, and other organisations. The subject, therefore, includes individual relations and
joint consultation between employers and workers at their places of work, collective relations
between employers and trade unions; and the part played by the State in regulating these
relations.
Thus, Industrial relations can now safely be defined as a coin having two faces: co- operation
and conflict. This relationship undergoes change from thesis to antithesis and then to
synthesis. Thus, the relationship starting with co-operation soon changes into conflict and
after its resolution again changes into cooperation. This changing process becomes a
continuous feature in industrial system and makes IR concept as dynamic and evolving one.
OVERVIEW
Industrial relations has three faces: science building, problem solving, and ethical. In the
science building phase, industrial relations is part of the social sciences, and it seeks to
understand the employment relationship and its institutions through high-quality, rigorous
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research. In this vein, industrial relations scholarship intersects with scholarship in labor
economics, industrial sociology, labor and social history, human resource management,
political science, law, and other areas.
Industrial relations scholarship assumes that labor markets are not perfectly competitive and
thus, in contrast to mainstream economic theory, employers typically have greater bargaining
power than employees. Industrial relations scholarship also assumes that there are at least
some inherent conflicts of interest between employers and employees (for example, higher
wages versus higher profits) and thus, in contrast to scholarship in human resource
management and organizational behavior, conflict is seen as a natural part of the employment
relationship. Industrial relations scholars therefore frequently study the diverse institutional
arrangements that characterize and shape the employment relationshipfrom norms and
power structures on the shop floor, to employee voice mechanisms in the workplace, to
collective bargaining arrangements at company, regional, or national level, to various levels
of public policy and labor law regimes, to "varieties of capitalism" (such as corporatism,
social, and neo liberalism).
When labor markets are seen as imperfect, and when the employment relationship includes
conflicts of interest, then one cannot rely on markets or managers to always serve workers'
interests, and in extreme cases to prevent worker exploitation. Industrial relations scholars
and practitioners therefore support institutional interventions to improve the workings of the
employment relationship and to protect workers' rights. The nature of these institutional
interventions, however, differs between two camps within industrial relations. The pluralist
camp sees the employment relationship as a mixture of shared interests and conflicts of
interests that are largely limited to the employment relationship. In the workplace, pluralists
therefore champion grievance procedures, employee voice mechanisms such as works
councils and labor unions, collective bargaining, and labor-management partnerships. In the
policy arena, pluralists advocate for minimum wage laws, occupational health and safety
standards, international labor standards, and other employment and labor laws and public
policies. These institutional interventions are all seen as methods for balancing the
employment relationship to generate not only economic efficiency, but also employee equity
and voice. In contrast, the Marxist-inspired critical camp sees employer-employee conflicts of
interest as sharply antagonistic and deeply embedded in the socio-political-economic system.
From this perspective, the pursuit of a balanced employment relationship gives too much
weight to employers' interests, and instead deep-seated structural reforms are needed to
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change the sharply antagonistic employment relationship that is inherent within capitalism.
Militant trade unions are thus frequently supported.
THEORETICAL PERSPECTIVES
Industrial relations scholars have described three major theoretical perspectives or
frameworks that contrast in their understanding and analysis of workplace relations. The three
views are generally known as unitarism, pluralist and radical. Each offers a particular
perception of workplace relations and will therefore interpret such events as workplace
conflict, the role of unions and job regulation differently. The radical perspective is
sometimes referred to as the "conflict model", although this is somewhat ambiguous, as
pluralism also tends to see conflict as inherent in workplaces. Radical theories are strongly
identified with Marxist theories, although they are not limited to these.
HISTORY
Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labor markets and large-scale industrial
organizations with thousands of wage workers. As society wrestled with these massive
economic and social changes, labor problems arose. Low wages, long working hours,
monotonous and dangerous work, and abusive supervisory practices led to high employee
turnover, violent strikes, and the threat of social instability. Intellectually, industrial relations
was formed at the end of the 19th century as a middle ground between classical economics
and Marxism, with Sidney Webb and Beatrice Webb's Industrial Democracy (1897) being the
key intellectual work. Industrial relations thus rejected the classical econ.
Institutionally, industrial relations was founded by John R. Commons when he created the
first academic industrial relations program at the University of Wisconsin in 1920. Another
scholarly pioneer in industrial relations and labor research was Robert F. Hoxie.Early
financial support for the field came from John D. Rockefeller, Jr. who supported progressive
labor-management relations in the aftermath of the bloody strike at a Rockefeller-owned coal
mine in Colorado. In Britain, another progressive industrialist, Montague Burton, endowed
chairs in industrial relations at Leeds, Cardiff and Cambridge in 1930.
Beginning in the early 1930s there was a rapid increase in membership of labor unions in
America, and with that came frequent and sometimes violent labor-management
conflict. During World War II these were suppressed by the arbitration powers of the National
War Labor Board.
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However, as World War II drew to a close and in anticipation of a renewal of labormanagement conflict after the war, there was a wave of creations of new academic institutes
and degree programs that sought to analyze such conflicts and the role of collective
bargaining. The most known of these was the Cornell University School of Industrial and
Labor Relations, founded in 1945. But counting various forms, there were over seventy-five
others. These included the Yale Labor and Management Center, directed by E. Wight Bakke,
which began in 1945. An influential industrial relations scholar in the 1940s and 1950s
was Neil W. Chamberlain at Yale and Columbia Universities. The discipline was formalized
in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.
Industrial relations was formed with a strong problem-solving orientation that rejected both
the classical economists' laissez faire solutions to labor problems and the Marxist solution of
class revolution. It is this approach that underlies the New Deallegislation in the United
States, such as the National Labor Relations Act and the Fair Labor Standards Act.
EVOLUTION OF INDUSTRIAL RELATIONS IN INDIA
The evolution of industrial relations in India began a long time ago. The caste system greatly
influenced the ancient industries and their development. Due to successive foreign invasions
in India, the living conditions of slave and artesian couldn't be differentiated. Furthermore,
under the autocratic regime of Muslim rulers, the conditions of employees worsened. Wages
were not guaranteed, the living conditions of workers were harsh, and there was no proper
management. The coming of the British didn't improve the working conditions. After some
time, however, most Indian industries were modeled after the British system of business, and
this led to growth in various sectors.
Industrial Relations under British Rule:
During British rule, India was expected to be a colonial market for British goods up until a
cotton mill was established in Mumbai in 1853 and a jute mill was established in Kolkatta in
1955. The working conditions of workers, however, were still very harsh with low pay, and
this gave rise to various disputes involving the management and employees. On the other
hand, Tata Iron and Steel industry was also established in Jamshedpur in 1911. While there
was great demand of iron and steel before and during the First World War, the working
conditions of workers hadn't improved. Hence, the Factories Act of 1881 was established, and
it granted workers certain rights.

Industrial Relations in First World War:

The First World War was an opportunity in disguise for local factories in India. Prices of
virtually all products went up and profits soared, however, wages of lower employees were
still the same. There were various strikes and disputes between management and employees.
During this time, the Workmen's Compensation Act (1923), the Trade Union Act (1926), and
the Trade Disputes Act (1917) were established. While the wages of employees remained the
same, they were given a certain share of profits made by their hiring industry. Strikes,
however, were sometimes prohibited under the Emergency Rules. The years following World
War II involved the most workers' upheaval, and saw the establishment of Industrial
Employment Act (1946) and Industrial Disputes Act (1947).
Post-Independence Industrial Relations:
The post-independence era saw a developing relation between industry and labor. A
conference called the Industrial Truce Resolution took place in 1947, and foresaw the
establishment of the Minimum Wages Act, Factories Act, and Employees State Insurance Act
in 1948. This ensured peace between labor and industry. While industrial relations in India
have evolved a long way, some features of the early system still exist today. Modern
industrial relations are dynamic, and may integrate industrial policies of American and British
businesses.3
Industrial relations today
A Short History of Ideas and Learning Industrial Relations (or labour market relations)
emerged as a multi-disciplinary field of research in Great Britain and the USA about hundred
years ago. However, it took nearly half a century for research and teaching within this broad
field to really gain momentum. As a distinct academic discipline, industrial relations is
primarily an Anglo-Saxon phenomenon. It is only since World War II that a corresponding
multi-disciplinary treatment of the complex of problems pertaining to the employment
relationship, albeit under different labels and in other organizational forms, has emerged in
continental Europe as well
By many accounts, industrial relations today is in crisis. In academia, its traditional positions
are threatened on one side by the dominance of mainstream economics and organizational
behavior, and on the other by postmodernism. In policy-making circles, the industrial
relations emphasis on institutional intervention is trumped by a neoliberal emphasis on the
laissez faire promotion of free markets. In practice, labor unions are declining and fewer
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companies have industrial relations functions. The number of academic programs in

industrial relations is therefore shrinking, and scholars are leaving the field for other areas,
especially human resource management and organizational behavior. The importance of
work, however, is stronger than ever, and the lessons of industrial relations remain vital. The
challenge for industrial relations is to re-establish these connections with the broader
academic, policy, and business worlds.

MYSORE PAINTS AND VARNISH LIMITED5

Mysore Paints and Varnish Limited (MPVL) was established during 1937. It was converted
into public sector undertaking during 1947. MPVL is the Manufacturer & supplier of
decorative paints, industrial paints, thinners, polishes, primers, sealing wax.
MPVL is the only paint manufacturing unit in public sector and thus it has a large market
available in the Government establishments. The company has the exclusive licence to be the
manufacturer and supplier of Indelible Ink (Voters Ink) and has been authorized by the
Election Commission of India to supply the Ink for all the the parliamentary, assembly and
local bodies elections in India since 1962. The Ink has tested nearly 6000 million voters over
the last six decades of General elections
The company also has being exporting the Indelible Ink to various countries across the world
countries like Turkey, Nepal, Papua-new-guinea, Nigeria, South Africa, Ghana, Singapore etc
since 1978 .
MPVL is one of the profit making and dividend declared company in Karnataka among
public sector units. At present, the company is manufacturing all kinds of decorative paints,
industrial paints, polish and varnish.
DYNAMICS OF INDUSTRIAL RELATIONS AND PRODUCTIVITY
Human inputs and productivity
Of the two kinds of inputs, material and human, the human input assumes a crucial role in
any movement for improving productivity. It is a well known fact that the quality of human
input is the determinant of the level of productivity under a particular technological situation.
This quality has two aspects: (a) the capacity to work, i.e., technical efficiency depending
upon training, education, physical climate, standard of living, work environment etc. and (b)
the will to work, depending upon motivation and morale.2
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Relationship between productivity and labour

Productivity may not be far from the nascent realization of the primary and centrality of
humans in economic development and growth process of a nation (Anyawu, 2003).
Productivity can be defined as output per unit of input in a production process. Productivity is
a matter of concern to government bodies, private firms, trade unions and other institutions
not minding the disagreements over its conceptualization by different groups and individuals.
Hence, discussing productivity at all levels is common because of the direct relationship
between productivity and the standard of living of a people. In effect, productivity becomes
the attainment of the highest level of performance with the lowest possible expenditure of
resources.2
Industrial relations contributes to productivity
The idea that industrial relations affect productivity derives from a supposition that they have
favourable influence over owners, managers and workers. They may do so because they
affect the ability of management to manage; because they affect the levels of antagonism and
cooperation in the workplace; and because the terms on which labor is employed influence
the investment and innovation decisions of business. Webster and Loundes (2002) studied
empirically the factors affecting employer-union and employer-employee cooperation in
larger Australian businesses, noting that more cooperative relations were often considered to
be conducive to higher productivity. Their statistical results included a finding that lower
union densities fewer union members relative to total staff were associated with more
cooperative relations between employers and employees.
From the 1960s onward, a different debate occurred, namely, whether better results (which
might include higher productivity) would come from collective bargaining. By the late 1980s,
there was significant support for collective bargaining at the enterprise level. This gained
momentum from both a desire of unions to be freed from some of the restraints of the Accord
and an endeavour by employer interests (especially the Business Council of Australia) to
reduce the role of arbitration (Hancock 1999). Employer groups, workplace managers, the
union movement and governments (federal and state) of both political persuasions all
endorsed the enterprise concept (Wooden, 2000). They claimed that enterprise bargaining
would stimulate greater levels of productivity, facilitating increased real wages and causing,
eventually, increased employment (Wooden 2001). Enterprise-level collective bargaining
received legislative support in the early 1990s.2
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1.2. RESEARCH PROBLEM

The organizational goal of increased profitability and productivity can only be realized in a
peaceful industrial environment, hence the need to ensure good labour management relations
in any work organization. Employees adopt and adhere to rules and conditions of
employment that respect workers and at a minimum safeguard their rights under national and
International labour and social security laws and regularities. MPVL can improve its
production and profitability by effectively implementing the industrial relations in their
organisation.

1.3. OBJECTIVES OF STUDY

The objectives of the study are as follows:

To observe the industrial relation operations and satisfaction level of the

employees in MPVL

To study how far the industrial relation is related and its contribution towards
productivity.

To observe the working conditions of the employees in MPVL

To observe different welfare schemes provided to the employees in MPVL

To observe grievance handling procedure in MPVL

To find out the incentives/motivation needed for better productivity.

Based on the study to provide suggestions on further improving industrial relation

in MPVL to improve productivity/profitability.

To evaluate critically how labour management relations in the company could

also be improved so as to ensure their attainment of a high level of productivity

1.4. HYPOTHESIS
a. As employees are selected and appointed based on the skill, they will contribute to
the growth of the organisation leading to productivity and profitability.
b. Industrial relations contributes to productivity

1.5. SCOPE OF STUDY

The scope of IR can easily been delineated as follows:
i) Employer-employee relations i.e. relations between management and employees.
ii) The role of employers, employees, and state in maintaining industrial relations.
iii) The role of employers, employees, in improving productivity

1.6. IMPORTANCE OF STUDY

The analytical study of industrial relations is very much important and significant because of
the rapid expansion of the industry or industrialization in India. This study has also become
important because the industry has changed drastically after independence and will further
make rapid changes in the industrial relations due to globalization, privatization and
liberalisation. Industrial relations have become a major force for social and economic growth
in the country. The responsibility and accountability on employers and employees is
increasing day by day. The problem of industrial relations is becoming more complex due to
downsizing and early retirement schemes which are having a negative impact on productivity.
In order to meet these challenges there is a need for better industrial relations and such
relations can be made possible only if there is a total re-overhauling of traditional techniques
of industrial relations. The study of industrial relations is becoming important in India
because Indian economy has undergone a transformation from agrarian to industrialize and
from industrialized to hi-tech industrialization. In this scenario, manpower management and
industrial relations cannot be under estimated. Though industrial relations influence
productivity, it has far reaching impact on the economy as a whole.2
It is a general opinion that the success of any company is not only measured by the amount
of profit the company could make but also by the degree of industrial peace and harmony that
could be maintained in the said organization.6

1.7.

RESEARCH METHODOLOGY
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.
The present study will be based on primary data obtained from one-on-one personal
interviews with employees/workers and detailed questionnaires filled by employees; and
secondary data collected from journals, articles, reviews, publications and internet.
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The questionnaire is presented in ANNEXURE 1.

1.8. CHAPTERISATION
CHAPTER 1 INTRODUCTION
CHAPTER 2 LITERATURE REVIEW
CHAPTER 3 METHODOLOGY
CHAPTER 4 RESULTS AND ANALYSIS
CHAPTER 5 - DISCUSSION AND FINDINGS
CHAPTER 6 CONCLUSION AND RECOMMENDATIONS

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ANNEXURE
ANNEXURE 1 Questionnaire
Employee satisfaction in the following:
A. Professional
a. Working conditions in MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied
b. Incentives/bonus provided by MPVL
i. Yearly and regular
Regular, but not yearly
Irregular
c. Whether overtime allotment is fair at MPVL?
Satisfied
Satisfactory, but can be improved
Dissatisfied
d. Promotional opportunities available at MPVL
Regular and satisfactory
Regular, but not satisfactory
Irregular/ unsatisfied
e. Collective bargaining by employees/unions
Satisfied
Satisfactory, but can be improved
Dissatisfied
f. Implementation of various labour laws
Satisfied
Satisfactory, but can be improved
Dissatisfied
g. Insurance facilities provided to the employees due to mishaps in MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied
h. Insurance facilities provided to employees due to mishaps unrelated to
MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied
i. Transport Facilities provided to employees
Satisfied
Satisfactory, but can be improved
Dissatisfied
j. Training facilities provided for employees to further enhance skills
Satisfied
Satisfactory, but can be improved
Dissatisfied
B. General wellbeing
a. Medical facilities provided at MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied
b. Canteen facilities at MPVL

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Satisfied
Satisfactory, but can be improved
Dissatisfied
c. Drinking water facilities at MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied
d. Quarters/housing facilities provided to employees
Satisfied
Satisfactory, but can be improved
Dissatisfied
C. Miscellaneous
a. Loan facilities provided by MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied
b. Employees childrens education support like school/scholarships
Satisfied
Satisfactory, but can be improved
Dissatisfied
c. Recreation facilities
Satisfied
Satisfactory, but can be improved
Dissatisfied
d. Retirement benefits provided at MPVL
Satisfied
Satisfactory, but can be improved
Dissatisfied

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BIBLIOGRAPHY
1. Nanda N, Panda J.K. Challenges and effectiveness of industrial relation environment
in Indian industries: a study on Rourkela steel plant, Rourkela, Odisha, India.
International Journal of Marketing, Financial Services & Management Research.
2013;2:163-175.
2. Kumari P. Industrial relation a way to improve productivity. Arth Prabhand: A
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Journal of Economics and Management (APJEM). 2013;2:24-38.

www.rahulgladwin.com
www.yourarticlelibrary.com
www.mysorepaints.in
www.scribd.com
www.wikipedia.com

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