Chapter 2: Research Methodology

2.1 Introduction of Review of Literature

2.1.1 Purpose of Review of Literature

2.1.2 Sources of collection review of Literature

2.1.2.1 Primary Sources

2.1.2.2 Secondary Sources

2.1.3 Process of Review of Literature

2.1.4 Writing of Review of Literature

2.1.5 Utility of Review of Literature

2.2 Related Study of Labour Law Reforms

2.2.1 Featured articles of Labour Laws

2.3 Related study of Organizational Effectiveness

2.4 Related study of Labour Law Reforms and Organizational Effectiveness

2.5 Conclusion of Review of Literature

2.6 Introduction of Research Methodology

2.7 Research Objective

2.8 Research Design

2.9 Data Collection Method

2.10 Instruments for Data collection

2.11 Sampling Techniques

2.12 Validity and reliability of questionnaire

2.12.1 Biographical characteristic Questionnaire

2.12.1.1 Labour Laws Questionnaire
 2.12.1.2Nature and composition of Labour Laws Questionnaire
2.12.1.3Reliability and Validity result of Labour Laws Questionnaire
2.12.1.4Rationale for Inclusion
2.12.1.5Organizational Effectiveness Questionnaire
2.12.1.6 Nature and composition of Organizational Effectiveness
Questionnaire
2.12.1.7 Reliability and Validity result of Organizational Effectiveness
Questionnaire
2.12.1.8 Rationale for Inclusion
2.13 Techniques for data analysis
2.14 Conclusion
2.1 Introduction of Review of Literature

A literature review is an evaluative report of information found in the literature related to

your selected area of study. The review should describe summaries, evaluate and clarify this
literature. It should give a theoretical base for the research and help you (the author)
determine the nature of your research. Works which are irrelevant should be discarded and
those which are peripheral should be looked at critically.

A literature review is more than the search for information, and goes beyond being a
descriptive annotated bibliography. All works included in the review must be read, evaluated
and analyzed (which you would do for an annotated bibliography), but relationships between
the literature must also be identified and articulated, in relation to your field of research.

A literature review is a body of text that aims to review the critical points of current
knowledge including substantive findings as well as theoretical and methodological
contributions to a particular topic. Literature reviews are secondary sources, and as such, do
not report any new or original experimental work. Also, a literature review can be interpreted
as a review of an abstract accomplishment. Its main goal is to situate the current study within
the body of literature and to provide context for the particular reader.

A literature review is a critical and in depth evaluation of previous research. It is a summary

and synopsis of a particular area of research, allowing anybody reading the paper to establish
why you are pursuing this particular research program. A good literature review expands
upon the reasons behind selecting a particular research question. It is not a collection of
quotes and paraphrasing from other sources. A good literature review should also have some
evaluation of the quality and findings of the research.

A good literature review should avoid the temptation of impressing the importance of a
particular research program. The fact that a researcher is undertaking the research program
speaks for its importance itself

2.1.1 Purpose of Review of Literature

The context of a research paper on a thesis, the literature review provides a background to the
study being proposed. The background may consider one or more of the following aspects
depending on the research question being posed

 Theoretical background – past, present or future

 Clinical practice – previous or contemporary
 Methodology and/or research methods
 Previous findings
 Rationale and/or relevance of the current study

In a broader context the following purposes of a review:

 Distinguishing what has been done from what needs to be done;

 Discovering important variables relevant to the topic;
 Synthesizing and gaining a new perspective;
 Identifying relationships between ideas and practice;
 Establishing the context of the topic or problem;
 Rationalizing the significance of the problem;
 Enhancing and acquiring the subject vocabulary;
 Understanding the structure of the subject;
 Relating ideas and theory to applications;
 Identifying methodologies and techniques that have been used;
 Placing the research in a historical context to show familiarity with state-of-the-art
developments.

2.1.2 Sources of Collection of Review of Literature

Evaluating the credibility of sources is one of the most difficult aspects, especially with the
ease of finding information on the internet. The only real way to evaluate is through
experience, but there are a few tricks for evaluating information quickly, yet accurately.

2.1.2.1 Primary Sources

 First hand reports of research found in academic journal articles, books of collected
articles or conference papers.
  Other original materials, such as historical documents, company reports, diaries or
works of art or literature.
2.1.2.2 Secondary Sources
 Critical evaluations and syntheses of original studies
 Information and ideas often put together from secondary sources, e.g. text books that
provide a broad overview on the topic

2.1.3 Process of Review of literature

 Searching for literature

 Sorting and prioritizing the retrieved literature
 Analytical reading of papers
 Evaluative reading of papers
 Comparison across studies
 Organising the content
 Writing the review

2.1.4 Writing of Review of Literature

As with any essay, the review should have

 an introduction,
 a body,
 a conclusion

The length of each section depends on whether you are writing a brief literature review for a
research paper or a whole chapter (or more) as part of a dissertation.

The introduction should provide the reader with the scale and structure of your review. It
serves as a kind of map.

The body of the review depends on how you have organised your key points. Literature
reviews at postgraduate level should be evaluative and not merely descriptive. For example
possible reasons for similarities or differences between studies are considered rather than a
mere identification of them.
The conclusion of the review needs to sum up the main findings of your research into the
literature. The findings can be related to the aims of the study you are proposing to do. The
reader is thus provided with a coherent background to the current study.

2.1.5 Utility of Review of Literature

The Review of literature is the important because without review of literature we will not
acquire an understanding of our topic of what has already done. How it has been requested
and what the key issue are in our written project. It will be expected to show that to
understand previous research on our topic. This amount to showing that the main theories of
this subject area and how they have been applied and developed as well as the main criticism
of work on the topic . The review of literature therefore, is a part of our academic
development of becoming on expert in the field. Therefore, the review of literature provide
researcher with a set of rules, assumptions and techniques that are applicable for
understanding of work proceed in the whole range of discipline that make up the study.

2.2 Related studies of Labour Law Reforms

Literature survey indicates that there is a widespread concern at the present level of labour
laws and ongoing reforms on organizational effectiveness and productivity in the view
employees benefit of manufacturing units.

Peru-Pirotte (1996) observed that labour legislation is quickly evolving in order to take into
account the impacts of technologies on working conditions and on human resources within
firms. Traditional law, protecting the worker, is modernized in order to be more pre-occupied
by today's employer's requirements and constraints concerning the hiring, redundancy,
working hour's management and wage earners status.

However, Gill (1999) took the traditional view and observed that trade unionism is
influenced by growth of capitalism with its own specificities, the mediation of the state and
initiatives by the trade union movement. The author further argues that at the moment trade
unions are not displaying capacity to meet the challenge of attempt to review labour
legislation; therefore bold and new initiatives are needed to enable them to play their
important role for employees.
David G. (1999) examine specific provisions contained in the Health and Safety at Work Act
(the Act) 1974, the primary domestic legislation governing health and safety in the
workplace, as well as, the Management of Health and Safety at Work Regulations (MHSW)
1999. Are these statutes/regulations effective, and how have the courts Interpreted applied
them.

Sasmita palo, Nayantara pandit and Sweta pamgrahi (2000) has been reviewed the
condition of labour worldwide through its international labour standards (ILS).The term
labour standards has a descriptive as well as normative sense to it .descriptively it refer to the
actual terms of employment quality of work and wellbeing of worker at any specific time and
place, it implies the rights and responsibilities of both labour and employees. The reason is
that the present system of developing and monitoring labour standards is not only inadequate
but also fails to meet the growing regime of global trade liberalization.

Aditya Bhalta Chasjea (2000) criticizes of recent empirical research on the research on the
impact of labour regulation on industrial performance in India. It begins with the review of
earlier studies that tried to infer the effects on manufacturing employment of amendments to
the industrial dispute Act in 1976 and 1982, requiring Government permission for layoffs,
retrenchments and closures and shows that their results are ambiguous.

Ken Meyhew (2000) argues that there is still considerable divergence in labour market
processes and outcomes across countries. Important among these are what is happening to the
rights of people at work and how they should be protected. The Assessment goes on to
discuss a variety of distributional problems related to joblessness and low pay, and evaluates
policy interventions designed to tackle them.

Richard A. Epstein (2001) talk about law reforms in New Zeland , which discuss on labour
and employment law. The purpose was to persuade New Zealand political institutions to use
liberalisation of their labour laws. The explicit assumption that New Zealand should remove
most , if not all the regulations and collective bargaining from its current law .

Sandrine Cazes (2002) emphasis to employment protection legislation (i.e. the limitations
for employer to dismiss workers at will), other forms of labour market regulations are also
considered, such as the unemployment benefit systems, wage setting institutions, active
labour market policies and taxes on labour The analysis deals with enterprises and workers in
the formal sector, although the strong growth of the informal sector can be interpreted as part
of the process. Labour market regulations are introduced with the objectives of improving
workers' welfare through benefits or/and social security programmes.

In the Indian context, research conducted by Upadhyaya (2003) in Garment & Hosiery
industry of Noida points out that although The Factories Act, 1948 makes very elaborate and
unambiguous provisions regarding the minimum welfare (also health and safety) standards to
be followed, but laying down the standards alone is not enough. It is also to be ensured that
these provisions are actually implemented. He found that facilities for first aid, washing,
canteen, refreshment/tea, annual holidays, and intervals of rest were satisfactory; ambulance
and lunch room facility were found to be inadequate in terms of implementation, provisions
relating to welfare officer and storing and drying clothing were not found to be implemented
even in a single unit covered under the study, none of the selected units had any provision for
appointment on compassionate ground, majority of the respondents were working for more
than 9 hours a day (average 10 hours of working per day).

John Creedy, Melbourne (2005) examines the computation of welfare measures for use
with labour supply models. This type of model is particularly popular in behavioural micro
simulation modelling where predicted labour supply responses are calculated for policy
changes.

Milly Sil (2005) argued (especially by employers) that labour laws in India are excessively
pro-worker in the organized sector and this has led to serious rigidities that has resulted in
adverse consequences in terms of performance of this sector as well as the operation of the
labour markets. There have been recommendations by the government to reform labour laws
in India by highlighting the need for flexibility in Indian labour laws that would give
appropriate flexibility to the industry that is essential to compete in international markets.

Ahmad Ahsan (2005) study the combined economic effects of legal amendments on
different types of labor regulation (de jure) as well as of the increasing use of contract labor
(de facto) in India. Within de jure reforms, we distinguish between amendments in laws
concerning the procedures for the resolution of labour disputes, and laws concerning job
security.
John Creedy , Guyonne R.J. Kalb (2005) examines the computation of welfare measures
for use with Labour supply models. The standard method of computing compensating and
equivalent variations does not allow sufficiently for the nonlinearity of the budget constraint
in such models. An alternative method is suggested and applied to contexts in which
individuals are allowed to vary their hours continuously and to contexts where only a limited
number of discrete hours of work are available. Discrete hour‘s models have in recent years
been used in view of the substantial econometric advantages when estimating the parameters
of direct utility functions. This type of model is particularly popular in behavioural micro
simulation modelling where predicted labour supply responses are calculated for policy
changes.

Mary E. Gallagher, Baohua Dong (2006) examines the evolution of Chinese labour and
employment legislation, focusing on the initial drafting of the first National Labour Law in
1994, the subsequent changes in Chinese labour relations after the law, and the gradual build-
up to new legislation in the form of the labour contract law as well as several other proposed
future laws.

Sarbajit Chaudhuri (2006) examines the aptness of labour market reform in a developing
country. It finds that liberalization in the labour market may be desirable from the view points
of both social welfare and unemployment problem and why labour market reform should be
regarded as an integral component of the package of liberalized economic policies in the
Countries in transition.

Pierre and Scarpetta (2006) drawing from harmonized surveys of firms around the world
compared employer's responses with actual labour legislation and found that employer's
concerns about labour regulations are closely related to the relative stringency of labour laws.
Medium and large firms, as well as innovating firms, were those most negatively affected by
onerous labour regulations.

Anthony O’Donnell (2006) apparent distinction between the ‗employed‘ and the
‗unemployed‘ labour laws as an academic field in Australia in the second half of the
twentieth century could largely ignore the regulation of the unemployed. Because social
security was established as a flat-rate, needs-related payment, paid out of consolidated
revenue, eligibility was not related to prior labour force participation nor was entitlement
related to prior wages. In effect, social security appeared neither to be related to the contract
of employment nor seen as a collective ‗industrial‘ issue as it did.. The institutional forms of
the Australian welfare state established a fairly stark work-welfare divide. Wage-earners had
certain ‗welfare‘ ends (minimum income, payment for sickness) secured through the
industrial tribunals‘ determination of the living wage, and social security provisions were
established as a residual measure for those standing outside work for socially legitimate
reasons. This gave rise to a mid-century model of taxonomy and division (the wage earner,
the unemployed, etc), with each category requiring its own distinct form of intervention
(wages, welfare) and discrete regulatory domains (industrial tribunals, social security
offices).

Jan Theron (2007) identified changing patterns of production and work, a weakening
regulatory role of the national state over the socio-economic sphere and diminishing capacity
of trade unions for collective representation as major challenges to the protective function of
labour law today. Globalization, in its socio-economic, political and ideological dimensions,
is considered as a key determinant of these challenges.

Kaushik Basu (2007) Many countries have legislation which make it costly for firms to
dismiss or retrench workers. In the case of India, the Industrial Disputes Act, 1947, requires
firms that employ 50 or more workers to pay compensation to any worker who is to be
retrenched. This paper builds a theoretical model to analyze the effects of such anti-
retrenchment laws.

Sonja Fagernäs (2007) assesses the effects of industrial disputes legislation and the dispute
settlement process on informal versus formal employment in India. It uses indicators of pro-
worker court awards and court efficiency as well as amendments to the Industrial Disputes
Act (IDA) at the level of Indian states.

Bhavani and Bhanumurthy (2007) in their study observed that the economic policy reforms
of 1991 were expected to in still competitive forces in the Indian industry. They emphasized
that it is essential to revamp complex and comprehensive labour legislation to further
competition.
Papola and Pais (2007) resonates the same sentiments when they argue that reforming labour
laws has become necessary to make Indian industry efficient, cost effective & internationally
competitive in the face of globalization.

However, Lucio Baccaro (2008) concluded in his study that there has been a considerable
decline in unionization over the past two decades. Union density declined in almost all the 51
countries considered in the study. The decline was dramatic in Central and Eastern European
countries.

Sukhpal Singh (2008) This paper examine the nature and extent of practice of child labour
and the gender dimension of labour use in hybrid cottonseed farming in the state of Gujarat. it
examine the processes of seed production and labour supply chain in order to understand the
dynamics of labour supply and labour use in cotton seed production under contract.

Hina Sidhu (2008) Wage disparities among different categories of workers have widened
substantially within and across the industry groups. By establishing the linkage between
labour productivity and wage rate, it can be argued that labour productivity is an important
determinant for the wage rate. This studies related to wage structure and the factors
influencing wage rates are vital in the formulation of wage policies.

Simon Deakin (2008) Standard economic theory sees labour law as an exogenous
interference with market relations and predicts mostly negative impacts on employment and
productivity. We argue for a more nuanced theoretical position: labour law is, at least in part,
endogenous, with both the production and the application of labour law norms influenced by
national contexts, and by complementarities between the institutions of the labour market and
those of corporate governance and financial markets.

Carlo Dell’Aringa, Elena Cottini (2008) investigates the patterns of within establishment
wage inequality in four European countries (Belgium, Ireland, Italy and Spain). Using
matched employer employee data (ESES) we analyse the effects of work organization
practices, pay policies, bargaining procedures and industrial relations arrangements on the
pattern of wage differentials in the firm. The main findings suggest that employee‘s
characteristics, firm size and work organisation practices are important determinants of
within establishments wage dispersion.
Advocate Kumar (2009) observes that "it is true that existing labour laws in India cannot be
changed or removed by a flat as it could be easily done in China but the fact lies that unless
the laws are changed drastically, it would not be possible to obtain desired results. Continuing
to 'protect' a small aristocracy of industrial labour means hurting the prospects of prosperity
for the mass of India's labour. It is time to repeal this imperial legacy." Thus, reforming
labour legislation on working conditions is imperative for us in order to meet the demands of
modern industrializing society.

Deb kumar Das and Unajit Kalita (2009) attempts to address the issue of declining labour
intensity in India‗s organized manufacturing in an attempt to understand what constrains
employment generation in labour intensive sector.

Dr K K Singh (2009) focuses on awareness and implementation status of the statutory

welfare measures under the factory act 1948 and Non statutory welfare measures in A.G.I.O.
Paper & Industries Ltd. Dhekha, Bilaspur (C.G.). The area of study is A. G. I. O. Paper &
Industries Ltd. Dhekha, Bilaspur (C.G.) is only single unit of paper mill in Bilaspur District
(C.G.). 13 Officers, 174 company workers, 350 contract workers are serving in this unit.

Meenakshi Rajeev (2009) Labour management is one of the most crucial tasks of an
entrepreneur. In order to surpass the stringent labour regulations, the industry sector in India
is largely resorting t o contract labourers, who are governed by the ―Contract Labour
Regulation and Abolit ion Act of 1970‖. A primary survey carried out in Karnataka one of
the most industrially developed state in India, reveals that many of the stipulations made in
the Act to safeguard contract labourer are not followed in practice. It has also been felt by the
workers that collusive agreement between the labour inspector, the protector of law, and the
principal employer i.e., the manger or the entrepreneur (or the contractor) has aided the
violation of law. This paper discusses some of the survey findings and considers a game
theoretic model to show why it is economically optimal for an entrepreneur and a labour
inspector to collude. It also examines whether any provision of reward for the labour
inspector would help to protect the law. Though the paper is based on Indian experience, it
has relevance for a number of economies in the Asian region.
Richard Mitchell, Petra Mahy and Peter Gahan (2009) provide a broad overview of the
development of labour law in India. The Indian system of labour laws is very extensive and
dauntingly complex and is intended only to sketch out the broad parameters of Indian
government policy in the regulation of employment relationships and labour markets.

Shashank Shah (2010) Employees are the foundation for the superstructure of a corporate
organisation. Without them, the organisation would not be able to achieve its identified and
highlighted goals and objectives. While the employees are expected to do much for the
organisation for the remuneration they receive, the organisation also needs to appreciate their
honest and committed services. Employee and Labour welfare needs to be undertaken by
corporate organisations for genuine altruism and not for profit-making and goodwill building
alone.

Sean Cooney, Shelley Marshall (2010) presents some of the results of a study of the
evolution of Australian labour law over the past 40 years. It looks in particular at the
protective strength of labour law in safeguarding the interests of employees and how that has
altered over the period from 1970 to 2010. It compares Australia in that regard with the
evolution of labour laws in five other countries: France, Germany, India, the United Kingdom
and the United States. The study uses a numerical approach, which allows for a quantitative
measurement of law, legal evolution and comparative legal studies.

2.2.1 Featured articles of Labour Laws

FIEO suggests flexbility in labour laws (August 1, 2001 TOI) In order to make labour
laws more flexible, federation of Indian export organisations (FIEO) has made a series of
suggestions specific to the export sector to the second national commission on labour (NCL).
Some of the ideas, say labour unions, are so outrageous that if implemented it will lead to
unrest. FIEO has asked that exporters should be granted the prerogative for retaining the
workforce depending on their visibility in the business enterprise. The reason, says FIEO, is
that export is a dynamic business with variations in the volume of work depending on orders
received from overseas buyers.

Maharashtra's new labour laws get Centre's nod (December 21, 2001 TNN) The ruling
congress-led democratic front (DF) government's proposed modifications to the two key
labour legislations, The Industrial Disputes Act (IDA) and The Contract Labour (regulation
and abolition) Act (CLA) have been approved by the union government. With the union
cabinet giving its go-ahead, the Maharashtra Government will shortly restructure the rules for
employment, retrenchment, compensation and shut-down of unviable units. Under the
amendments to the IDA, employers will find it easier to retrench workers and also shut down
or restructure loss-making units.

Jharkhand to amend labour laws for industrial growth (November 17, 2001 Rana S
Gautam) the Jharkhand government has decided to rewrite its labour laws to facilitate
industrial growth in the state. the labour ministry has commissioned the Xavier labour
relation institute (XLRI) here to suggest amendments in the archaic Industrial Dispute Act
and the trade union act. The XLRI is expected to submit its report early next year. Another
committee of officials from the labour department has also been set up to recommend
changes in the labour laws, labour minister, Raghuwar Das, informed here on Friday.

Cong team in Bangalore today to discuss labour laws (August 17, 2001 TNN) A three
member congress parliamentary committee will arrive in Bangalore on Saturday to hold
discussions with labour minister a.m. Hindasgeri and the state party unit's labour cell on
labour laws. Shivraj Patil, Mani Shankar Aiyar and Buta Singh will interact with the minister
and labour cell functionaries on the Industrial Disputes Act and Contract Labour. "the
interaction is a follow-up to congress president Sonia Gandhi forming small committees to go
around states to elicit opinion of workers on labour laws proposed by finance minister
Yashwant Sinha in his budget speech," Hindasgeri told the Times of India on Friday.

Advani backs SSI deservation, labour law changes (August 30, 2001 TNN) Home
Minister Advani on Thursday favoured removal of small-scale industry (SSI) reservation and
relaxation of labour laws in some industries so that the country can cash in on global market
opportunities. He noted that SSIS face "severe challenges" in the changed economic
environment and with the advent of WTO; they should restructure and prepare themselves to
"face the new realities". It may be necessary to remove SSI reservations and relax labour laws
in some areas like toys, leather products and processed foods where India has a universally
recognised opportunity to expand rapidly and supply to the global market, Advani said at a
national convention on SSI here.
GoM asks secretaries to look into labour laws (October 12, 2001 TNN) As if the national
labour commission was not enough, the group of ministers (GOM) on labour has decided to
set up yet another body of group of secretaries (GOS). Worded differently, the brief of the
GOS remains the same as various issues related to labour reforms, namely amendments to the
industrial disputes act, the contract labour act and other laws coming in the way of second
generation reforms. The GOS, according to planning commission deputy chairperson K C
Pant, after fine-tuning all details will submit its recommendations to the GOM. Without
disclosing much, pant said the GOS would go into the details of new legislations in labour
sector as decided at Thursday‘s meeting.

Govt to amend 50 labour laws (November 5, 2002 PTI) NEW DELHI: Focusing on social
security and welfare for the labour in the unorganised sector, the government plans to amend
at least 50 labour laws. The government has decided to enact legislation during the Budget
Session incorporating features of welfare and security for the unorganised sector and to
amend at least 50 labour laws as there is need for change, Labour Minister Sahib Singh
Verma told reporters here on Tuesday. A two-day national seminar is being organised here on
November 7 and 8 to deliberate on these issues and all initiatives taken by the Centre for the
unorganised sector.
Govt considering changes in labour laws (June 19, 2002 PTI) JAIPUR: Union Labour
Minister Sharad Yadav on Wednesday said proposals to amend the existing labour laws were
under consideration and asserted that the interests of workers would be fully protected while
making any changes to the laws. "Changes in the existing labour laws are being discussed.
The interests of workers will be fully protected while making any such amendments," he told
reporters. Yadav said the West was wrong in its assessment about child labour in India. Child
labour is not a very big problem in India.

Firodia calls for labour law reforms (April 30, 2003 TNN) Expressing grave concern
about the holistic development of the country, city based industrialist Arun Firodia said there
is a dire need for India to make its labour laws more flexible and focus on foreign exports to
make a niche for itself in the world. Firodia was speaking on 'Who will be the winner? China
or India? Dictatorship or democracy? at the Vasant Vyakhyanmala (spring lecture series) on
Tuesday. Firodia said Pune was the only city in the world with more than a hundred thousand
skilled engineers employed in top companies.
National labour conference likely to reform laws (October 9, 2003 TNN) A major
national level Labour Conference will be held on October 16 to 18, which will take a final
decision on the three basic labour issues - rationalization of labour laws and unorganised
labour; employment generation and social security issues. Labour ministry sources told the
Times of India on Wednesday those employer organisations, workers organisations,
governments of central, state and union territories have been requested to nominate their
delegates/advisors to attend the meeting.

Haryana urges Centre to simplify labour laws (October 16, 2003 TNN) Haryana has
urged the Centre to simplify labour laws and also reduce their number and raise by three
times the amount of compensation which is given to a labourer at the time of his
retrenchment. These suggestions were made by the chief minister in his speech delivered at
the 39th Indian Labour Conference that commenced in Delhi on Thursday. Financial
commissioner and principal secretary labour and employment Prem Prashant read out the
speech as the chief minister himself could not attend the conference due to his
preoccupations.

States asked to scrap obsolete labour laws (June 3, 2003 TNN) NEW DELHI: Even as the
Centre continues to dither on relaxing labour laws, it has asked the state governments to
rationalise the laws governing employment. The Centre has also said that states should phase
out those laws which have become obsolete, remove impediments that affect full realisation
of growth prospects of an activity and relax rigidities that harm the interest of workers instead
of protecting them. Opening a conference of the state planning secretaries on employment
strategies here today, Planning Commission deputy chairman K C Pant said: "Rationalisation
of labour laws and procedural simplification in their application will improve compliance and
encourage employers to formally hire more labour.

Reform labour laws for apparel: Study, (March 19, 2004 TNN) India could emerge as hub
for apparel outsourcing but will have to undertake reforms in key areas like labour, besides
entering into bilateral trade agreements with US and European Union to become competitive,
says McKinsey. "India could be the next biggest winner after China. It could grow exports at
15-18% and reach $25-30 billion by 2013 if reforms are implemented. While some progress
has been made, key reforms are required and attracting more foreign direct investment would
require changing labour laws," McKinsey said in a report on Indian textile and apparel sector.
Amend labour laws concerning women: PM (June 23, 2006 TNN) Concerned over the
delay in amending various laws concerning women, Prime Minister Manmohan Singh has
asked labour ministry to pull up its socks. The direction came after PM reviewed the progress
made by various ministries in the last two years while addressing the issue of women's
empowerment, both social and legislative, media adviser to PM Sanjaya Baru said. "It was
noticed that one area where not much progress has been made is the labour laws, which are
waiting to be amended.

ICSI proposes to amend archaic labour laws (September 6, 2006 TNN) The Institute of
Company Secretaries of India (ICSI) has proposed the Centre to amend the archaic labour
laws in India. The institute feels that there is a need for an independent certification or audit
of the compliance level of labour laws by companies, the ICSI president H M Choraria said
in Kolkata on Wednesday. ICSI has already submitted its recommendations seeking "major
amendments" to the Union labour minis-try nearly 10 months back.

OECD asks India to liberalise labour laws (September 18, 2006 TNN) The Organisation
of Economic Cooperation and Development (OECD) on Monday suggested India to liberalise
its labour policies which it said, if not changed, would slow down the productivity. Jean-
Philippe Cotis, chief economist of OECD, at a Ficci meet said, "Labour laws, if too stringent,
raise the cost of adjusting the workforce. This may slow down the adoption of latest
technology, which requires work-place reorganisation and substantial changes in the
composition of workforce.

IMF urges India to reform labour laws (April 20, 2006 PTI )WASHINGTON: Stressing
that India is not only growing rapidly but has also taken steps to improve its infrastructure,
the International Monetary Fund (IMF) has urged for quick reform of labour laws if jobs are
to be created in labour-intensive sectors. "India, too, is growing rapidly and important steps
are being taken to improve the infrastructure. Reform of the labour laws are urgently needed
if jobs are to be created in Labor-Intensive sectors, and I note the Prime Minister supported
this today," Economic Counsellor and Director of Research Department of the IMF,
Raghuram Rajan, said yesterday.

Govt approves amendments in labour law (October 25, 2007 PTI) NEW DELHI: The
government on Thursday approved changes in a labour law exempting establishments
employing up to 40 workers from maintaining mandatory registers and submitting returns.
The government proposes to introduce a simplified form, which will give relief to employers
of such establishments who currently are required to maintain registers and submit returns
under various labour laws, Information and Broadcasting Minister Priyaranjan Dasmunsi told
reporters after a Cabinet meeting here.

For good jobs, reform labour laws (February 20, 2007 Sadiq Ahmed & Shantayanan
Devarajan) India has been remarkably successful in boosting economic growth: its economy
has grown at about 6% per annum since the 1990s, with growth accelerating to 9% over the
past two years. Absolute poverty has been cut in half and the country seems set to achieve
middle-income status soon. Among all this good news, some puzzles remain. Despite recent
growth, India's manufacturing sector still accounts for less than 15% of GDP and employs
less than 15% of the work force. This is in stark contrast to the fast-growing East Asian
countries such as Korea, China and Thailand where rapid expansion in manufacturing has
generated large scale employment that has lifted millions out of poverty.

Govt plays safe on labour laws in SEZs (April 14, 2007 TNN) The Centre has decided to
play safe on labour laws to be applied in special economic zones (SEZs), even as trade unions
propose to discuss the issue in detail at the national labour conference in Delhi later this
month. On Thursday, Union minister for labour and employment Oscar Fernandes said on the
sidelines of a Ficci programme here that existing labour laws would continue to be in force in
SEZs till new ones were formalised. The government would prefer bipartite meetings
between labour unions and SEZ developers on working out labour laws for these trade hubs,
he added.

'Implement labour laws in equitable manner' (September 28, 2010 TNN) Principal
secretary, department of labour resources, Vyasji on Monday said labour laws need to be
implemented in equitable manner as an instrument to protect the poor , weak and
marginalised sections of the society. He said the rule of labour law should prevail for
protection of working class. He was speaking at a five-day foundation course launched here
on Monday for the newly recruited labour superintendents (LS) of department of labour
resources at A N Sinha Institute of Social Studies (ANSISS)

Montek pitches for labour law reforms (January 27, 2011 TNN) Making a case for more
flexible labour laws to boost industrial growth, Planning Commission deputy chairman
Montek Singh Ahluwalia on Wednesday suggested that Indian trade unions learn from China.
Ahluwalia reopened the debate on labour law reforms on the grounds that it could accelerate
industrial growth by another 3-4%. "Manufacturing growth in India is much below what it
should be. If we can't achieve 12% growth then we would not be able to create large
employment," he said in response to a question on employment.

Govt working on streamlining labour laws: PM (October 13, 2011 PTI) Voicing serious
concern over cases of industrial unrest, Prime Minister Manmohan Singh said the
government is working on streamlining labour laws for welfare of workers and it would move
ahead only in those areas where consensus for reform is built. He underlined that healthy
worker-management relations were fundamental to industrial development and both sides
need to work in a spirit of collaboration and cooperation, without losing sight of the overall
objective of progress.

Labour laws flouted with impunity in Bhadrak Dist (June 1, 2011 TNN) In a flagrant
violation of labour laws, shops, establishments, industrial units, especially outsourced
companies, here are openly neglecting or sacking employees. The district administration is
also allegedly turning a blind eye to the exploitation. According to sources, complete
lawlessness is prevailing in many of the industrial units both in the organized and
unorganized establishments. "Many of us left the job of security guards in a leading
construction company after 11 months of rigorous duty.

Govt open to reform of old labour laws (August 20, 2011 TNN) There is a need to review
the century-old labour laws and amend them, labour department principal secretary G S
Narayanaswamy said on Friday. He was addressing participants of a conference on industrial
relations (IR), arranged by the Confederation of Indian Industry (CII) on managing industrial
relations for business prosperity. "Although, some amendments have been made, a lot more
needs to be done," Narayanaswamy said. The government is keen on initiating reforms as
demanded by several industries.

Government mulls consolidating labour laws (October 16, 2011 PTI) NEW DELHI:
With more than 40 laws governing different aspects of labour, the government is mulling
consolidating these laws into a few selected categories to reduce multiplicity and disputes in
their application. "The objective is to bring in greater compliance and improve
implementation of the laws through the process of consolidation," a Labour and Employment
Ministry official said. The implementation of the Labour Acts has led to several instances
where...

Maruti Suzuki conduct bonds violate Labour Laws ( November 29, 2011 ET Bureau)
NEW DELHI: Demand of good conduct bonds by Maruti Suzuki India management from
workers who wanted to resume work at the Manesar plant after the recent labour unrest was
an arbitrary act that amounted to unfair labour practice, the government has said. Gurudas
Dasgupta of CPI and Gopinath Munde of BJP wanted to know whether Maruti has violated
labour laws

Labour law breach highest in Kerala: Minister (January 21, 2012 TNN) Labour affairs
minister Shibu Baby John said the phenomenon of the private sector violating labour laws
was more rampant in Kerala than other states in the country. The minister said no IT
company in Kerala had ever lost a single working day due to labour unrest. But the
perception of Kerala being hostile to investment has however not changed, he added. "Of the
450 private hospitals in the state, not a single hospital fully complies with the state's labour
laws.

India ranks poorly in labour-employer relation: Morgan Stanley (August 18, 2014 PTI)
MUMBAI: India ranks poorly in employee- employer relations standing at 61st position,
which is far behind countries like Mexico, Thailand and the Philippines, according to a report
by Morgan Stanley. "On the metric of cooperation in labour-employer relations India ranks at
61, behind Mexico (44), Thailand (37) and the Philippines (34)," according to the report titled
'What's Holding Back India's Labour Market Environment? Part II' by Morgan Stanley. China
is just...

Congress makes NDA Labour Law, sets conditions to back Factory Bill (August 9, 2014
ET Bureau) NEW DELHI: Congress has decided to object to four key amendments in the
labour laws introduced by the government this week, setting the stage for another
confrontation with the ruling party. Senior Congress MPs, including Vice-president Rahul
Gandhi, met on Friday and decided the party won't support the Bills unless the government
drops these amendments which, they argue, are different from what the UPA regime had
worked on. In the Factories Law Act.
Labour Laws amendment bill likely in Rajya Sabha tomorrow (August 6, 2014 PTI)
NEW DELHI: The government is likely to introduce the bill to amend the Labour Laws
(Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments)
Act, 1988, tomorrow in Rajya Sabha. The bill seeks to allow thousands of small industries to
file just one return for compliance with 16 labour laws. The bill is listed in the Rajya Sabha
business schedule for August 7, Narendra Singh Tomar to move the Bill to amend the Labour
Laws.

Labour laws amendments CITU slams government's 'unilateralism' (August 1,

2014 PTI) NEW DELHI: A day after the Union Cabinet cleared amendments to three labour
laws, CITU today protested against the government's "unilateralism", saying it "seriously
undermines the basic principle of bipartism as well as tripartism". The Centre for Indian
Trade Unions (CITU) has urged Union Labour Minister Narendra Singh Tomar to intervene
in the matter.

Consult stakeholders before amending labour laws: Rajya Sabha members (August 5,
2014 PTI) NEW DELHI: Concern over absence of proper labour laws was voiced in the
Rajya Sabha today with members seeking consultation with stakeholders before amending
existing rules. Making a special mention on labour laws in the Upper House, A U Singh Deo
( BJD ) said there is a need to bring reforms in labour laws so as to provide ample facilities.
Congress member P Bhattacharya emphasised the need to consult stakeholders before
amending labour.

Government actively considering amendment to labour laws (July 23, 2014 PTI) NEW
DELHI: Government today said it is "actively" considering amendments to various labour
laws for which tripartite consultations are in progress. "The government is actively
considering amendments in Child Labour (Regulation and Abolition) Act 1986, Factories Act
1948, Minimum Wages Act 1948, Apprenticeship Act 1961 and Labour Laws (Exemption
from Furnishing Returns and Maintaining Registers by Certain Establishments) Act 1988.

Inflexible labour laws hinder manufacturing policy (February 13, 2014 ET Bureau)
NEW DELHI: The Congress-led United Progressive Alliance's ambitious blueprint to create
100 million jobs by 2022 through its three-year old National Manufacturing Policy is
sputtering as the government has failed to deliver on a key promise for the special investment
zones envisaged under the proposal— flexible labour laws to encourage job creation.
Congress vice president Rahul Gandhi has emphasised the creating of jobs by boosting
manufacturing and amending outdated labour laws in recent interactions with industry, party
colleagues and the electorate.

Changes made in labour laws, trade unions criticise (July 31, 2014 PTI ) NEW DELHI:
As part of labour reforms , the government has amended three archaic laws to provide for
doubling of the overtime hours from 50 per quarter and enabling women to work in night
shifts among other changes which evoked sharp criticism from labour unions. The
amendments to the Factories Act, the Apprentices Act and the Labour Laws (exemption from
furnishing returns and maintaining registers by certain establishments) Act were approved by
Cabinet last night. "The Cabinet has given its approval (for the amendments)

CII welcomes Cabinet approval to amend labour laws (July 31, 2014 PTI) NEW
DELHI: Industry body CII today welcomed the Union Cabinet's approval to amend labour
laws, including the Factories Act, to make them more compatible and beneficial for
labourers, saying the decision reflects the Narendra Modi-led government's resolve to push
reforms. "The quick action has demonstrated the government's strong commitment towards
pushing key labour reforms to encourage economic growth and generate employment
opportunities in the country," CII Director General Chandrajit Banerjee said.

2.3 Related study of Organisational Effectiveness

The literature on organizational effectiveness was reviewed to explore the various definitions
and terminology used as well as to identify the criteria, correlates theories and/or models, and
measurement/assessment methods. Organizational effectiveness is a commonly used in both
research and practice. As a research topic, Organizational effectiveness treated as the era of
scientific management, and measured as productivity and/or profit of the organization.

Another way of examining effectiveness in organization is through the system resource

model. In this model of organisational effectiveness developed by Yuchtman and Segshore
(1967) the various organisational setting was developed model ―index‖ of perceived
organisational effectiveness.
Ronan and Prein (1973) another reason is that many individuals analyzing organizational
structure have been more concerned with process than with outcomes.

Campbell (1977) develops a definition of effectiveness and to derive criteria that are
applicable across organizations and can be meaningfully placed within a general conceptual
framework. They proceeded to define Organisational Effectiveness as the extent to which an
organization as a social system, given certain resources and means, fulfils its objectives
without incapacitating its means and resources and without placing undue strain upon its
members.

Kahn (1977) commented that the suggestion to stop studying Organisational Effectiveness
was only one of vocabulary and operationalization of measurement. As a research criterion,
however, organizational effectiveness might be dropped in favour of more specific outcomes.

Pfeffer and Salancik (1978) another perspective on organizational effectiveness focuses on

constituent definitions of effectiveness, and proposes that the criterion of organizational
effectiveness should include measures relevant to employees and to management.

Levinson (1980) conceptualised effectiveness as performance of subordinate group .this

really means that the effective or good leader is someone who can persuade his subordinates
to do something.

Lawler, Nadler, and Cammann (1980) identified three levels of analysis: societal,
managerial, and individual. They advocated measurement techniques and processes as one of
three tools to design and manage effective organizations; concepts and theories and change
technologies were the other two the authors further stated that assessment methods will
depend upon the organizational context.

Maheshwari (1980) studied the decision-making styles of a dozen Indian corporation - half
in the public sector and half in the private sector—and tried to relate decision styles to
performance. organisations that employed a participatory as well as an entrepreneurial mode
of decision making were found to be performing better than those employing authoritarian
and conservative mode of decision making.
Angle and Perry (1981) In this study of organisational effectiveness, identifies employees
turnover, employee tardiness, absenteeism, operating expense and organisational adaptability
as indicators of organisational effectiveness. The study was an attempt to relate the degree of
organisational commitment of lower level employees in industry.

A critical review of the literature on organizational effectiveness shows that some previous
studies simply assert that effectiveness is improved or decreased by some degree, without
adequately detailing the source of data or identifying the cause of the effectiveness change
Bettis (1981); Weiner and Mahoney (1981) they have made little progress in estimating
socioeconomic effects. One reason for this lack of progress is that much research in this area
has been done by social scientists who are more interested in individual and psychological
factors than with economic outcomes of work.

Armandi and Mills (1982) the growing body of comparative organizational studies is guided
by a conceptual scheme that facilitates comparability among organizations with respect to
effectiveness, and that guides the empirical steps of operationalization and quantification.

Cameron and Whetten (1983) observed that often, terms are substituted for effectiveness
such as performance, success, ability, efficiency, improvement, productivity, or
accountability, but some measure of effectiveness is usually what is required. Moreover, the
terms being substituted for effectiveness are seldom any more precisely defined than is
effectiveness. The authors also proposed that Organisational Effectiveness is not a concept
but rather a construct, with the difference being that a ―concept can be defined and exactly
specified by observing objective events Organisational Effectiveness does not fit that
description. The authors remarked on how other authors have used productivity as an
indicator of Organisational Effectiveness even though productivity is a concept while
Organisational Effectiveness is not.

Gaertner and Ramnarayan (1983) defined effectiveness as the ability of an organization to

account successfully for its outputs and operations to its various internal and external
constituencies. A multidimensional framework was proposed that resulted in four approaches
to Organisational Effectiveness (1) general outcomes, (2) organization-specific outcomes, (3)
general process/structure, and (4) organization-specific process/structure.
Pratzner (1984) points to the diversity of criteria which used to access organisational
effectiveness in the work place effectiveness has been compared with behavioural factors
such as disruption, absenteeism, turnover and retentions.

Khandwalla (1992) three major approaches to Organisational effectiveness got developed in

the West, namely Organisation development (OD), socio-technical systems, and human
relations. They integrate high organisational performance with the well-being of the
employees.

The Competing Values Framework O’Neill & Quinn (1993) is another integration of other
models: Internal Process Model, Open Systems Model, Rational Goal Model, and Human
Relations Model. This model proposes increased effectiveness by providing multiple
strategies and options in changing situations or scenarios.

Delaney and Huselid (1996) studied the association between human resource activities,
including training and staffing selectivity, and firm performance in 590 non-profit and for-
profit firms using the National Organizations effectiveness Survey.

Koys (2001) used this reference as an illustration of the relationship between human resource
activities and Organisational Effectiveness, which assumes firm performance, is
interchangeable with Organisational Effectiveness. Other terms that Koys used
interchangeably with Organisational Effectiveness included organizational outcomes,
organizational performance, and business outcomes. The study involved employee attitudes
and behaviours (using satisfaction, occupational citizenship behaviours, and turnover) and
whether or not they influence business outcomes or vice versa in a restaurant chain. The
result indicated that human resource outcomes influenced the business outcomes and not the
other way around.

Walton and Dawson (2001) studied managerial perceptions and criteria for Organisational
Effectiveness and how similar they were to academics‘ perceptions and the competing values
model. Managerial criteria included profit, value of human resources, quality, and
productivity. Academician criteria included a stronger emphasis on conflict/cohesion.
Executives valued the dimensions of ease of control and measurement; academics valued the
dimension of focus.
Kathryn A. Baker and Kristi M. Branch (2002) provides a very brief description of the
major concepts and trends in the organization effectiveness highlighting the seminal works
and key contributors in these fields of research. The interplay among individuals and theories
about how individuals behave and are influenced organizations.

McCann (2004) reviewed the role of general systems theory in the history of Organisational
Effectiveness and proposed that there is a gap between current practice and emerging needs
in the area of Organisational Effectiveness especially with regards to change. The author
urged investing in ―adaptive capacity‖—the dimensions of organizational agility and
organizational resiliency—to better deal with dynamic organizational life.

Henry Ongori (2007) Employee turnover‖ as a term is widely used in business circles.
Although several studies have been conducted on this topic, most of the researchers focus on
the causes of employee turnover but little has been done on the examining the sources of
employee turnover, effects and advising various strategies which can be used by managers in
various organisations to ensure that there is employee continuity in their organisations to
enhance organizational competitiveness. This paper examines the sources of employee
turnover, effects and forwards some strategies on how to minimize employee turnover in
organisations.

Bruce E. Kaufman (2010) identifies the core principle that forms the theoretical and policy
foundation for the field of industrial relations—labour is embodied in human beings and is
not a commodity—and argues that the field‘s two central dependent variables are labour
problems and the employment relationship. Next, he uses this core principle, along with
complementary ideas from institutional economics, to develop a theoretical framework that
not only explains the nature of the employment relationship and labour problems but also
reveals shortcomings in related theories from labor economics and human resource
management.

Wan-Jing (2010) examined the impact of human resource (HR) capabilities on internal
customer satisfaction and organisational effectiveness. HR capabilities appear to be linked to
internal customer satisfaction and organisational effectiveness. The implications for
practitioners were to modify and emphasise certain HR practices, and to emphasise the role
of internal customers for organisational effectiveness enhancement. These findings revealed
the importance of internal customers in enhancing employee morale, organisational
commitment, employee productivity, turnover rate and the organisation‘s ability to attract
talent.

2.4 Related study of Labour law Reforms and Organizational Effectiveness

Debroy (2001) stated that, the main accusation against the labour laws is that in the absence
of flexible labour markets in the organized sector growth in output is not leading to a
proportionate growth in employment hence the employers are going for more capital
intensive production processes because of labour becoming a fixed input. Hence though the
labour laws are meant to protect the jobs of the workers, the scope for creation of more job
opportunities in future is being lost. Therefore India‘s comparative advantage of enormous
labour abundance is not being adequately utilized because of the high wage lands created by
the labour legislation in the organized sector.

Datta (2001), he points out the fact that in Mumbai since the Mathadis did not have an
employer and because their work did not fall under any ‗Scheduled Employment‘, they were
bereft of the benefits of the Minimum Wages Act. Another important issue is the enforcement
of labour laws which is of particular concern. So any alternative framing of labour laws need
to reconsider and assess these aspects before moving forward with the conception of ‗rigid
labour laws and its hindrance to employment growth‘.

S.K. Srivastava (2004) sees the effect of welfare activities/facilities on job satisfaction and
attitude of workers towards management amongst the workers of private and public sectors.
If the management goes on working for welfare of labourers, the labourers feel satisfaction
with their job and they get the motivation towards their work.

Jeffrey Charles Cain (2006) The United States Federal government is currently moving
from a rigid civil service system to one that features flexibility in performance management
and compensation. These revolutionary changes in Federal personnel management seek to
better align the workforce‘s efforts to the mission and goals of the agency. This study seeks
to determine whether these reforms have shown to significantly improve organizational
effectiveness in the Federal government. Accordingly, this study builds on existing models of
governmental organizational effectiveness and evaluates whether human resource
management reform is significantly associated with organizational effectiveness.

According to Dr. Rangarajan (2006) in order to achieve faster growth rate emphasis should
be laid on labour intensive sectors by skill development of the labour force and flexibility of
labour laws. He also stressed on the fact that flexibility is not just related to ‗hire and fire
strategy‘ and that business units will have to function under legitimate restrictions.

Bhattacharya (2006) however, has a different opinion. In his article on the review of papers
relating labour relation to industrial performance, he criticizes two approaches to understand
the effect of amendments of the ID Act (1947) on manufacturing performance, the first
approach gives conflicting results and the second approach which studied the variations in the
state level amendments to the ID Act was based on a ‗flawed‘ index of regulation. But still he
advocates for reforming labour laws by rationalizing them, avoiding inconsistencies and
making compliance less arduous. He also raises an important point and saying that whether
reforming labour laws would make any difference to the national employment situation in
spite of labour flexibility creating employment in this small portion of the sector.

Nikolas Theodore (2007) New Labour has placed great faith in active labour market
policies to address problems of long-term unemployment and poverty. This paper considers
the effectiveness of welfare-to-work programmes in light of persistent regional employment
disparities within the UK. It is argued that the government has proceeded from a flawed
analysis of the causes and magnitude of long-term unemployment, framing the issue in terms
of worklessness and neglecting demand-side concerns of job availability and job quality.

Mohammad Amin (2008) a new dataset of 1,948 retail stores in India shows that 27% of the
stores find labor regulations as a problem for their business. Using these data, we analyze the
effect labour regulations on employment at the store level. We find that flexible labour
regulations have a strong positive effect on job creation. Our estimates show that labour
reforms are likely to increase employment by 22% of the current level for an average store.
We also address the issue of informality in India‘s retail sector. Our findings suggest that
more flexible labour laws can encourage firms to operate in the more efficient formal retail
sector. According to our estimates, labour reforms could reduce the level of informality by as
much as 33%.
Servaas storm and C.W.M Naasteped (2009) this literature reviews the impact of industrial
relation system on productivity growth and analysis the variation in labour market regulation
in twenty OECD countries in the period 1984-2004. The productivity impact of labour market
deregulation is ambiguous on the one hand, deregulation reduces labour adjustment costs,
which possibility affects productivity, but on the other hand deregulation may reduce worker
motivation and commitment and labour saving technological progress.

By David G. Epstein (2012) the effectiveness of the United Kingdom's health and safety
legislation relies on three principal mechanisms, an enforcement agency, employee
involvement, and self-regulation on the part of employers. But are these tools effective in
terms of reducing workplace injuries and making the workplace safer. This paper will
examine specific provisions contained in the Health and Safety in the workplace.

2.5 Conclusion of Review of Literature

It is commonly held belief that labour law Reforms encourage organizational success. A
large amount of studies have been seen that effective labour law reforms are important to
promoting organizational productivity. Aditya Bhalta, Chasjea (2000) and Upadhyaya (2003)
reviewed the impact of labour regulations on industrial performance. Sandrine Cazes, (2002)
John Creedy and Melboure (2005) emphasize to employment protection legislation and other
market regulations which considered for improving workers welfare. Sarabajit Coudhary
(2006), Jan Theron (2007) and Papola Pais (2007) observed that labour law reforms have
become necessary to make industry efficient, cost effective and internationally competitive.
However, Many other studies like Richard Michell, Peter Mahy and Peter Gahan (2009)
provide board overview of the development of labour law in India.
Many Featured articles has been published in news papers time to time focusing about the
news related to existing labour laws and their important amendments declared by
government.

The study related to organizational effectiveness also explored various view of organizational
productivity and its performance. Campbell (1977) and Ronan and Prein (1973) define
organizational effectiveness as a social system which concern with process and its outcomes.
Later on Angle and Perry (1981), Cameron and Whetten (1983) identifies employees
productivity indicates the organizational effectiveness. Delaney and Huselid (1996) , Koys
(2001) and Wan- Jing (2010) studied the association between human resource activities and
organizational effectiveness. All these studies stated above examined the labour law and
organizational effectiveness separately but a number of studies also describe the relationship
between labour law reforms and organizational effectiveness. Debroy (2001) stated that
labour laws are meant to protect the job of workers with greater utilization. S K Srivastava
(2004) and David G Epstein (2012) identify the effect of welfare, Safety legislation of job
satisfaction and attitude of workers. Nikolas Theodore (2007) explained the labour law
reform in terms of job availability and job quality.

2.6 Introduction to Research Methodology

Research in common parlance refers to a search for knowledge. It can also be defined as
research as a scientific and systematic search for pertinent information on a specific topic. It
is an art of scientific investigation. Research is an academic activity and as such the term
should be used in a technical sense. According to Clifford Woody research comprises
defining and redefining problems, formulating hypothesis or suggested solutions; collecting,
organising and evaluating data; making deductions and reaching conclusions; and at last
carefully testing the conclusions to determine whether they fit the formulating hypothesis.

This chapter provides an outline of the research methodology employed in investigation of

the relationship between labour law reforms and organisational effectiveness in the
employees of manufacturing units of Greater Noida. The selection of the sample, measuring
instruments, procedure for data collection and the statistical techniques utilised relating to the
research.

2.7 Research Objectives

The purpose of the present study is to describe, analyze, and understand the impact for
reforming labour legislation on organisational Effectiveness. More specifically, the study
aims to achieve the following objectives:
  The main objective of the research is to study the various labour law reforms in the
organization.
 To examine the current trends in labour jurisprudence in India
 To assessing the impact of labour law reforms on organisational effectiveness.
 The identify the underlying factors affecting organisational effectiveness
 To identify the opinion of employees about the labour law reforms.
 To find out the relation between labour law reforms and organisational effectiveness.
 To Develop and standardise questionnaire to measure labour law reforms and
organisational effectiveness.
 To evaluate the difference in organisational effectiveness among different age group.
 To understand the nature of employment and tenure of service to measure the
organisational effectiveness.
 To evaluate the job satisfaction and motivation level among the employees.
 To assessing the labour management relation within the organisation.
 To evaluate the employees productivity and employees retention to enhance the
organisation effectiveness.

2.8 Research Design

The Research Design embodies the blue print for the collection, measurement and analysis of
data related to the research questions. This is an empirical study for which both descriptive
and exploratory research methodology was followed having qualitative and quantitative
approach. The purpose of this study was to identify relations between labour law reforms and
organisational effectiveness.

The study used both the quantitative and qualitative research approach. The qualitative
method was used because it made it possible to answer to the questions of why, how and in
what way. It also applied because an interview was conducted with the employees of
manufacturing units to identify the impact of labour law reforms on organisational
effectiveness. On the other hand quantitative approach was also equally important as
questionnaires and surveys were used to collect the numerical or measurable data from
employees.

2.9 Data Collection Method

The data used for this study was obtained from different sources. This ranged from
questionnaires, personal interviews, observations and library search. However, this study
involves use of questionnaires and schedules of interviews which were applied in obtaining
information related to various labour laws and organisational effectiveness from employees
in selected manufacturing units of Greater Noida. The data generated for the study comprise
secondary (desk survey) and primary sources (company survey).

Primary data are those obtained directly from the originators or main source. The aim of
collecting them is to obtain first hand information about the labour laws applied in industries
in proper manner and its impact on organisational effectiveness. The bulk of the primary data
were obtained through interviews and questionnaires designed via use of information
generated from secondary survey (desk survey) after taking due cognizance of the purpose
and objectives of the study.

I. Questionnaires: There were two major questionnaires formed, one related to

labour laws and other related to organisational effectiveness. The data required
for this study were collected through actual visits and face- to-face distribution &
administration of questionnaires from the four hundred (400) respondents of the
four selected industries of greater noida.
II. Face to face Interview: A structured face to face interview was conducted from
employees of different departments of each industries to know their responses. For
instance in a situation where the question administered through the questionnaire
requires to be clarified or elaborated to the employees, were conducted.

The Secondary data collected from Internet, textbooks, government publications,

unpublished research work and journals. Also, acknowledge authorities within the area of
studies provided valuable materials for this study. The following locations were made use of
in this study like libraries, archives, government departments and Internet.

2.10 Instrument for Data Collection

The main data collection instrument employed in this study was two questionnaires which
include number of relevant question related to the study. The questionnaire design included
close ended questions and asks to fill appropriate choice according to them. The questions
were clear, simple and structured in a manner void of any ambiguity and technical details.
Thus, most of the questions simply required respondents to tick against the appropriate
response The both questionnaire was drawn to elicit information/data and consisted of two
sections , The first section pertained to personal data; age, sex, level of education, and work
experience and nature of job and second section which was the core of this study dealt with.
on labour laws (related to wage and compensation , industrial relations , social security and
welfare) and organisational effectiveness ( labour management relations, Job Satisfaction &
Motivation, employee productivity , employee retentions ) under study. The research
population for this study is made 400 employees various departments of selected industries in
Greater Noida

2.11 Sampling Techniques

The population considered in this study consists of manufacturing units of Greater Noida. A
non-probability sampling design was used, based on the method of convenience. Non-
probability sampling does not involve elements of randomisation and not each potential
respondent has an equal chance of participating in the research. Some of the advantages of
utilising a non-probability sample lie in the fact that it is cost-effective and less time
consuming. However, its associated shortcomings relate to its restricted generalisability,
particularly in lieu of the higher chances of sampling errors (Sekaran, 2003). However, to
overcome restrictions with respect to generalisability, Sekaran (2003) maintains that it is
advisable to use larger samples.

2.12 Validity and Reliability of Questionnaire

Validity means ability of the research method to find accurate reality. If the research is said to
be valid then it really means that what was intended to be measured has been measured
accurately. Validity is quite important if the study was based on descriptive and exploratory.

Reliability means to measure consistency in producing similar results on different but

comparable occasions. If research is said to be reliable that means if it is replicated, similar or
identical results will be shown. If researchers know that their research is reliable then there is
less risk of their taking a chance pattern or trend exhibited by their sample and using it to
make assumptions about the sample.

2.12.1 Biographical characteristic Questionnaire

A biographical questionnaire was complied information on respondent gender, age,

qualification, year of service, nature of job with designation and department. The data with
respect to these biographical questions were subsequently graphically presented and
discussed to provide an indication of the most salient findings with respect to these variables.

2.12.1.1 Labour Laws Questionnaire

2.12.1.2 Nature and composition of Labour Laws Questionnaire

The Labour Law Questionnaire was designed on close ended questions to measures various
labour laws applicable in manufacturing units and its reforms at time to time. The LLQ was
based on the basis of 5 scale parameter (Strongly Agree, Agree, Neutral, Disagree and
Strongly Disagree)and consists of 33 questions which was categorised in to four headings of
labour laws. The first heading was related to the laws applicable to employment Acts under
which 3 categories of job (permanent, contractual and apprentices ) was asked by employees
the second Section was based on wage and compensation laws which consist 6 question
under 5 Acts (The Payment of Wages Act, 1936, The Minimum Wages Act, 1948, The
workmen Compensation Act, 1923, The Employee Provident Fund Act, 1952, The Payment
of Bonus Act, 1965 ) , the another heading defined laws related to Social Security and
Welfare laws (The Factories Act, 1947, The Employee State Insurance Act (ESI), 1948, The
Maternity Benefits Act, 1961) which covered 20 questions under Health ,Welfare and Safety .
The last section consist 5 questions under Industrial relation labour laws (The Trade Union
Act, 1926, Industrial employment standing order Act, 1946, The Industrial Dispute Act,
1947). The LLQ provides complete details about labour laws and its reforms with choice of
answers.
 2.12.1.3 Reliability and Validity result of Labour Laws Questionnaire

Scale: All variables (WC1i, WC1ii, WC2, WC3, WC4, WC5)

Table No 4

Labor Laws related to Wages and Compensation Acts

S. No. No of Items (6) Cronbach's Alpha Result
1. 1 There is a provision of timely payment of
wages without any delay.
2. Any unauthorized deduction is not made in
.757
your wages
3. Are you satisfied with your wages and over
time, which has been fixed according to the
Minimum Wages Rate
4. In case of any injury at work place, proper
compensation according to the calculation
of workman compensation act is paid-
Partial Disablement, Total Disablement,
Occupational Diseases, Personal injury
5. Some part of your salary is deducted
monthly as contribution to EPF
6. Do you avail the benefits of bonus as per
prescribed guidelines of the act?

Scale: All Variables (SSW1ia, SSW1ib, SSW1ic, SSW1id, SSW1ie, SSW1iia, SSW1iib, SSW1iic,
SSW1iid, SSW1iie, SSW1iif, SSW1iig, SSW1iiia, SSW1iiib, SSW1iiic, SSW1iiid, SSW1iiie,
SSW1iv, SSW1v, SSW1vi, SSW2, SSW3)

Table No 5

Labor laws related to Labour Welfare Provisions Acts

S. No. No of Items (22) Cronbach's Alpha Result
1. Health Provisions – i
a) There is proper Cleanliness and disposal
of wastes and effluents.
.891
b) Ventilation & reasonable temperature is
maintained.
c) Dust, fume and artificial humidification
are controlled at permissible level.
d) Overcrowding is avoided.
e) Adequate lighting , Drinking water,
Latrines, Urinals & Spittoons is Provided
Safety Provisions – ii
a) All machines are properly fenced to
protect workers when machinery is in
motion.
 b) Hoists and lifts are in good condition and
tested periodically.
c) Floor, stairs and means of access are
sound construction.
d) Safety appliances for eyes, dangerous
dusts, gas, and fumes are provided.
e) Adequate firefighting equipments are
available.
f) Safety officer is appointed.
Welfare Provisions- iii
a) Adequate facilities for washing, sitting,
storing clothes when not worn during
working hours.
b) If you have to work in standing position,
sitting arrangement are provided to take
short rests.
c) Adequate First aid boxes and ambulance
are available.
d) Facilities of canteen , rest rooms and
crèches are provided.
e) Welfare officer is appointed.
2. Holiday‘s facility- once in a week.
3. Displaying of notices regarding working hours (9
Hours per day and 48 hours per week)
4. Proper Leave Entitlement
5. Facilities available under ESI regarding Sickness
benefit, Medical Benefit, Dependent Benefit,
Funeral Benefit
6. Proper Maternity Benefit with wages

Scale: All Variables (IR1i IR1ii IR2 IR3i IR3ii)

Table No 6

Labour laws related to Industrial Dispute and Industrial Relations Acts

S. No. No of Items (5) Cronbach's Alpha Result

1. Trade Union helps in regulating the

relations between Labor & management
2. Trade Unions represent its workers in case .847
of negotiation and collective bargaining.
3. The existing settlement machinery works
properly to handle disputes
4. In case of any injury at work place, proper
compensation according to the calculation
of workman compensation act is paid-
Partial Disablement, Total Disablement,
Occupational Diseases, Personal injury
 5. There is a freedom of handling the disputes
through external settlement machinery like
Conciliation, Labor Court, Industrial and
National Tribunals etc.
According to Sekaran (2003), reliability refers to whether an instrument is consistent, stable
and free from error, despite fluctuations in test taker, administrator or conditions under which
the test is administered and Validity attests to whether an instrument measures what it is
supposed to and is justified by the evidence. Essentially, it entails the extent to which an
instrument actually measures the aspects that it was intended to measure.
The Labour law questionnaire defines under various labels. The first label related to Wage
and Compensation laws and reliability estimates (r= .757). The label which is based on Social
security and welfare Laws and reliability estimates (r= .891). The last label present laws
related Industrial Relation and reliability shows (r=.847).

2.12.1.4 Rationale for Inclusion

The LLQ has demonstrated reliability, validity and is based on a facet as well as labels rating
of Various Laws in which it is reported that the LLQ has been standardized and found
suitable for use in the study.

2.12.1.5 Organizational Effectiveness Questionnaire

2.12.1.6 Nature and composition of Organizational Effectiveness Questionnaire

The Organizational Effectiveness Questionnaire was also designed on close ended questions
to measures various factor applicable to identify the effectiveness of employees in
organisation. The OEQ provides 5 scale parameter (Strongly Agree, Agree, Neutral, Disagree
and Strongly Disagree) and consists of total 16 questions which was categorised in to four
headings to judge the Organisational effectiveness. The first heading was related to Labour
Management Relations with Organisational effectiveness under which 4 questions on
Decision Making , Trade Union Activity, Proper settlement machinery and Transparency in
the system was asked to the employees, the second Section was based on Job Satisfaction,
Motivation with Organizational Effectiveness which also consist 4 question related to Pay
Structure and promotion policy, Freedom of Job, nature of work and Proper communication
system available in the organisation. The another heading defined Employee Productivity
with Organizational Effectiveness which again covered 4 questions based on Regular training
and development activities, Clarity of goals, superior subordinate relationship and
progressive work culture . The last section Employee Retention with Organizational
Effectiveness was covered 4 questions based on Proper Leadership support, Job security,
Proper recognition and opportunity to balance personal and professional life. The OEQ
provides complete details about Organisational Effectiveness with choice of answers.

2.12.1.7 Reliability and Validity result of Organizational Effectiveness Questionnaire

Scale: ALL VARIABLES (LMR1, LMR2, LMR3, LMR4)

Table No 7

Labour Management Relations with Organizational Effectiveness

S. No. No of Items (4) Cronbach's Alpha Result

1. There is participation in decision making
process with management
2. Trade Unions raise their voice in decision .814
affecting workers
3. There is proper settlement machinery to
resolve disputes.
4. There is transparency in terms of dealing
with employees.

Scale: ALL VARIABLES (JSM1, JSM2, JSM3, JSM4 )

Table 8

Job Satisfaction, Motivation with Organizational Effectiveness

S. No. No of Items (4) Cronbach's Alpha Result
1. There is fair pay structure and promotion
policy in your organization.
2. There is a freedom to perform job .776
responsibilities
3. The nature of work assigned is known to
you.
4. There is proper communication and
coordination among employees.

Scale: ALL VARIABLES (EP1, EP2, EP3, EP4 )

Table No 9

Employee Productivity with Organizational Effectiveness

S. No. No of Items (4) Cronbach's Alpha Result
 1. Regular training and development activities
are conducted in your organization.
2. Clarity of goals to be achieved .862
3. Relationship with superiors/subordinate is
good.
4. Progressive organization culture and
climate.
Scale: ALL VARIABLES (ER1 ER2 ER3 ER4)
Table No 10

Employee Retention with Organizational Effectiveness

S. No. No of Items (4) Cronbach's Alpha Result
1. Proper leadership and guidance from your
superior.
2. There is a job security in your organization.
.786
3. There is a proper recognition &
appreciation for your performance
4. The job gives you opportunity to balance
personal and professional life

The OEQ has been correlated with other affective measures and score positively in terms of
reliability and validity of all factors. The first label related to Labour management relations
with Organizational Effectiveness and reliability estimates (r= .814). The second label which
is based on Job Satisfaction, Motivation with Organizational Effectiveness and reliability
estimates (r= .776). The third label present Employee Productivity with Organizational
Effectiveness and reliability shows (r= .862). The last label related to Employee Retention
with Organizational Effectiveness and reliability shows (r= .786).

2.12.1.8 Rationale for Inclusion

The rationale for the use of the OEQ is that it is a reliable and valid instrument for the
measurement of organisational Effectiveness, and it is standardized for the study.

2.13 Techniques for data analysis

This study was based on descriptive and exploratory research methodology. The Likert-Scale
was used to analyse data for classifying and summarising after ensuring that they were
carefully collated. For the purpose of testing hypothesis a number of statistical techniques
were used .The mean and standard deviation was also used to describe the data obtained from
both the questionnaire. The results of the biographical questions was based on the frequencies
and percentages obtained based on the sample characteristics.

Inferential statistics allow the researcher to present the data obtained in research in statistical
format to facilitate the identification of important patterns and to make data analysis more
meaningful. According to Sekaran (2003), inferential statistics is employed when
generalisations from a sample to population are made. The statistical methods used in this
research were Pearson Product Moment Correlation Coefficient method for the purpose
determining the significant relationship exists between Labour Law Reforms and
Organisational Effectiveness. The analysis was performed by using SPSS (Statistical
Package for the Social Sciences) ver. 17. This statistical method provides an index of the
strength, magnitude and direction of the relationship between Labour Law Reforms and
Organisational Effectiveness. The Pearson Product Moment Correlation Coefficient is,
therefore, suitable for the purposes of the study since the study attempted to describe the
relationship between both variables.

2.14 Conclusion

The research methodology utilized in the present study was addressed in this chapter. More
specifically, the selection of the sample, the measuring instruments used and the rationale for
their inclusion, as well as the statistical methods employed in testing the research hypotheses
were discussed.