Avs Project

“A STUDY TO FIND OUT THE ROLE AND RELEVANCE OF TRADE

UNION AND ITS IMPACT ON EMPLOYEES”

PROJECT REPORT

Submitted to

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfillment of the requirement for the award

Of

MASTERS DEGREE IN HUMAN RESOURCE MANAGEMENT

(2010-12) By

PRINCY C A

Reg No – h826

Rajagiri College of Social SciencesRajagiri P. O. Kochi – 683401

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DECLARATION

I, Princy C A, student of Rajagiri Centre for Business Studies, Kochi, hereby declare that this

report titled “A study to find out the role and relevance of trade union and its impact on

employees” is an original work done by me and submitted to Rajagiri Centre for Business

Studies in partial fulfillment of the requirement for the award of Masters in Human Resource

Management. I further declare that any part this project itself has not been submitted elsewhere

for award of any degree.

Place: Cochin Princy C A

Date: Rajagiri Centre for Business Studies

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ACKNOWLEDGEMENT

The gratification and elation of this project will be incomplete without mentioning all the

people who help me to make it possible, whose guidance and encouragement were

valuable to me.

Above all I thank the God Almighty for his immense grace and blessings at each and every

stage of the project.

I am greatly indebted to Dr. Joseph I. Injodey, the Principal, Rajagiri Centre for Business

Studies, for his encouragement, guidance and assistance in availing this opportunity for

doing a dissertation project.

I gratefully acknowledge my sincere gratitude to Prof. Anil Kumar for his kind guidance

and helpful suggestions at every stage of the preparation of this report.

I would also like to thank all those persons who have spent their valuable time to contribute the

required information to me and gave me support while preparing this report.

Last but not least, I would like to record my deepest sense of gratitude to my dearest

friends who helped me for making this project a success.

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TABLE OF CONTENTS

INTRODUCTION........................................................................................................................ 5

INDUSTRY AND COMPANY PROFILE……………………………………………….…….7

LITERATURE REVIEW.........................................................................................................27

RESEARCH METHODOLOGY.............................................................................................. .34

DATA ANALYSIS AND INTERPRETATION ......................................................................39

FINDING, SUGGESTIONS AND CONCLUSION........................................................ …………63

BIBLIOGRAPHY..................................................................................................................... 67

APPENDIX.............................................................................................................................

69

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CHAPTER 1

INTRODUCTION

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INTRODUCTION

1.1Background of the Study

Healthy Industrial Relations between labour and management are essential to achieve industrial

peace and higher productivity. It ensures continuity of production, reduces industrial disputes, improves

employee morale, and reduces wastage. HRD approach to industrial relation focuses on counseling,

mentoring, coaching etc. The study was made on one of the important constituent of Industrial Relations

ie, Trade union. As the phase of Industrial Relations is changing, the role of Trade Union is also changing.

1.2 Background of the topic

The study was conducted at Kottakal Arya Vaidya Sala(AVS) and it aimed at

understanding the role of Trade Unions on employees. The existence of a strong and

recognized trade union is a pre-requisite to industrial peace. The central function of a trade union is

to represent people at work, but they also have a wider role in protecting the interests of the

people.

1.3 Nature of the Problem

There are four Trade Unions (CITU, AITUC, BMS, and INTUC) at AVS. All workers of AVS are

the members of any of these Trade Unions. What difference or change does this Trade Union brings in the

individuals and organizational roles of workers are what are being studied under this topic

1.4 Objectives of the Study

Primary Objective:

To analyze the role and relevance of trade union and its impact on employees of AVS

Secondary Objective:

To find out whether the workers demand is accepted by management through collective bargaining

To find out whether workers demand is accepted by the management under the pressure of strike and

lockouts

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To check whether the years of experience in Trade Union leads to a good Employer-Employee

relations

CHAPTER 2

THE INDUSTRY AND COMPANY PROFILE

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INDUSTRY PROFILE

Ayurveda is an ancient health system of India, thought to have originated in the

Vedic times around 5000 years ago. Ayurvedic formulations use combinations of a selection of

around 1200 species, about 500 of which are commercially traded. Ayurveda uses medicinal

plants in various forms, some of which can be gathered only by destructive harvesting: in 30 per

cent cases only the roots are used, in another 13 per cent only the bark and it is only in about 16

per cent that the whole plant is used. In other cases, medicines use the fruits, leaves, flowers,

rhizome, seeds etc. It is commonly thought that medicinal plants are mainly herbs, but in fact

about one-third are trees—this has implications for conservation and management of supplies to

the industry. The majority of plants used in ayurveda are procured from the wild, though around

10 per cent are cultivated on private lands.

Ayurveda has a 70 per cent share in the formal medicine market in the country. There

are around 6,000 licensed units and an equal number of unlicensed units manufacturing

ayurvedic drugs. The origin of most of these companies can be traced back to a vaidya (a

practising ayurvedic expert) who used to prepare some formulations for dispensing. The gradual

acceptance of these medicines led to the growth of such units. The presence of a large number of

small, unorganised micro-manufacturing units and pharmacies makes it very difficult to estimate

the overall turnover of the industry, but rough estimates put it at around Rs. 45 billion for the

year 1998.

In general, the medicinal plants trade in India may be described as extremely

complex, secretive, traditional, badly organised, highly under-estimated and unregulated. There

is no macro level information available for assessing the nature and full extent of the trade; there

are only ‘guesstimates’ based on local inventories and micro studies.

The supply channel runs from the minor to the medium to the major markets before being

exported. There is a long chain between primary collectors and end-users, and the supply

channels for each species are different, depending on availability of the individual. The demand

for ayurvedic formulations is increasing both in the domestic market as well as internationally.

According to some estimates, the domestic sales are growing at an annual rate of 20 per cent

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while the international market for medicinal plant-based products is estimated to be growing at 7

per cent per annum. However, India has a very insignificant share of the international herbal

medicine market although it is one of the biggest reservoirs of plant resources.

Given the rapidly increasing demand, there is tremendous pressure on the supply base. This has

reached crisis point for some species. It is reported that certain species of medicinal plants have

already become extinct through over-harvesting, and other species are endangered. Drug

manufacturers make use of alternative species when the ‘first choice’ is no longer available.

However, there are reports that even some of the ‘second best’ alternatives are now facing

extinction. Further, there are concerns about maintaining the quality of supplies.

There are a number of potential (and some actual) responses to this demand-supply gap. These

include substitution of raw material, import of medicinal plants, cultivation of plants by the

corporate ayurvedic industry, cultivation of plants by farmers and enhancing production from

natural habitats. In addition to these attempts to address the demand-supply crisis, there is a long-

established response, which represents an unofficial, illegal response by sections of the industry,

that is the use of adulterants. For 6 out of the 12 species selected for the study, some or the other

form of adulteration is known to occur. This poses major challenges to any market-based

intervention in the trade, as well as to any attempts to integrate traditional medicine into the

mainstream health services.

Short-term solutions to the supply crisis appear to be limited: cultivation is appropriate for only

certain species and will not, in any case, prevent collection from the wild by those who depend

on such activities for their livelihoods. Apart from shortage of supply, the industry’s primary

concern is the quality of raw material: this presents a major challenge given the prevailing

secrecy in the ayurvedic industry and the adulteration of raw material. The potential for

organisation at the community/collector level needs to be explored, as also the possibility of

ensuring better returns to primary collectors through value addition at the local levels.

Organisation and control of production may also be encouraged if consumers or retail buyers

express preference for supplies that derive from socially and environmentally sustainable

production. While it may be some time before the extent of such preferences encourages large-

scale changes in production, this paves the way for the introduction of market-based instruments

as a mechanism for meeting consumer demand while ensuring sustainable production. In order to

move towards a system of sustainable management of medicinal plants, there is a need to address

a number of issues.9

COMPANY PROFILE

Vaidyaratnam P.S Varier’s Kottakkal Arya Vaidya Sala (AVS) is a century old

Charitable Institution engaged in the practice and propagation of Ayurveda, the ancient health care

system of India. The visionary physician and philanthropist, the late Vaidyaratnam P.S. Varier,

established AVS at Kottakkal in Kerala State of India on October 12th 1902.

In 1944 Sri. P.S. Varier expired and he executed a will prior to his demise, which

converted his proprietary concern into Charitable Trust of Public in nature, to be run by a Trust

Board consisting of seven members who are related to his family and the institution.

MAJOR POINTS IN THE WILL

Earnings from ARYA VAIDYA SALA are spent on charitable causes, in the form of medical aid on

both Out Patient and In Patient basis which is about 45%.

Financial support is also provided for Ayurveda College for conducting Research, holding seminars

and training programs for publication of books, etc, which is about 10%.

Remaining funds are pooled back for the development of the institution which is about 45%.

Arya Vaidyan P. MADHAVAN VARRIER was managing trustee and he was

responsible for the introduction of many modern and scientific improvements and machinery to

facilitate large scale production and supply of medicines to cope with ever increasing demands of

thousands of patients spread all over world. For the convenience and comfortable stay of large

number of patients, he constructed nursing homes for need of the people. Presently Aryavaidyan

P.K. Warrier became the Managing Trustee on the demise of his brother P.M. Varier in 1953. He is

leading Arya Vaidya Sala for more than half a century. Dr. P.K. Warrier serves also as the Chief

Physician ably assisted by other senior and experienced physicians.AVS started essentially as a

village clinic, it has now grown into a multi-unit, multi-disciplinary and multi-crore organisation. It

has operations in different areas of Ayurvedic practice. AVS offers classical Ayurvedic medicines

and authentic Ayurvedic treatments and therapies to patients.

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AVS manages Ayurvedic Hospitals at Kottakkal, Delhi and Kochi. All classical

Ayurvedic medicines, therapies and expert medical advice are available there. AVS has two modern

medicine manufacturing units, has well equipped quality control labs, has fullfledged research

activities, publishes Ayurvedic periodicals and books, cultivates medicinal plants and conducts

educational programmes. AVS also runs a Kathakali academy where the classical theatre of

Kathakali is taught and performed.

Arya Vaidya Sala manufactures more than 500 classical formulations. The

manufacturing activity takes place at two centres, one at Kottakkal and the other at Kanjikode near

Palakkad. Both Factories operate on manufacturing license issued by the Drugs Controller of the

State and both possess GMP (Good Manufacturing Practices) certificate issued by the Government.

The important feature of the two Factories is the fact that the basic principles and practices of

medicine manufacture are still based on the specifications in the classical textbooks. At the same

time, extensive mechanisation has taken place as a necessary consequence of adapting industrial

methods. This change is essential when scaled up and bulk level production of medicines becomes

necessary.

All the processing activities are done in pharmaceutical grade stainless steel vessels.

There are several electro-mechanical equipments, which are employed for achieving efficiency in

production. Major areas where mechanisation has been incorporated are: Fire wood has completely

been replaced by boiler generated steam for boiling purpose. There is 8-tons/hr, 4-tons/hr &

3-tons/hr and 5-tons/hr & 3-tons/hr steam generating capacity at Kottakkal and Kanjikode

respectively. Major functions like disintegration, sifting, filtration, concentration, incineration,

compression, filling, blistering, packing, etc. are done with the aid of modern machineries. The

introduction of modern dosage presentation forms of tablets and capsules has also necessitated the

incorporation of modern pharmaceutical machinery like punching machine, mass mixer, granulator,

drier, blender, encapsulation equipment, blister packing machine, etc.

MISSION

At Kottakkal Arya Vaidya Sala they fully realize their responsibilities towards their employees and

customers. Their strategies and organizational goals, driven by their core values are formulated

keeping them in mind.

With efficiency and innovation as their benchmarks, they keep pushing the par of excellence in

response to their customer needs. For everything that they do is always keep the customer’s needs in 11

the mind so that they can be assured of the product quality and services, which are always the best in

the industry.

How they achieve this is though constant innovation and quest for excellence through team work and

mutual trust. Thus through thick and thin they continue to stay focused on their primary objective to

achieve cutomer value.

BOARD OF TRUST

ARYA VAIDYA SALA is run as a Charitable Trust which is run by a will which includes the

Article of Association and Memorandum of Association in the will which was made by its founder

of Kottakkal Arya Vaidya Sala, Late Sri P. S. Varrier include excellent provision for the

administration and management of ARYA VAIDYA SALA, by appointing a board of Trustees. In

the board of Trustees, five members elected from the family and the relatives itself and two are the

employee representatives, thus there are seven members in the board of trustees. At present

following are the Trustees:

Dr. P. K. Warrier Managing Trustee

Sri. P. R. Raghava Varier Trustee

Sri. C. A. Varier Trustee

Dr. P. M. Varier Trustee

Sri. N. M. Vijayan Trustee

Dr. N. S. Unnikrishnan Trustee

Dr. K. Muraleedharan Trustee

PRODUCTS:

There is a variety of Ayurvedic medicines. Arya Vaidya Sala manufactures more than 530 classical

formulations which fall in the following nine categories:

1. Arishta / Asava (Fermented formulation)

2. Bhasma (Calicinated drug)

3. Churna (Powdered herb)

4. Ghrita (Ghee based)

5. Gulika (Pill)

6. Kashaya (Decoction)

7. Leha (Electuary)

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8. Rasakriya (Collerium)

9. Taila / Kuzhampu (Oil based)

DEPARTMENTS:

Personal department

Finance and Accounts

Production department

Materials department

Marketing department

Administration department

Quality Assurance department

Hospital

Publications

Estates and gardens

Engineering

Product development department

R & D department

PERSONNEL DEPARTMENT:13

Departmental Structure:

The main responsibilities of the human resource department are recruitment, selection,

training, motivating, retirement the functional chart display Arya Vaidya Sala employee’s wages,

medical aid, security, labour, welfare, labour relation, labour documentation and labour statistics.

Functions of personnel department:

1. Manpower planning

2. Recruitment and Training

3. Collective bargaining

4. Disciplinary procedure

5. Grievances handling

6. Time office administration

The personnel department function includes a variety of activities, and key among them is

deciding what staffing needs and whether to use independent contractors or hire employees to fill

these needs, recruiting and training the best employees, ensuring they are high performers, dealing

with performance issues, and ensuring your personnel and management practices conform to various

regulations. Activities also include managing approach to employee benefits and compensation,

employee records and personnel policies. Usually small businesses (for profit or non profit) have to

carry out these activities themselves because they can’t yet afford part or full time help. However,

they should always ensure that employees have an aware of personnel policies which conform to

current regulations

MAN POWER PLANNING

Here the sales budged prepared by the market department report to production department

accordingly product plan is prepared details of the man hours required is send to the personnel

department for recruitment.

Recruitment

Depending upon types of jobs to be done the recruitment takes place; there are mainly six categories

of works:

Sanitation and housekeeping

Production workers14

Canteen boy

Attenders

Technical Workers

Clerical Staff – LD clerk, UD clerk, Section Head, Sr. Section Head

Executive Category – M1 to M6 which includes Executive officer, Asst Manager, Deputy Manager,

Manager, Sr. Manager, Chief Manager.

TRAINING AND DEVELOPMENT

After having selected the most suitable person in the organization through the application of

scientific techniques, the next important function of the personnel management is to arrange for their

training. Every year around 15% of the employees are trained by outside agency . All types of jobs

require some type of training for their efficient performance and therefore all employees, new or old

should be trained or retrained. Every new employee, regardless of his previous training, education

and experience needs to be introduced to the work-environment of his new employer and to be

taught how to perform specific tasks.

SALARY AND WAGE ADMINISTRATION

It is an administrative procedure of establishing and supervising wage levels and operations in an

organization. In most organizations, wage and salary administration is performed in the personnel

department, although larger organizations often have payroll or wage and salary administration

department. Agreed wage is determined through long term agreement between the collective

bargaining agent and the management for matters relating to improvement in service condition like

increase in increment, reduction in the time period of promotions, retirement benefits, allowances,

transfers, etc. In this concern, four unions are there all affiliated to the Central Labour Union, those

are Workers Federation (CITU), Workers Union (AITUC), Mazdoor Sangh (BMS) and Employees

Union (INTUC). These are the unions in the organization.

GRIEVANCE HANDLING

Any workman having a grievance shall first refer to his immediate supervisor. If the workman is not

satisfied by the decision, he shall give his complaint in writing to the head of the department.

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If the head of the department fails to solve the problem, it will be handed over to the general manager

and cannot redress the grievance within a week then the matter can be raised as an industrial dispute

before the district conciliation officer through his union

DISCIPLINARY PROCEEDINGS

Some of the in disciplinary conduct includes disobeying superior officer’s orders, late comings,

habitual absenteeism, and negligence in the work. Misconduct of the employee is reported to the

superior who reports to HOD, who issues a showcase notice to the concerned to reply within a

specific and after that HOD gives him a warning letter. If he is challenging then a charge sheet will

be issued with the domestic enquiry which will be conducted by enquiry officer. Based on the

evidence the enquiry officer will submit his finding to management if he is found guilty, punishment

is given.

ADMINISTRATION OF SOCIAL SECURITY SCHEMES

Social security is a very comprehensive term which includes schemes of social insurance

and social assistance, as well as some schemes of commercial insurance. Following are the

employee’s benefits paid to the workers.

Employee Provident Fund Scheme

Provident Funds and Miscellaneous Provisions Act, provides for compulsory contributory fund for

the future of an employee after his retirement or for his dependents incase of his early death.

Total PF = 24% (Which is 12% employer and 12% employee)

Employee pension fund

Employees will get back along with interest approved; Advanced payment in case of marriage,

house construction, treatment for critical illness, higher education, etc

Payment of gratuity – According to payment of gratuity act those employee who completed 5 years

of service on final succession of employment will be pay gratuity at the rate of 15 days for every

complete year of service

Employees State Insurance Corporation (ESIC) – ARYA VAIDYA SALA is exempted from this

because they have a better medical treatment than ESIS, 16.66% of salary towards medical benefits

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EMPLOYEE WELFARE ACTIVITIES

The Factories Act is a social legislation which has been enacted for occupational safety, health and

welfare of work place. This legislation is being enforced by technical officers i.e. Inspectors of

Factories, Dy. Chief Inspectors of Factories who work under the control of the Chief Inspector of

Factories and overall control of the Labour Commissioner, Government of National Capital

Territory of Delhi.

ARYA VAIDYA SALA does provide their employee with all these facilities like rest rooms,

canteen, washing place, drinking water, etc which are statutory welfare measures

ARYA VAIDYA SALA also provide them with voluntary welfare measures such as proving the

workman with uniforms, running of employee welfare co-operative society was there which

provides provisions for employees which will be reduced from the salary but due to some problems

management is not involved in its functioning.

There is also a higher purchase household item scheme for the employees

Over and above the statutory welfare that is given to the employees, they have a Employee

Welfare Society which is started 10years before. Vaidyaratnam P.S Varier’s Arya Vaidya Sala

Employee Welfare Society is registered as per Kerala Societies Act in 1999. This society is managed

by a committee constituting 5 members from the management side and 4 union leaders or

employees. Every month meeting is conducted and also every employee should contribute Rs.25 and

Rs.5 from the management every month.

Various schemes that are provided for employees under this society:

Medical & Special Medical Benefit

Educational Benefit

Funeral Benefit

Death Relief Fund

Retirement Benefit

Marriage Benefit Scheme

Composite Medical Assistance

Special Medical Benefit to Family Members

To felicitate talented children in arts and sports

FINANCE AND ACCOUNTING DEPARTMENT17

The finance and accounting departments performs all the accounting and financial activities of

organization. Functions of financial department include the finance and accounting matters like

target preparation, taxation, audit, cash disbursements, payroll etc.

Finance is the base of every concern, without it they have no stability. The main aim of

this department is maximizing the profit of the firm. They see that funds are used properly and

proper accounts are kept, which is the basic principle of accounting.

The routine functions of the department are as follows:

1) Financial Planning

The main responsibility of the chief financial officer in a large concern is to forecast the needs and

sources of finance and ensure the adequate supply cash at proper time for the smooth running of the

business. He is to see that cash inflow and outflow must be uninterrupted and continuous. For this

purpose, financial planning is necessary, i.e. he must decide the time when he needs money, the

sources of supply of money and the investment patterns so that the institution may meet its

obligations properly and maintains its goodwill in the market. The finance manager is also to see that

there is no surplus money in the business which earns nothing.

2) Raising of Necessary Funds

The second main responsibility of the finance officer is to see the nature of the need, i.e. whether

finances are required for long term or for short term. He must assess the alternative sources of supply

of finance taking into view the cost of raising funds, its effect on various concerned parties.

3) Controlling the Use of Funds

The finance manager is also responsible for the proper utilization of funds. Assets must be used

effectively so as to earn higher profits inflow and outflow of cash must be controlled in a manner so

as to meet the current as well as future obligations; unnecessary expenditure should be curtailed and

there should be left no possibility for misappropriation of money.

4) Disposition of Profits

Appropriation of profits is one of the main responsibilities of the finance manager. He is to advise to

the top executive as how much of the profits should be retained in the business as reserves for future

expansion; how much to be used in repaying the debts; and how much to be distributed to the

shareholders as dividend. On the basis of the advice given by the finance manager, the resolutions

regarding depreciations, reserves, general reserves and distribution of dividends are carried out in the

meeting of the board of directors of the institution.18

5) Other responsibilities

Over and above, the responsibilities stated above, there are certain other responsibilities of the

finance manager. These are:

a. Legal Obligation: Finance Manager is also under an obligation to consider the enterprise in the light

of its legal obligations. A host of laws, taxes and rules and regulations cover nearly every move and

policy. Good financial management helps to develop a sound legal framework

b. Responsibilities of Employees: The financial management must try to produce a healthy going

concern capable of maintaining regular employment at satisfactory rate of pay under favourable

working conditions. The long term financial interest of management, employees and owners are

common

c. Responsibilities to Customers: In order to make the payments of its customer’s bill, the effective

financial management is necessary. Sound financial management ensures the creditors continued

supply of raw material

PRODUCTION DEPARTMENT

The manufacturing activity takes place at three factories. These factories operate on manufacturing

license issued by the Drugs Controller of the state and both possess GMP (Good Manufacturing

Practices) certificate issued by the government.

The important feature of the three factories is the fact that the basic principles and practices of

medicine manufacture are still based on the specifications in the classical text books. At the same

time, extensive mechanization has taken place as a necessary consequence of adapting industrial

methods. This change is essential when scaled up and bulk level production of medicines becomes

necessary.

All the processing activities are done in pharmaceutical grade stainless steel vessels. There are

several electro mechanical equipments which are employed for achieving efficiency in production.

Major areas where mechanization has been incorporated are: Fire wood has completely been

replaced by boiler generated steam for boiling purpose.Major functions like disintegration, sifting,

filtration, concentration, incineration, compression, filling, blistering, packing, etc are done with the

aid of heavy equipments.

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The introduction of modern dosage presentation forms of tablets and capsules has also necessitated

the incorporation of modern pharmaceutical machinery like punching machine, mass mixer,

granulator, drier, blender, encapsulation equipment, blister packing machine, etc.

The factories work round the clock in three shifts. More than 600 people are engaged in

manufacturing activity including workmen, supervisors, clerical and support staffs. Every section of

the two factories is managed by qualified and trained physicians under the overall control of a

Factory Manager and Production Manager

The production activity is scheduled by the Production Planning Unit. It draws up annual / monthly /

weekly / daily production schedule by taking into account the requirement of the Factory managers

and Finance department.

Arya Vaidya Sala manufactures more than 530 classical formulations which fall in the following

nine categories:

1. Arishta / Asava (Fermented formulation)

2. 2.Bhasma (Calicinated drug

3. 3.Churna (Powdered herb)

4. 4.Ghrita (Ghee based)

5. Gulika (Pill)

6. Kashaya (Decoction)

7. Leha (Electuary)

8. Rasakriya (Collerium)

9. Taila / Kuzhampu (Oil based)

These formulations are adapted from several classical text books. Their manufacture and marketing

are licensed by the Drug Controlling Authority of the State Government. The manufacturing activity

is also granted GMP certification by the government.

The principles and methodology of medicine preparation are based on classical tenets. However

modern technological and industrial methods are adapted to possible extent. For example, basic

cooking is now done in pharmaceutical grade stainless steel vessels by using steam as the source of

heat. Vacuum evaporation is employed for concentration step. Several electro mechanical

equipments are used for size reduction of herbs, pulverization, sifting, grinding, filling and packing,

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etc. Similarly, Quality assurance procedures have also been adapted considerably from the methods

of modern chemistry and physics.

On an average, 20-30 herbs are used in the preparation of a medicine. There are rare instances when

more than a hundred herbs go into the making of a medicine. There are others which take months to

get prepared as a lot. Ayurvedic medicine manufacture the material intensive, time intensive, labour

intensive and also water intensive. They form the main cost factors.

MATERIAL DEPARTMENT

Material department occupies a crucial place at Kottakkal Arya Vaidya Sala. Kottakkal Arya Vaidya

Sala consumes 70% of the raw materials from vegetables, 20% from animals, 5% from metals and

other 5% from minerals.

The Indian System of Medicine and also the Homoeopathy system predominantly use raw materials

in most of their preparations and formulation. The credibility of these systems, thus mainly depends

upon the use of genuine raw materials in the manufacture of drugs of these systems. In all, about

1100 medicinal plants are estimated to find regular use in the Indian System of Medicine (ISM). As

a result of continuous exploitation of these plants in forests and absence of regular developmental

programs in the forestry sector, a number of species have become vulnerable to extinction due to

loss of population and also unscrupulous collection. This also leads to a gradual erosion and ultimate

loss of vulnerable genetic diversities of these economic plants in India.

The major functions of material / purchase department is as follows:

Procurement of raw materials and packing

It means the collection and store of raw materials from various sources after that it will be needed to

the production process at that time, to allow suitable quantity of items to production.

Supplier or vendor development

The purchase field of ARYA VAIDYA SALA is very wide, so there is a focus to supplier or vendor

development programs in the institution. They provide better chance for the vendor to make their

products and to evaluate the availability of raw materials to the institution. It clearly helps the

institution availability or chances of getting the materials.

Storage

For storage of all resource such as raw materials and finished goods in the organization, ARYA

VAIDYA SALA has got a large and high storage area. Finished goods have to be stored fully secure 21

all these are important function of this department.

Printing and Stationary

This department handles the purchase of printing and stationary items. These items are kept to the

suitable stores and when needed, it will be handed over to the proper departments.

Packing Materials

It does the purchase of all the packing materials from suitable source and is kept to stores and

whenever it is needed then to forward the materials to marketing department. All these activities are

clearly and carefully done by the materials or purchase department of the institution. In Ayurveda

70% of input materials is from the plant kingdom, 20% is from the animal kingdom and 5 % of

metals such as gold, silver, iron, etc and 5% of minerals such as Sulphur, Calcium Carbonate, etc.

Arya Vaidya Sala uses more than 4000 tons of raw materials (about 600 items) in a year to produce

530 formulations for the market.

QUALITY ASSURANCE DEPARTMENT

QA Department has a well-equipped laboratory and trained chemists. They carry out regular

analytical tests to ensure the quality of raw materials as well as that of finished products. Issue of

a Quality Certificate is a necessary step for accepting every item of raw materials. Standards

specified by the Bureau of Indian Standards (BIS) are generally followed in the QC Laboratory.

The QC Certificate issued by the QA Department forms an integral part of the Batch

Manufacturing Record (BMR) of every product. In the case of finished products, the

Pharmacopoeial Standards specified by the Government of India are followed. A high level

Quality Control Cell comprising senior physicians examines samples from every batch of

products

MARKETING DEPARTMENT

Arya Vaidya Sala products are marketed throughout India and to foreign countries like Malaysia and

Singapore etc. “QUALITY MEDICINES AFFORDABLE PRICE” is the policy which Arya Vaidya

Sala is following, cooperate media advertisements are done to project the institution and no product

advertisement are done so far.

Marketing is a social and managerial process by which individuals and groups obtain what they want

through creating, offering and exchanging products of value with others. Marketing plays a critical 22

role in the organizational program.

The marketing section of ARYA VAIDYA SALA is in Kottakkal itself. The finished goods, both the

manufacturing unit are stored and distributed from here. This department is mainly done in

Kottakkal store department and coordinates all the products from both the factory and in the

warehouse.

There is no separate segment for the firm’s products, as the products are Ayurvedic medicines and

all who needs them are the users. The product attracts more customers due to less chance of side

effects when compared to Allopathic medicines.

There are more than 1250 authorized agencies all over India and in foreign countries like Malaysia,

Singapore, etc where medical facilities are available to a very large number of ailing patients.

ADMINISTRATIVE DEPARTMENT

Administration is concerned with determination of policies and objectives. It is more popular in

government, military education and religious organizations. It co-ordinates finance, production and

distribution, it takes major decisions

Administration department is one of the important departments in the Arya Vaidya Sala. Senior

manager heads the department. They manage all the general activities which are helpful to smooth

flow of other department.

1) Inward and outward movement of mail

It is one of the important duties to the Administration department. They manage all the mails, which

may be inward or outward. They make a register for inward letter and one more register made for

outward letters. This register contains inward and outward number of mail, date and client name.

The industry got the permission of a Franking (Stamp with a postmark to indicate date and time of

mailing) from the postal department for government. Then the departments are using the power of

stamp press. In addition, after that they send to the mail for proper client. It is one of the major

functions done by Administration department.

2) Subscription of journals, newspaper to all departments

The institution provides journals and newspaper to each department in Arya Vaidya Sala.

3) Renewal of license

The institution provides the license to the public for the subscription of a materials and the sale of a

finished product. It is normally given for one year or any other fixed period. When the period is 23

finished at that time, it will be renewed to the accurate client with a desired fee. It is another function

of this authority.

4) Corporate advertisement

In Arya Vaidya Sala, advertisements are published in journals, newspapers, TV, internet etc. These

duties are managed by administrative department

AYURVEDA HOSPITAL

The Arya Vaidya Chikitsa Sala was constructed and established in 1924 at Kottakkal. It is a

charitable hospital where poor people are given medical treatment and food, free of cost. The

hospital is manned by qualified Ayurvedic physicians. A maternity ward with the services of

qualified nurse is also attached to the hospital and maternity cases are attended free here.

The Ayurvedic Hospital & Research Centre at Kottakkal is the main in-patient institution of Arya

Vaidya Sala. Patients from all over the world come here for getting treated for conditions like

rheumatoid arthritis, spondylitis (Inflammation of a spinal joint) and diabetes, digestive problems,

many more, or for gaining relief from diseases like cancer, AIDS and Parkinson’s or even for

general rejuvenation-detoxification programs.

The patients are accommodated in three multi-storied blocks. The treatment rooms are attached to

the staying quarters. One can get up to five treatment timings are 7 – 8 am, 8.30 – 9.30 am, 10 – 11

am, 2 – 3 pm and 3.30 – 4.30 pm. A team of physicians looks after each patient. The reputation of

the centre has increased immensely in the last two decades and advance booking of up to four to five

months is usual.

The primary feature of hospital includes the following:

160 beds for treatment of residential patients

A modern laboratory, X-ray facility and a minor surgical ward

A maternity ward attached to the hospital, providing free services to women

A Pachakarma ward that offers special and expensive treatment such as Navarakkizhi, Pizhichil,

Dhara and so on free of cost to poor patients

A clinical research ward that offers treatment to patients suffering from the peptic ulcer diseases, the

ward run under the Central Council for research in Ayurveda and expenses of the patients are met by

ARYA VAIDYA SALA

A clinical research unit that aims to develop new method and procedures for dealing with 24

debilitating ailments, such as cancer and rheumatoid arthritis

A special and separate ward to treat snake bite victims and patients suffering from other poison

related maladies

ENGINEERING DEPARTMENT

Engineering department helps to new project development, construction, building and maintenance.

Engineering Department looks after procurement, installation and maintenance of the plant and

machinery of the Factories. Under the control of Sr. Manager (Engg.), there are electrical /

mechanical / classical Engineers and a Maintenance Engineer looking after the functions of the

Department, which are manned by about 70 skilled and professionally qualified workmen.

Additionally, there is Civil Engineering Department under the control of an Executive Engineer,

which looks after the civil construction and maintenance requirements.

AYURVEDIC BOOKS AND PUBLICATION

Arya Vaidya Sala, from the very beginning was engaged in scientific publication. The publications

department brings out a number of books and other publications for professional reading as well as

medical literacy among the people.

Some of the books and publications are Ayurvedic, a quarterly journal. Ashtanga Sareeram,

Catalogues, Ayurveda charithram and tenets for a total life of nursing home with all modern

equipments and amenities and inaugurated the nursing home on the historic occasion of golden

jubilee celebration of the Arya Vaidya Sala. Aryavaidyan P. Madhava Varier lost his life in an

accident at Nagpur on 12th December 1953. On behalf of him his younger brother Dr. P.K Warier

took charge of the institution, and is the managing trustee from the past five decades.

HERBAL GARDEN

Arya Vaidya Sala is cultivating medicinal plants and herbs at Kanhirapuzha in Palakkad district,

different varieties of medicinal plants have been identified and herbarium is maintained in this herbal

garden.

NATYA SANGHAM

25

There is renowned Kathakali Academy, flourishing under the protective patronage of Arya Vaidya

Sala. Kathakali is a unique classical theatre where by PSV Natysangham has given birth to many

talented Kathakali artists and it has come to be recognized as one of the leading performing and

training centers for Kathakali

WORKERS UNION

The union began functioning in 1949. Presently there are four recognized unions generally cordial

relations exist between the management and work force, with very rare occasions for friction. In fact,

the employees play a big role in maintaining high standards, so the union has its own role in the

organization

The four recognized unions now prevailing in the organization are:

1. ARYA VAIDYA SALA Workers Federation affiliated to CITU

2. ARYA VAIDYA SALA Workers Union affiliated to AITUC

3. ARYA VAIDYA SALA Mazdoor Sangh affiliated to BMS

4. ARYA VAIDYA SALA Employees Union affiliated to INTUC

26

CHAPTER 3

REVIEW OF LITERATURE

Arya Vaidya Sala is at Kottakal. There are about 2500 employees working in the company. The study on

the role and relevance of trade union and its impact on employees is carried out in AVS. This study is

27

mainly concentrated on impact of trade union on employees. Trade union is an organization of workers

who have banded together to achieve common goals.

For collecting the data a random sample size of 100 employees was selected. Data collected with

the help of questionnaire through formal interview and observation.

TRADE UNION

The trade union Act, 1926 defines a trade union as a combination, whether temporary or

permanent, formed (i) primarily for the purpose of regulating the relation between (a) workmen and

employees or (b) between workmen and workmen, or (c) between employers and employers or (ii)

for imposing restrictive conditions on the conduct of any trade or business, and includes any

federation of two or more trade union.

The trade union, through its leadership, bargains with the employer on behalf of union

members and negotiates labor contracts with employers. This may include the negotiation of wages,

work rules, complaint procedures, and rules governing hiring, firing and promotion of workers,

benefits, workplace safety and policies. The main objective of the trade union is to attain collective

actions through group effort. So for in every company trade unions are necessary to safe guard

the interest of workers and also help in maintaining good industrial relations.

This study helps me to observe and learn the real atmosphere in an organization. It helps

me to gain knowledge about trade union and its impact on organization. This study also helps

me to understand the needs and wants of employees.

Definitions:

Section 2(h) of the Trade Unions Act, 1926 has defined a trade union as “ Any combination,

whether temporary or permanent, formed primarily for the purpose of regulating the relations

between workmen and employers, or between workmen and workmen, or between employers and

employers, or for imposing restrictive conditions on the conduct of any trade or business, and

includes any federation of two or more trade unions.”

According to Webbs, a trade union is a continuous association of wage earners for the purpose of

28

maintaining and improving the conditions of their working lives.

(Webb and Webb,

1894)

According to Flippo "A labour union or trade union is an organization of workers formed to

promote, protect, and improve, through collective action, the social, economic, and political

interests of its members.”

(Flippo)

According to British Columbia, the labour relations statute defines a “Trade Union means a local or

Provincial organization or association of employees, or a local or Provincial branch of a national

or international organization or association of employees in British Columbia, that has as one

of its purposes the regulation in British Columbia of relations between employers and employees

through collective bargaining, and includes an association or council of trade unions, but not

an organization or association of employees that is dominated or influenced by an employer.”

(British Columbia)

"Trade union means an organization (whether permanent or temporary) which consists wholly or

mainly of workers of one or more descriptions and is an organization whose principal

purposes include the regulation of relations between workers of that description or those

descriptions and employers or employers’ associations.”

(The Trade Union and Labour Relations Act 1974 (UK))

(Ontario Labour Relations Act)

Dale Yoder has defined trade union as a continuing long - term association of employees

formed and maintained for the specific purpose of advancing and protecting the interests of

members in their working relationships.

He quotes “a trade union is a continuous association of workers which is formed with the

purpose of protecting the interests of workers."

(Dale Yoder)

29

REGISTRATION OF TRADE UNION

Any 7 or more members of the trade union can by their names to the roles of the

trade union and by compelling with the provision in the Act (Trade Union Act, 1926) can apply for

registrar under the Act. The application has to be made to the registrar of trade union. This

application must be accompanied by a copy of rules of the trade union and statement of the

following particulars

Name, occupation and address of members making the application

The name of the trade union and the address of its head office.

The title name, age, address and occupations of the office bearers of the trade unions

WHY DO WORKERS JOIN TRADE UNION

Workers join trade unions because they are constrained by circumstances to do so; and because they

want:

To get economic security; that is they want steady employment with adequate income;

To restrain the management from taking any action this is irrational, illogical,

discriminatory or prejudicial to the interest of labor. Workers desire that assignment of jobs,

transfers promotions, maintains of discipline, lay – offs, retirement, reward and punishment

should be on the basis of predetermined policy and on the basis of what is fair and just.

To communicate their views, aims, ideas, feelings and frustrations to the management that is

they want to have an effective voice in discussions which is welfare.

To secure protection from economic hazards beyond their control; for example, illness,

accident, death, disability, unemployment and old age;

To get along with their fellow workers in , a better way to gain respect in the eyes of their peers;

and to get job through the good officers of a trade union.

OBJECTIVES OF TRADE UNION

The Main objective of any trade union is to protect the interest of workers/employees in the

organization. However the workers interest or welfare is a broad term in which various subjects

wages and salaries, working conditions, working hours, transfers, promotions, recruitment and

30

classifications, training, discipline, leave and holidays, dearness allowance, bonus, incentives,

quarters, sanitation, employee relations, mechanization, facilities to union, welfare and the like are

included. Thus, a trade union is meant to conduct negotiations on behalf of the individual workers in

respect of various items. Trade unions specifically concentrate their attention to achieve the

following objective:

Wages and salaries: The subject which drew the major attention of the trade unions is wages and

salaries. These items may be related to policy matters. However, differences may arise in the

process of their implementations. In case of unorganized sector the trade unions plays a crucial role in

bargaining the pay scales.

Working conditions: Trade unions with a view to safeguard the health of workers demands the

management to provide all basic facilities such as, lighting and ventilation , sanitation, rooms,

safety equipments while discharging hazardous duties, drinking water, refreshment, minimum

working hours, leave and rest, holidays with pay, job satisfaction, social security benefits and other

welfare measures.

Discipline: Trade unions not only conduct negotiations in respect of the items with which their

working conditions may be improved but also protect workers from clutches of management.

This victimization may take the form of penal transfer, suspensions dismissals, etc. In such a

situation the separated workers who left in a helpless condition may approach the trade union.

Ultimately the problem may be brought to notice of management by the trade union and it explains

about the injustice method out to individual workers and fights the management for justice.

Thus, victimized workers may be protected by the trade union.

Personal policies: Trade unions may fight against improper implementation of personnel

policies in respect of recruitment, selection, promotion, transfers, training etc.

Welfare: Trade unions are meant for welfare of the workers. Trade unions work as a guide,

consulting authority and cooperate in overcoming the personnel problems of workers. It may bring

to the notice of management, through collective bargaining meetings, the difficulties of workers

in respect of sanitation, hospitals, quarters, schools and collages of their children's cultural and

social problem.

31

Employee- employer relation: Harmonious relation between the employee and employer is

very essential for industrial peace. A trade union always strives for achieving this objective.

However the bureaucratize attitude and unilateral thinking of management may lead to conflicts in

the organization which ultimately disrupt the relation between workers and management. Trades

ultimately disrupt the relation between the workers and management.

ROLE OF TRADE UNIONS

The important role which are performed by trade unions are:

1. Negotiating machinery: Negotiations include the proposals made by one party and counter

proposals of the other party. This Process continues until the parties reach an agreement. Trade unions

being a party for negotiations protect the interest of workers through collective bargaining. Thus

the trade union works as negotiating machinery.

2. Safeguarding organizational health and the interest of the industry: Trade unions by their effective

working may be achieving employee’s satisfaction. Thus, trade unions help in reducing the rate

of absenteesm, labour turnover and developing systematic grievance settlement procedures leading

to harmonious industrial relations. Trade unions can thus contribute to improvements in level of

production and productivity, discipline and improve the quality of work

3. Communication: The trade union should pass more varied information to the workers about the union

and its activities.

4. Education and training: Education and training enhance the knowledge of employees working

environment and to add information regarding the right and responsibilities, worker participation etc.

5. Welfare: The union should help the management in developing innovative welfare schemes for

employee such as cooperatives, banks, nursery school etc. The trade union should undertake various

welfare activities for welfare and development of its members.

6. Counseling: Unions can play a very positive role in providing counseling service to employees.

Counseling will help the workers to learn new attitude towards work. In this case any misconduct

from the part of members, the union should give proper counseling to them.

7. Team building: Union can play a vital role in building effective working teams shaping the work

organization in direct consistent with the work place.

8. Research: Unions play a very significant role in generating data on various dimensions according

to the workers needs, aspirations and either independently or in collaboration with its

32

organization.

9. Family and vocational guidance:Unions can help workers by providing various facilities. For

example, they can provide guidance in respect of the education and careers of workers children.

10. Family and vocational guidance: Unions can help workers by providing various facilities. For

example, they can provide guidance in respect of the education and careers of workers children.

TRADE UNIONS IN AVS

CITU

AITUC

BMS

INTUC

All the above four unions are recognized were AVS requires 15% of vote for each union to

become recognized.

33

CHAPTER 4

RESEARCH METHODOLOGY

34

Background of the Study

Healthy Industrial Relations between labour and management are essential to achieve industrial

peace and higher productivity. It ensure continuity of production, reduces industrial disputes, improves

employee morale, and reduces wastage. HRD approach to industrial relation focuses on counseling,

mentoring, coaching etc. The study was made on one of the important constituent of Industrial Relations

ie, Trade union. As the phase of Industrial Relations is changing, the role of Trade Union is also changing.

Background of the topic

The study was conducted at Kottakal Arya Vaidya Sala(AVS) and it aimed at understanding the

role of Trade Unions on employees. The existence of a strong and recognized trade union is a pre-

requisite to industrial peace. The central function of a trade union is to represent people at work, but they

also have a wider role in protecting the interests of the people.

Nature of the Problem

There are four Trade Unions at AVS. All workers of AVS are the members of any of these Trade

Unions. What difference or change does this Trade Union brings in the individuals and organizational

roles of workers are what are being studied under this topic

Objectives of the Study

Primary Objective:

To analyze the role and relevance of trade union and its impact on employees of AVS

Secondary Objective:

To find out whether the workers demand is accepted by management through collective bargaining

To find out whether workers demand is accepted by the management under the pressure of strike and

lockouts

To check whether the years of experience in Trade Union leads to a good Employer-Employee

relations

Research Methodology

Research is a systematic method of finding a solution to a problem. The chapter briefly describes

the methodology employed for the research.

35

Research Process:

The survey was conducted by using questionnaire method. A structured questionnaire

which included all the relevant questions was prepared and distributed to 100 employees at

AVS

Data Collection methodology

The respondents were selected using random sampling. The study covers 100 employees at TCC Limited. The data collected from primary and secondary sources:

Primary data- from questionnaire and personal interview

Secondary data - websites, journals, books, research reports.

Tools Used:

The responses obtained from questionnaire were analyzed using simple percentage

Limitations of Study:

Reluctance from respondents.

No direct contacts with managerial heads.

As there are three shifts getting the feedback from all the employees was not possible.

Time constrain.

36

CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

37

TABLE SHOWING AGE WISE CLASSIFICATION OF RESPONDENTS

AGE NO:OF RESPONDENTS PERCENTAGE

Below 20 0 0

21-30 3 3

31-40 7 7

41-50 34 34

51 above 56 56

Total 100 100

Below 20 21-30 31-40 41-50 51 above0

10

20

30

40

50

60

AGE WISE CLASSIFICATION OF RESPONDENTS

INFERENCE

The above table and figure shows that 56% of the respondents are above 50 years age

group.34% of respondents are in the age group of 41-50 years and 7% of respondents are in the

age group of 31-40 and 3% are in age group of 21-30 and none of the respondents are under

below 20. From the analysis it is found that majority of respondents are in the age group above 50

38

TABLE SHOWING THE EDUCATIONAL LEVEL OF EMPLOYEES

NO. OF RESPONDENTS PERCENTAGE

SSLC 30 30

HSE 2 2

Diploma 2 2

Degree 0 0

P.G 0 0

Others 66 66

TOTAL 100 100

EDUCATIONAL QUALIFICATION OF RESPONDENTS

SSLCHSEDiplomaDegreeP.GOthers

INFERENCE

The above table and figure shows that 30% of respondents are qualified with a SSLC, 2% are

qualified with higher secondary, 2% are in high school level, 0% are in UG and 66% are P.G holders.

39

TABLE SHOWING THE CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

MEMBERSHIP IN TRADE UNION

PARTICULARS NO.OF RESPONDENTS PERCENTAGE

CITU 53 53

AITUC 24 24

BMS 15 15

INTUC 8 8

TOTAL 100 100

CITUAITUC

BMSINTUC

0

10

20

30

40

50

60

NO.OF RESPONDENTS FROM EACH TRADE UNION

INFERENCE

The above table show 53% respondents are members of CITU, 24% are in AITUC, 15%are

in BMS, and 8% are from INTUC.

40

TABLE SHOWING YEARS OF EXPERIENCE IN THE ORGANIZATION

PARTICULARS NO:OF RESPONDENTS PERCENTAGE

Below5 2 2

5-10 12 12

11-15 10 10

16-20 23 23

Above 20 53 53

Total 100 100

CHART SHOWING YEAR OF EXPERIENCE IN THE AVS

Below55 to 1011 to 1516-20Above 20

INFERENCE

From the table it is clear that 53%respondents have above 20 year of experience in the

organization, 23% have 16-20 years, 10 % of respondents have 11-15 years, 12 % have 5-10

years and 2 % below 5 years.

41

TABLE SHOWING YEARS OF MEMBERSHIP IN TRADE UNION


Below5 3 3

5-10 12 12

11-15 17 17

16-20 20 20

Above 20 48 48

Total 100 100

Below5 5 to 10 11 to 15 16-20 Above 200

10

20

30

40

50

60

CHART SHOWING YEARS OF MEMBERSHIP IN THE TRADE UNION

INFERENCE

From the table it is clear that 3%respondents have below 5year membership, 12%have 5-

10years, 17% of respondents have a membership of 11-15 years, 20% have 16-20 years and 48%

have more than 20 years membership in trade union

42

TABLE SHOWING REASON FOR JOINING A TRADE UNION

NO.OF RESPONDENTS PERCENTAGE

Ensure Security 26 26

Get Employment 10 10

Participation in trade union activity

23 23

Economic Benefit 28 28

Sense of Belongingness 13 13

TOTA

L

100 100

26%

10%

23%

28%

13%

CHART SHOWING REASON FOR JOINING TRADE UNION

Ensure Security Get EmploymentParticipation in trade union activity Economic BenefitSense of Belongingness

INFERENCE

The above table shows that 26% of respondents joined trade union to ensure security, 28% for

economic benefits, 23% to participate in trade union activity, 10% to get employment, and

13% of respondents joined because it gives them a sense of belongingness.

43

TABLE SHOWING THE TRADE UNION IN GETTING MEMBERS DEMAND ACCEPTENCE


Strongly disagree 2 2

Disagree 6 6

Neutral 30 30

Agree 28 28

Strongly agree 34 34

Total 100 100

Strongly disagree Disagree

NeutralAgree

Strongly agree

05

101520253035

CHART SHOWING THE TRADE UNION IN GETTING MEMBERS DEMAND ACCEPTENCE

INFERENCE

The table shows that 34% of respondents strongly agree with the above statement, 28% agree to it,

30% have a neutral stand, 6% disagree and 2% strongly disagree with the above statement.

44

TABLE SHOWING THE FACED BY TRADE UNIONS PROBLEMS


FINANCIAL PROBLEM 28 28

POLITICAL PROBLEM 13 13

MULTIPLICITY OF UNIONS 12 12

ILLITERACY 35 35

OUTSIDE LEADERSHIP 12 12

Total 100 100

FINANCIAL PROBLEM28%

POLITICAL PROBLEM

13%

MULTIPLICITY OF UNIONS12%

ILLITERACY35%

OUTSIDE LEADERSHIP12%

CHART SHOWING THE PROBLEMS FACED BY THE TRADE UNION

INFERENCE

The graph shows that 35% respondents are illiterate, 28% face financial problems, and rest of the

percentage belongs to outside leadership, political problem, multiplicity of unions.

45

TABLE SHOWING THE INFLUENCE OF POLITICAL PARTIES ON TRADE UNION



Disagree 28 28

Neutral 34 34

Agree 12 12

Strongly agree 6 6

Total 100 100

Strongly disagree Disagree Neutral Agree Strongly agree0

5

10

15

20

25

30

35

CHART SHOWING THE INFLUENCE OF POLITICAL PARTIES ON TRADE UNION

INFERENCE

The above table shows that , 34% of respondents are neutral, 28% of them disagree and 20%

of respondents strongly disagree ,6% of respondents strongly agree, 12% of respondents agree

the influence of political parties on trade union.

46

TABLE SHOWING THE AGREEABLENESS OF RESPONDENTS REGARDING THEIR PROTECTION FROM EXPLOITATION, BY THE TRADE UNIONS



Disagree 10 10

Neutral 37 37

Agree 33 33


Total 100 100

10%

37%

33%

20%

Strongly disagree Disagree Neutral Agree Strongly agree

INFERENCE

37% of the respondents feel protection of trade unions from exploitation.

47

TABLE SHOWING WHETHER COMPETITION BETWEEN TRADE UNIONS IS BENEFICIAL TO THE ORGANISATION



Disagree 13 13

Neutral 34 34

Agree 32 32


Total 100 100


5

10

15

20

25

30

35

40

CHART SHOWING WHETHER COMPETION BETWEEN TRADE UNIONS IS BENEFICIAL TO THE ORGANISATION

INFERENCE

The above table shows that 13% of respondents strongly agree,32% of respondents agree, 34% of

respondents are neutral, 13% of respondents disagree and 8% of respondents strongly

disagree with the trade unions maintaining good working condition

48

TABLE SHOWING WHETHER THE TRADE UNIONS HELP IN IMPROVING

EMPLOYER EMPLOYEE RELATIONSHIP



Disagree 5 5

Neutral 18 18

Agree 34 34


Total 100 100

INFERENCE

The above table shows that 43% of respondents strongly agree and 34% of respondents

agree, 18% of respondents are neutral, 5% of respondents disagree that competition among

trade unions is beneficial for the organization

49

CHART SHOWING WHETHER THE TRADE UNIONS HELP IN IMPROVING EMPLOYER EMPLOYEE RELATIONSHIP

Strongly disagreeDisagreeNeutralAgreeStrongly agree

TABLE SHOWING WHETHER THE TRADE UNIONS PROTECTS THE INTEREST OF WORKERS THROUGH COLLECTIVE BARGAINING



Disagree 2 2

Neutral 37 37

Agree 29 29


Total 100 100

Strongly disagree

Disagree Neutral Agree Strongly agree05

10152025303540

CHART SHOWING WHETHER THE TRADE UNIONS THE INTEREST OF WORKERS THROUGH COLLECTIVE BARGAINING

INFERENCE

The above table shows that 30% of respondents strongly agree and 29% of

respondents agree, 37% of respondents are neutral, 2% of respondents disagree and 2%

of respondents strongly disagree with the trade union helps in employer employee

relation.

50

TABLE SHOWING THE OVERALL PERFORMANCE OF TRADE UNION



Disagree 13 13

Neutral 38 38

Agree 34 34

Strongly agree 7 7

Total 100 100


5

10

15

20

25

30

35

40

CHART SHOWING THE OVERALL PERFORMANCE OF TRADE UNION

INFERENCE

The above table shows that 7% of respondents strongly agree and 34% of respondents agree, 38%

of respondents are neutral, 13% of respondents disagree and 8% of respondents strongly disagree

with the overall performance of the trade unions

51

TAB LE SHOWING WHETHER THE TRADE UNIONS HELP IN DEVOLOPING INNOVATIVE WELFARE SCHEMES.



Disagree 11 11

Neutral 33 33

Agree 40 40


Total 100 100

5%11%

33%

40%

11%

CHART SHOWING WHETHER THE TRADE UNIONS HELPS IN DEVOLOPING INNOVATIVE WELFARE SCHEMES


INFERENCE

The above table shows that 11% of respondents strongly agree and 40% of respondents agree, 33%

of respondents are neutral, 11% of respondents disagree and 5% of respondents strongly disagree

that the trade unions help in developing innovative welfare schemes.

52

TABLE SHOWING WHETHER TRADE UNIONS PLAY A VITAL ROLE IN BUILDING EFFECTIVE WORK TEAMS



Disagree 14 14

Neutral 58 58

Agree 15 15

Strongly agree 6 6

Total 100 100


10

20

30

40

50

60

CHART SHOWING WHETHER TRADE UNIONS PLAY A VITAL ROLE IN BUILDING EFFECTIVE WORK TEAMS

INFERENCE


agree, 58% of respondents are neutral, 14% of respondents disagree and 7% of respondents

strongly disagree that trade unions plays a vital role in building effective working teams

53

TABLE SHOWING WHETHER THE TRADE UNIONS HELPS IN MAINTAINING JOB SECURITY OF ITS MEMBERS



Disagree 26 26

Neutral 39 39

Agree 10 10

Strongly agree 7 7

Total 100 100

18%

26%

39%

10%

7%

CHART SHOWING THE JOB SECURITY


INFERENCE




54

TABLE SHOWING WHETHER STRIKES, LOCK OUTS, ETC ARE NECESSARY FOR GETTING DEMANDS ACCEPTED



Disagree 27 27

Neutral 5 5

Agree 0 0

Strongly agree 0 0

Total 100 100


10

20

30

40

50

60

70

CHART SHOWING WHETHER STRIKES, LOCKOUTS ARE NECESSARY FOR GETTINGDEMANDS ACCEPTED

INFERENCE

The above table shows that 5% of respondents are neutral, 27% of respondents disagree and

68% of respondents strongly disagree that trade unions plays a vital role in building effective

working teams

55

TABLE SHOWING WHETHER JOINING IN NATIONAL TRADE UNION IS MORE BENIFICIAL THAN LOCAL TRADE UNION



Disagree 13 13

Neutral 40 40

Agree 24 24


Total 100 100


5

10

15

20

25

30

35

40

CHART SHOWING THAT JOINING IN NATIONAL TRADE UNION IS MORE BENIFICIAL THAN IN LOCAL TRADE

UNION

INFERENCE




56

TABLE SHOWING WHETHER TRADE UNION ACTIVITIES ENHANCE THE KNOWLEDGE



Disagree 29 29

Neutral 15 15

Agree 5 5

Strongly agree 3 3

Total 100 100

48%

29%

15%

5%3%

CHART OF EMPLOYEES SHOWING WHETHER TRADE UNION ACTIVITES ENHANCE THE KNOWLEDGE


INFERENCE




57

TABLE SHOWING WHETHER SELECTION FOR THE EXECUTIVE MEMBERS OF TRADE UNIONS IS CONDUCTED IN A DEMOCRATIC WAY.



Disagree 31 31

Neutral 17 17

Agree 35 35

Strongly agree 5 5

Total 100 100


5

10

15

20

25

30

35

CHART SHOWING WHETHER SELECTION FOR THE EX-ECUTIVE MEMBERS OF TRADE UNION IS CONDUCTING

IN A DEMOCRATIC WAY

INFERENCE




58

TABLE SHOWING WHETHER THE TRADE UNIONS ARE SUCCESSFUL IN DISPUTE SETTLEMENT



Disagree 13 13

Neutral 47 47

Agree 29 29

Strongly agree 2 2

Total 100 100

9%

13%

47%

29%

2%

CHART SHOWING WHETHER THE TRADE UNIONS ARE SUCCESSFUL IN DISPUTE SETTLEMENT


INFERENCE




59

TABLE SHOWING WHETHER THE TRADE UNIONS FIGHT AGAINST IMPROPER IMPLIMENTATION OF POLICIES



Disagree 12 12

Neutral 8 8

Agree 54 54


Total 100 100


10

20

30

40

50

60

CHART SHOWING WHETHER THE TRADE UNIONS FIGHT AGAINST IMPROPER IMPLIMENTATION OF POLICIES

INFERENCE




60

TABLE SHOWING WHETHER THE EMPLOYEE DEVOLOPMENT PROGRAM OF TRADE UNION ARE GOOD FOR EMPLOYEE EFFECTIVENESS



Disagree 24 24

Neutral 36 36

Agree 27 27

Strongly agree 2 2

Total 100 100


5

10

15

20

25

30

35

40

CHART SHOWING WHETHER THE EMPLOYEE DEVOLOP-MENT PROGRAM OF TRADE UNION ARE GOOD FOR

EMPLOYEE

INFERENCE




61

TABLE SHOWING WHETHER TRADE UNIONS HELP IN REDUCTION OF ABSENTEEISM AND TURN OVER



Disagree 12 12

Neutral 32 32

Agree 34 34


Total 100 100

9%

12%

32%34%

13%

CHART SHOWING WHETHER UNIONS HELP IN REDUCTION OF ABSENTEEISM AND TURN OVER


INFERENCE




62

CHAPTER 6

FINDINGS, SUGGESTIONS AND CONCLUSION

63

FINDINGS

About 53% of the respondents are the members of INTUC.

About 48%of the respondents have above 20 years of membership in the union

The majority of the respondents are joined in the trade union because to ensure security.

By the various activities trade union have been able to achieve employee effectiveness to

a great extent and there by contributing to the success of the organization.

About 62% of the respondents feel good with the demand acceptance of the trade union.

Majority of the respondents feel that the problems faced by the trade union are mainly due to

the illiteracy.

More than half of the respondents say that the trade union protects its members from

exploitation and provide job security to its members.

Most of the respondents feel that the competition among trade union is not beneficial to the

organization.

Half of the respondents agree that the trade union help in enhancing employer-employee

relationship and protects the interest of the workers through collective bargaining.

Majority of the respondents are satisfied with the activities provided by the trade union.

About 32% of the respondents feel that there is a positive effect of trade union on

organizational climate.

Half of the respondents agree that the trade union helps in developing innovative welfare

schemes.

About 68% of the respondent's opinion is that the strikes, lock outs, etc. are not

necessary for getting demands accepted and thereby getting proper benefits.

Most of the employees agree that the joining national trade union is more beneficial than

joining local trade union.

Respondents feel that trade union activities do not enhance the knowledge of the employees.

64

About 37% of the respondents disagree with the selection criteria for the executive

members of trade union, since it is not conducting in a democratic way.

Majority of the respondents agree that the trade unions are successful in dispute

settlement.

About 54% of the respondents agree that the trade union fight against improper

implementation of policies.

About 29% of the employees agree that the employee development programs of trade union

are good for employee effectiveness.

About 47% of the respondent agree that the trade union helps in reduction of absenteeism

and turn over.

6.2 RECOMMENDATIONS/SUGGESTIONS

The trade union must protect and promote the economic and social interest of the workers.

Trade union should also provide up to date information regarding its various activities to the

employees.

They should give employees the right to participate in the decision making process of trade

union activities.

In democracy, political influence of trade union cannot be avoided. But it can be reduced to a

great extent. Since the main objective of trade union is employee welfare, it should give

more focus on that. Trade union must perform their activities in such a way that it get’s

maximum support from the employees. The main focus behind each of their activity should be

employee

welfare.

65

CONCLUSION:

The research study entitled "A study to find out the role and relevance of trade

union and its impact on employees" has given

many insights. For the purpose of the study a well defined questionnaire was

used among the respondents. There are four trade unions in AVS and all are

recognized by the company. Since all the unions are recognised there is a tight competition

between the unions. The main drawback of the unions is the

members are not properly educated and are unaware of their rights and duties. If the trade

unions in AVS become successful in getting maximum support from the part of

management and should avoid union rivalries and excess political influence,

there is no doubt that it can lead to employee effectiveness and there by

achieving organizational growth. And the union is also able to maintain a good employer-

employee relation in AVS. From the study we can conclude that the

trade union are must for every company for safeguarding the interest of the

workers and also help in maintaining good industrial relations.

66

BIBLIOGRAPHY

67

REFERENCE

BOOKS

Human Resources Management- Micheal Armstrong

Human Resources Management- V.S.P.Rao

Management and Organisational Behaviour- Lauire Mullins

Shashi K.Gupta and Rosy Joshi - Human Resource Management

R.S.Dwivedi - Human Resource and Organisation Behaviour

Srinivas.R.Kandula - Human Resource Management in Practice

WEBSITE

Official website of Kottakal Arya Vaidya Sala.

www.google.com

www.hrworld.com

68

APPENDIX

QUESTIONNAIRE69

I, Princy C A, MHRM student of Rajagiri Centre for Business Studies,Ernakulam,is carrying out a project in IR on the topic “A Study to find out the role and relevance of trade union and its impact on employees”. I kindly request you to fillin the questionnaire given below. The data will be kept strictly confidential and will be used purely for academic purpose only.

Age: Below 20 21-30 31-40 41-50 above51

Education: SSLC HSE Diploma Graduate Others

Organizational Experience: Below-5 5-10 11-15 16-20 above20

Name of the trade union in which you are in: CITU AITUC BMS INTUC

Year of experience in trade union: Below-5 6-10 11-15 16-20 above20

Reason for joining a trade union: To ensure security sense of belongingness

Economic benefits To get employment To participate in trade union activity

Major problems faced by your trade union: Financial problem Multiplicity of unions

Outside leadership Political problem Illiteracy Lack of good leaders

Instructions: Please indicate your level of agreement with the following statements. Mark a

number for each statement

1. Strongly disagree 2.disagree 3.Neutral 4.Agree 5.Strongly Agree

Sl no

1 Is trade union good in getting your demands accepted?

2 Trade unions are highly influenced by the political parties.

3 Trade Union protects its members from exploitation.

4 Helps in maintaining good working condition for the employees.

5 Competition between trade unions is beneficial for the

organization

6 Helps in maintaining good employer-employee relations.

7 Protects the interest of workers through their collective

bargaining.

70

8 Satisfied with the overall performance of trade union.

9 Trade Unions have a positive effect on organizational climate.

10 Helps in developing innovative welfare schemes for employees.

11 Plays a vital role in building effective working teams.

12 Provides job security

13 Activities like strike, lock outs etc. is necessary for getting

proper benefits.

14 Joining in a national trade union is more beneficial than a local

trade union.

15 Initiates activities to enhance the knowledge of employees.

16 The selection of executive members for trade union is conducted

in a democratic way? As per the by laws and rules

prescribed

17 Trade union successful in settling disputes.

18 Fight against improper implementation of personal policies like

recruitment, selection, promotion, transfer, training and for

getting reasonable wages, salaries.

19 Trade union contributes to employee effectiveness.

20 Trade union activities help in reducing the rate of absenteeism

and labour turn-over.

……………. Thank you ……………..

71

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