Introduction of Industrial Relation

CONTENTS
CHAPTER – 1
• Introduction of IR
• Definition
• Objectives of IR
• Components of IR
• Aspects of IR
• Features of IR
• Factors influencing IR
• Methodology
• Importance of the study
CHAPTER – 2
• Company profile of SAIL

• Major units of SAIL
• SAIL Today
• Rourkela Steel Plant
• Stages of development of RSP
• Special features of RSP
• Major units of RSP
• Product mix of RSP
• Products and its applications
• Organization chart of RSP
CHAPTER – 3
• Industrial Relation in RSP

• Workers participation in Management
• Grievance Machinery
• Settlement Machineries
• Conciliation
• Arbitration
Dayananda Sagar Business Academy

• Adjudication
• Joint Committees in RSP

• Central Safety Committee
• Central Consultative
• Canteen Managing Committee
• Works Standing Order
• Suggestion Scheme
• Awards for Long Term Services
• Trade Unions
• Industrial Discipline
• New Trends of Industrial Relation
• Mass contact exercise
• Employee relation and employee services at SAIL, RSP
• Manpower summary of RSP
CHAPTER – 4
• Questionnaires for Workers and Management

• Data Analysis and Interpretation
CHAPTER – 5
• Effects of poor Industrial Relation

• Problems of Industrial Relation
• A view from Workers and Management
• Suggestions
CHAPTER – 6
• Conclusion

• Bibliography

INTRODUCTION OF INDUSTRIAL RELATION
The relationship between Employer and employee or trade unions is called Industrial
Relation. Harmonious relationship is necessary for both employers and employees to
safeguard the interests of the both the parties of the production. In order to maintain good
relationship with the employees, the main functions of every organization should avoid
any dispute with them or settle it as early as possible so as to ensure industrial peace and
higher productivity. Personnel management is mainly concerned with the human relation
in industry because the main theme of personnel management is to get the work done by
the human power and it fails in its objectives if good industrial relation is maintained. In
other words good Industrial Relation means industrial peace which is necessary for better
and higher productions.
A man working in a healthy atmosphere can produce more. Within an industry there is a
hierarchy among the people. From the very beginning there is always a gap between have
and have-nots. In order to bring harmonious relation between the management, workers
and unions for the sake of industry as well as for the nation, positive relation within an
industry is expected. Therefore the term "INDUSTRIAL RELATION” came into
limelight.
Industrial Relation is a major force which influences the social, political and economic
development of a country .Managing industrial relations is a challenging task because it
deals with a highly complex, fast developing, ever changing and expanding field. There
are certain factors such as composition of working class, work environment, socio-
economic status of the workers and their attitude to work, management's ideology, role of
the state, thinking of the community etc which have a considerable bearing on the state of
relationship between labour and management. Different labour enactments and judicial
decisions playa major role in regulating the employer -employee relationship. It creates an
atmosphere in which the human system will operate harmoniously in a coordinated way.

Keeping in view the different aspects of industrial relations, an attempt has been made in
this project to provide a multi dimensional approach to the subject.
DEFINITION :-
• According to TEAD and METCALFE:-
"Industrial Relation are the composite result of the attitudes approaches of employers and
employees towards each other with regard to planning, supervision, direction and
coordination of the activities of an organization with a minimum of human efforts and
frictions with an animating spirit of cooperation and with proper regard for the genuine
well being of all members of the organization.
• According to DALE YODER:-
"Industrial Relation is a whole field of relationship that exists because of the necessary
collaboration of employees in the employment process of an industry ."
• According to ALLAN FLANDER:-
"The subject of industrial relations deals with certain regulated or institutionalized

relationships in industry ."
• According to Professor CLEGG:-
"Industrial Relations are the rules governing employment together with the ways in which
the rules are made and changed and their interpretation and administration."
From the above definitions we find Industrial Relations as:-
i) The term stood for manpower of the enterprise i.e. the employee – employer
relationship in an industry .

ii) Later on the relations get created at different levels of the organization by the
diverse, complex composite needs, aspirations, attitudes and approaches among
the participants.
iii) The parties actively associated with any industrial relation are the workers, the
management, the organizations of workers and managements, and the State.
iv) It denotes all types of inter - group and intra -group relations within industry, both
formal as well as informal.
OBJECTIVES OF INDUSTRIAL RELATION :-
Apart from the primary objective of bringing about sound and healthy relations between
employers and employees, Industrial Relation aims at:-
A. To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry
which participate in the process of production.
B. To avoid industrial conflict or strife and develop harmonious relations, which are
an essential factor in the productivity of workers and the industrial progress of a
country.
C. To raise productivity to a higher level in an era of full employment by lessening

the tendency to high turnover and frequency absenteeism.
D. To establish and nurse the growth of an Industrial Democracy based on labor

partnership in the sharing of profits and of managerial decisions, so that ban
individuals personality may grow its full stature for the benefit of the industry and
of the country as well.
E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by

providing reasonable wages, improved living and working conditions, said fringe
benefits.

F. To establish government control of such plants and units as are running at a loss or
in which productions has to be regulated in the public interest.
G. Improvements in the economic conditions of workers in the existing state of

industrial managements and political government.
H. Control exercised by the state over industrial undertaking with a view to regulating
production and promoting harmonious industrial relations.
I. Socializations or rationalization of industries by making he state itself a major

employer
J. Vesting of a proprietary interest of the workers in the industries in which they are
employed.
COMPONENTS OF INDUSTRIAL SYSTEM:-
I) PARTICIPANTS: The participants in the industrial relations sphere are composed

of duly recognized representatives of the parties interacting in several roles within
the system. It includes -
a. Employee Relation - It includes the complex relationship among the

employees.
b. Labour Relation - It includes the relationship between management and

Trade Union.
c. Public Relation - It includes the relationship of industry with the entire

community as a whole.
2) ISSUES: The power interactions of the participants in a workplace create

industrial relation issues. These issues and the consequences of power interactions
find their expression in a web of rules governing the behaviour of the parties at a
workplace. :

3) STRUCTURE: The structure consists of all forms of institutionalised behaviour
in a system. The structure may include collective procedures, grievance settlement
practices etc. legal enactments relevant to power interactions may also be
considered to be a part of the structure.
4) BOUNDARIES: In systems analysis, it is possible to find an issue which one

participant is totally indifferent to resolving while, at the same time, the other
participant is highly concerned about resolution of the same. These issues may
serve to delimit systems boundaries.
ASPECTS OF INDUSTRIAL RELATION
The main aspects of Industrial Relations are:-
i. Labor Relations, i.e. relations between union and management.
ii. Employer-employees relations, i.e. relations between management and employees.
iii. Group relations, i.e. relations between various groups of workmen.
iv. Community or Public relations, i.e. relations between industry and society.
v. Promotions and development of healthy labor-managements relations.
vi. Maintenance of industrial peace and avoidance of industrial strife
vii. Development of true industrial democracy.

FEATURES OF INDUSTRIAL RELATION
A few notable features pertaining to Industrial Relations are as under:
1. Industrial Relation do not emerge in vacuum they are born of employment

relationship in an industrial setting. Without the existence of the two parties, i.e.
labor and management, this relationship cannot exist. It is the industry, which
provides the environment for industrial relations.
2. Industrial Relation are characterized by both conflict and co-operations. This is the
basis of adverse relationship. So the focus of Industrial Relations in on the study
of the attitudes, relationships, practices and procedure developed by the
contending parties to resolve or at least minimize conflicts.
3. As the labor and management do not operate in isolations but are parts of large
system, so the study of Industrial Relation also includes vital environment issues
like technology of the workplace, country's socio-economic and political
environment, nation's labor policy, attitude of trade unions workers and employers.
4. Industrial Relation also involve the study of conditions conductive to the labor,
managements co-operations as well as the practices and procedures required to
elicit the desired co-operation from both the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of
courts, customs and traditions, as well as policy framework laid down by the
governments for eliciting co-operations between labor and management. Besides
this, it makes an in-depth analysis of the interference patterns of the executive and
judiciary in the regulations of labor-managements relations.

FACTORS INFLUENCING INDUSTRIAL RELATION :
The concepts of Industrial Relations are very broad-based, drawing heavily from a variety
of discipline like social sciences, humanities, behavioral sciences, laws etc. In fact,
Industrial Relation encompasses all such factors that influence behavior of people at work.
A few such important factors are details below:
1. Institution: It includes government, employers, trade unions, unions federations or

associations, government bodies, labor courts, tribunals and other organizations
which have direct or indirect impact on the industrial relations systems.
2. Characters: It aims to study the role of workers unions and employers' federations
officials, shop stewards, industrial relations officers / manager, mediator /
conciliators / arbitrator, judges of labor court, tribunal etc.
3. Methods: Focus on collective bargaining, workers' participation in the Industrial

Relation schemes, discipline procedure, grievance re-dressal machinery, dispute
settlements machinery working of closed shops, union reorganization,
organizations of protests through methods like revisions of existing rules,
regulations, policies, procedures, hearing of labor courts, tribunals etc.
4. Contents: Includes matter pertaining to employment conditions like pay, hours of

works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals
retirements etc., laws relating to such activities, regulations governing labor
welfare, social security, industrial relations, issues concerning with workers'
participation in management, collective bargaining, etc.
5. History of industrial relations: No enterprise can escape its good and bad history
of industrial relations. A good history is marked by harmonious relationship
between management and workers. A bad history by contrast is characterized by
militant strikes and lockouts. Both types of history have a tendency to perpetuate
themselves. Once militancy is established as a mode of operations there is a

tendency for militancy to continue. Or once harmonious relationship is established
there is a tendency for harmony to continue.
6. Economic satisfaction of workers: Psychologists recognize that human needs

have a certain priority. Need number one is the basic survival need. Much of men
conducted are dominated by this need. Man works because he wants to survive.
This is all the more for underdeveloped countries where workers are still living
under subsistence conditions. Hence economic satisfaction of workers is another
important prerequisite for good industrial relations.
7. Social and Psychological satisfaction: Identifying the social and psychological

urges of workers is a very important steps in the direction of building good
industrial relations. A man does not live by bread alone. He h61s several other
needs besides his physical needs which should also be given due attention by the
employer. An organization is a joint venture involving a climate of human and
social relationships wherein each participant feels that he is fulfilling his needs and
contributing to the needs of other. This supportive climate requires economic
rewards as well as social and psychological rewards such as workers' participation
in management, job enrichment, suggestion schemes, re-dressal of grievances etc.
8. Off-the-Job Conditions: An employer employs a whole person rather than certain

separate characteristics. A person's traits are all part of one system making up a
whole man. His home life is not separable from his work life and his emotional
condition is not separate from his physical condition. Hence for good industrial
relations it is not enough that the worker's factory life alone should be taken care
of his off-the-job conditions should also be improved to make the industrial
relations better .
9. Enlightened Trade Unions: The most important condition necessary for good
industrial relations is a strong and enlightened labor movement which may help to
promote the status of labor without harming the interests of management, Unions
should talk of employee contribution and responsibility. Unions should exhort

workers to produce more, persuade management to pay more, mobilize public
opinion on vital labor issues and help Government to enact progressive labor laws.
10. Negotiating skills and attitudes of management and workers: Both

management and workers' representation in the area of industrial relations come
from a great variety of backgrounds in terms of training, education, experience and
attitudes. These varying backgrounds playa major role in shaping the character of
industrial relations. Generally speaking, well-trained and experienced negotiators
who are motivated by a desire for industrial peace create a bargaining atmosphere
conducive to the writing of a just and equitable collective agreement. On the other
hand, ignorant, inexperienced and ill-trained persons fail because they do not
recognize that collective bargaining is a difficult human activity which deals as
much in the emotions of people as in their economic interests. It requires careful
preparation and top -notch executive competence. It is not usually accomplished
by some easy trick or gimmick. Parties must have trust and confidence in .each
other. They must possess empathy, i.e. they should be able to perceive a problem
from the opposite angle with an open mind. They should put themselves in the
shoes of the other party and then diagnose the problem. Other factors which help
to create mutual trust are respect for the law and breadth of the vision. Both parties
should show full respect for legal and voluntary obligations and should avoid the
tendency to make a mountain of a mole hill.
11. Public policy and legislation: When Government, regulates employee relations, it
becomes a third major force determining industrial relations the first two being the
employer and the union. Human behavior is then further complicated as all three
forces interact in a single employee relation situation. Nonetheless, government in
all countries intervenes in management -union relationship by enforcing labor laws
and by insisting that the goals of whole society shall take precedence over those of
either of the parties. Government intervention helps in three different ways 1) it
helps in catching and solving problems before they become serious. Almost every
one agrees that it is better to prevent fires them to try stopping them after they

start; 2) It provides a formalized means to the workers and employers to give
emotional release to their dissatisfaction; and 3) It acts as a check and balance
upon arbitrary and capricious management action.
12. Better education: With rising skills and education workers' expectations in respect
of rewards increase. It is a common knowledge that the industrial worker in India
is generally illiterate and is misled by outside trade union leaders who have their
own axe to grind. Better workers' education can be a solution to this problem. This
alone can provide worker with a proper sense of responsibility, which they owe to
the organization in particular, and to the community in general.
13. Nature of industry: In those industries where the costs constitute a major
proportion of the total cast, lowering down the labor costs become important when
the product is not a necessity and therefore, there is a little possibility to pass
additional costs on to consumer. Such periods, level of employment and wages rise
in decline in employment and wages. This makes workers unhappy and destroys
good industrial relations.

METHODOLOGY:
There are various methodologies in order to complete this project. The methodology
which has been adopted in this subject works are as follows:
a) Questionnaire :
To know the opinion about the Industrial Relation system in Rourkela Steel Plant (SAIL),
questionnaires has been made for executives, unions -representative and workers
separately. This was supplied to 50 executives, union representatives and 200 workers.
b) Records :
The secondary source of getting facts related to project work has been collected from the
following: -
o Statistical statement
o Journals
o Internet
o RSP Panorama
o Personnel working within the premises of RSP
c) Observations :
The investigator observed the mental and physical involved of both the management and
worker in connection of industrial relation with various departments of the plant.
d) Interviews :
The investigator took interviews of the executives, union representatives and workers
based upon Industrial Relations of R.S.P.

IMPORTANCE OF THE STUDY:
The importance of this study is:-
i) To find out the internal industrial relation system between the management, the
worker and union.
ii) To find out the causes which makes industrial relations positive or negative.
iii) To find out the industrial peace and harmony that is going on within the premises
of R.S.P.
iv) To find out the facilities given to the worker which motivate the workers to
sacrifice their blood and sweat for increasing the productivity.
v) To find out the ways to help in building the positive industrial relations for
workers and management for development of the interest of R.S.P. as well as the
interest of nation.

COMPANY PROFILE
Steel Authority of India Limited (SAIL) is the leading steel-making company in India.
SAIL traces its origin to the formative years of an emerging nation, India. After
independence the builders of modern India worked with a vision -to lay the infrastructure
for rapid industrialization of the country .It is a fully integrated iron and steel maker,
producing both basic and special steels for domestic construction, engineering, power,
railway, automotive and defence industries and for sale in export markets. Ranked
amongst the top ten public sector companies in India in terms of turnover, SAIL
manufactures and sells abroad range of steel products, including hot and cold rolled sheets
and coils, galvanized sheets, electrical sheets, structural, railway products, plates, bars and
rods, stainless steel and other alloy steels. SAIL produces iron and steel at five integrated
plants and three special steel plants, located principally in the eastern and central regions
of India and situated close to domestic sources of raw materials, including the Company's
iron ore, limestone and dolomite mines. The company has the distinction of being India's
largest producer of iron ore and of having the country's second largest mines network.
This gives SAIL a competitive edge in terms of captive availability of iron ore, limestone,
and dolomite which are inputs for steel making. SAIL's wide ranges of long and flat steel
products are much in demand in the domestic as well as the international market. This
vital responsibility is carried out by SAIL's own Central Marketing Organisation (CMO)
and the International Trade Division. CMO encompasses a wide network of 34 branch
offices and 54 stockyards located in major cities and towns throughout India.
With technical and managerial expertise and know-how in steel making gained over four
decades, SAIL's Consultancy Division (SAILCON) at New Delhi offers services and
consultancy to clients world-wide.
SAIL has a well-equipped Research and Development Centre for Iron and Steel (RDCIS)
at Ranchi which helps to produce quality steel and develop new technologies for the steel
industry .Besides, SAIL has its own in-house Centre for Engineering and Technology.

(CET), Management Training Institute (MTI) and Safety Organisation at Ranchi. Our
captive mines are under the control of the Raw Materials Division in Kolkata. The
Environment Management Division and Growth Division of SAIL operate from their
headquarters in Kolkata. Almost all our plants and major units are ISO Certified.
MAJOR UNITS OF SAIL:
A. INTEGRA TED STEEL PLANTS
1. Bhilai Steel Plant (BSP) in Chhattisgarh

2. Durgapur Steel Plant (DSP) in West Bengal
3. Rourkela Steel Plant (RSP) in Orissa
4. Bokaro Steel Plant (BSL) in Jharkhand
5. IISCO Steel Plant (ISP) in West Bengal
B. SPECIAL STEEL PLANTS
i. Alloy Steels Plants (ASP) in West..J3engal

ii. Salem Steel Plant (SSP) in Tamil Nadu
iii. Visvesvaraya Iron and Steel Plant (VISL) in Karnataka
SAIL TODAY
SAIL today is one of the largest industrial entities in India. Its strength has been the
diversified range of quality steel products catering to the domestic, as well as the export
markets and a large pool of technical and professional expertise. Today, the accent in
SAIL is to continuously adapt to the competitive business environment and excel as a
business Organisation, both within and outside India.

ROURKELA STEEL PLANT
Rourkela Steel Plant (RSP), the first integrated steel plant in the Public Sector in India,
was set up with German collaboration with an installed capacity of 1 million tonnes.
Subsequently, the capacity was enhanced to 1.9 million tonnes. The plant was modernized
in the mid 1990s with a number of new units with state-of -the-art facilities. Most of the
old units have also been revamped for effecting substantial improvement in the quality of
products, reducing the cost and ensuring cleaner environment.
The govt. of India under the able leadership of the then Prime Minister Pt. Jawaharlal
Nehru, decided to set up large steel plants by the government itself after the general
election of 1952. Rourkela and its adjacent areas are rich in iron ores, manganese,
dolomite and lime stones, the basic materials required for production of steel and iron.
Considering Rourkela to be the best place for a steel plant, the survey work was
completed in the year 1954. The infrastructure work of the plant was accomplished in
between 1955 and 1960. The Republic of Germany extended technical know how for the
construction of the steel plant and the plant was considered a joint venture of the govt. of
India and Germany. The initial production limit of one million tonnes steel per annum was
raised to 1.8 million tonnes in the subsequent years. The internationally reputed firms like
the Krrups, Dimag, G.H.H. Sag, Scholomen, Cemens and Voist Eipine etc supplied
different machines and machinery parts to the plant at the beginning stage. The Rourkela
Steel Plant took the part of leadership in the process of steel production under L.D.
techniques. It could also establish itself as one of the premier industries of the world under
the system of basic oxygen converter. The extension work of the plant was over by the
year 1968. A circular welding pipe plant and special plate plant were set up in the decade
of seventies for production of different ready -made materials. To avoid scarcity of power
supply, power plant was set up with a capacity of 120 M. W at the plant. The power plant
is able to cater the requirement of power supply from the year 1986.

STAGES OF DEVELOPMENT OF RSP:
1953  Agreement signed with KRUPP -DEMAG for Rourkela
1958  First Coke Oven Battery lit at Rourkela
1959  First Blast Furnace inaugurated
Blooming and Slabbing Mill commissioned
First L.D. Converter commissioned
1960  Plate Mill commissioned
ERW Pipe Plant commissioned
1961  Hot Strip Mill Commissioned
1962  Fertilizer Plant commissioned
1965  Sintering Plant Commissioned
1966  Expansion of L.D. Converter commissioned
1967  Expansion of Blast Furnace commissioned
1968  Tandem Mill Electrolytic Timing Line Electric Mill commissioned
1969  Galvanizing Sheet Mill commissioned
1982  Foundation laid for the first slab cement plant SAIL
1987  Inauguration of latest energy efficient KOREX process
1991  Inauguration of 2nd phase of RSP Modernization
1994  Inauguration of biological oxidation dephenolisation plant

1996  Inauguration of new dividing line, new BOF shop and new Sinter Plant
SPECIAL FEATURES OF RSP:
• It is the first plant in Asia to adopt LD process of steel making.
• It is the only plant producing large diameter ERW I SW Pipes conforming to most
rigid standards of API.
• It is the first steel plant in India to adopt external desulphurization of hot metal be
calcium carbide injection process.
• It is the only plant in SAIL producing Cold Rolled Non Oriented (CRNO) sheets for
use in the electric industries with installed capacities of 73,000 ton per year.
• It is the first plant to adopt vacuum degassing metallurgy, primarily for production of
silicon steel for the CRNO sheets.
• It is the first integrated steel plant in SAIL family to produce 100% of steel through
the cost effective and quality centered continuous casting route.
• All the major production departments and some service departments certified with
ISO 9001 :2000 QMS.
• Silicon Steel Mill, Environmental Engineering Department and Sinter Plant -II, Hot
Strip Mill and Plate Mill certified with ISO 14001 :2004 EMS.
MAJOR UNITS OF RSP
Raw Materials play the most vital role in RSP's production of 1.9 million tonnes (MT) of
steel per annum. Each year, 2.3 MT of Coking Coal, 1.5 MT of Boiler Coal, 1.8 MT of

Iron Ore Lumps, 1.5 MT of Iron Ore Fines, 1.6 MT of fluxes and other materials viz. Tin,
Zinc, Aluminium and Ferroalloys constitute RSP's input requirements.
A) Ore Bedding and Blending Plant
The Ore Bedding and Blending Plant has a base mix preparation system with on-ground
bedding, blending and conveying facilities. Set up under the modernization programme to
provide pre-mix feedstock to Sinter Plant -1 & Sinter Plant -II, the plant has a dispatch
capacity of 5,00,000T of material per annum. The facilities includes major installations
like Wagon unloading (tipplers & track hoppers), Iron Ore Crushing and Screening
System, raw material storage yard, rod mills and roll crushers for flux and coke crushing,
proportioning bins and elaborate conveying systems.
B) Coke Oven
The 4.5-meter tall coke oven batteries produce coke as the input for Blast Furnaces. The
coke ovens are equipped with wagon tipplers, automatic handling and conveying
facilities, coal blending provisions, coke wharf age crushing together with screening and
conveying systems.
C) Sintering Plant
RSP'S two sinter plants feed sinter to the blast furnaces with a combined capacity of 3.07
million tonnes per annum. Set up as part of the modernization drive, Sintering Plant -II is
operating at more than its rated capacity since the year 2000. This has facilitated the
increased usage of sinter bin blast furnace burden.
D) Blast furnaces
The four Blast Furnaces of RSP, with a...combined capacity of 2 MT, produce hot molten
metal for steel production.

E) Steel Melting Shops .
SMS-I
Apart from a computerized LD process, which has enhanced shop capability, the LA
Vacuum Metallurgy Technique, has been also adopted for secondary refining of steel. This
facilitates production of special steels for application in electrical machines, pipe making,
tinplate, boilers and auto chassis members. The shop was originally designed to produce
ingots for conversion to slabs through the Slabbing Mill route. However, after the
discontinuation of the ingot route, the SMS-I produces slabs through casting machine.
SMS-II
The Shop is provided with the latest steel making, secondary refining (ladle furnace and
argon rinsing) facilities and two single strand slab casters to produce 1,355,000 tonnes of
steel slabs annually. This is the biggest unit set up under the modernization programme.
The shop is provided with automation through three levels of computerised control, LD
gas cleaning and recovery , power distribution system, water and utility services.
F) Plate Mill
This 3.1 MT wide, 4 high reversing mills is equipped with on-line thickness measurement
facilities. Facilities for inspection by customer's nominees, on-line ultrasonic testing and
checking ensure the quality of plates dispatched to the customers. A new walking beam
type furnace with a capacity of 100 Tonnes/hour was installed during the modernization
programme for slab heating. The mill has a production capacity of 2,99,000 Tonnes per
annum .
G) Hot Strip Mill
The facilities of the 1.440 Million Ton per annum mill were augmented during
modernization with the installation of :
• Two new walking beam type reheating furnace (225 TPH)

• Roughing/sizing stand ROVO a with automation
• Automated coil box
• Quick roll change system in Roughing Stand-I and finishing mills.
• Coil marking, sampling and conveying systems.
H) Cold Rolling Mill
This features a modern 5-stand tandem mill and a 4-high 1700-mm reversing mill. The
tandem mill is equipped with automatic gauge control, x-ray gauge, data logging and
thyristorisation. It produces about 6,78,000 tonne per annum of cold rolled sheet .
I) Electrolytic Tinning Line
The continuous electrolytic tinning line produces a shining tin-coated surface in a variety
of coating thickness. The tinplate shearing lines are equipped with sensitive pinhole
detectors and an automatic sorting system.
J) Galvanising Lines
Two continuous hot-dip galvanizing lines are equipped with jet-coating facilities. There
are 2 multi-roller-corrugating machines, which produce corrugated sheets.
K) Silicon Steel Mills
This unit produces steel for the electrical industry through various operations carried out
in sophisticated, continuous/semi-continuous processing lines and a 4-high reduction mill.
Advanced process control and product testing facilities ensure product quality.
L) Pipe Plants
A highly sophisticated Spiral Welded Pipe Plant (SWPP) is equipped with submerged arc
welding process and produces large diameter pipes. Hydrostatic pressure testing,
ultrasonic testing and eddy current testing are some of the features, which ensure quality
control. The Electric Resistance Weld Pipe Plant (ER WPP) caters to the smaller diameter

pipe consumers. This plant has been recently upgraded to enable it to produce API grade
pipes.
M) Traffic & Raw Material
The Traffic and Raw Material department deals with procurement and supply of raw
materials to various user departments, internal movement of in-process and other material
from one unit to another and dispatch of finished products to outside parties or SAIL stock
yards in railway wagons. The department maintains 350 wagons, 40 locomotives and a
network of 240 kilometers rail tracks all over the plant.
N) Environment Management
IRSP has invested about Rs. 340 crores on environment protection measures in 95
schemes, since 1990-91.By formulating and implementing a strategy of3-R's namely, Re-
use, Recycle and Reduce, RSP is now able to achieve the twin objectives of generating
resources as well as controlling pollution. Since its inception, RSP has so far planted 37
lakh saplings in and around the steel city and in 2005 RSP has planted 70,000 saplings in
and around Rourkela.
O) Computerisation
Rourkela Steel Plant has introduced an on-line system named as Production Planning and
Control System (PPCS), which connects various functional departments of RSP into a
single network system. Developed and executed in-house by a team of dedicated
professionals of the Information Technology and Production Planning and Control
Department with the support of the Works and Projects units.
P) Human Resource Development Centre (HRDC)
The Human Resources Development Centre of Rourkela Steel Plant was set up in the late
1950s and it consists of the Management Development Programme wing, auditoriums,
well equipped workshops, skill up gradation shops, lecture halls for act apprentices and a
well-equipped library on a plethora of Technical and Managerial subjects.

Q) Central Power Training Institute (CPTI)
The Central Power Training Institute (CPTI) has facilities to impart training in operation
and maintenance of power plants and power distribution systems. The Institute conducts
training largely for operation and maintenance personnel of SAIL captive power plants
and Power Distribution Network departments.
PRODUCT MIX OF RSP (IN TONNES PER ANNUM)
PRODUCT-MIX TONNES / ANNUM
Plate Mill Plates 2,99,000
HR Plates 92,500
HR Coils 3,98,000
ERW Pipes 75,000
SW Pipes 55,000
CR Sheets & Coils 4,33,000
Galvanized Sheets (GP& GC) 1,60,000
Electrolytic Tin-Plates 85,000
Silicon Steel Sheets 73,500
Total Saleable Steel 16,71,000

PRODUCT AND IT APPLICA TIONS
Products Applications
HR Coils LPG Cylinders, automobile, railway wagon chasis and all

types of high strength needs.
Plates Pressure vessels, ship building and engineering structures
Chequered Plates Flooring & staircases in the industrial sectors and railway platforms
etc.
CR Sheets & Coils Steel furniture, white goods like refrigerators, washing machines,
automobile bodies, railway coach paneling, drums, barrels, deep
drawing and extra deep drawing etc.
Galvanised Sheets Roofing, paneling, industrial sheeting, air conditioner ducting and
structural
Electrolytic Tin Containers for packaging of various products including edible oils,
Plates vegetables and confectionary items.
Silicon Steel sheets Small generators, stators for high efficiency rotating equipment and
& relays etc.
Spiral Weld Pipes High pressure transportation of crude oil, natural gas and slurry
transportation, water supply, sewage disposals, grain silos, civil
engineering pilings etc.
Spiral Weld Pipes High pressure transportation of oil and water, sewage disposal, tube
wells etc.

ORGANISATION STRUCTURE OF ROURKELA STEEL
PLANT
Managing Director
Executive General Executive Executive Executive Executive

Director Manager Director I/C Mat Director Director Mgt Director Medical
Personnel & Finance mgr & proj Works serv.& business & health service
Admn accounting planning
General manager Dy General Manager

CO.CC&FP C & IT
General General General
Manager Manager Manager
Material General manager Total Quality Mgt
Personnel & Marketing
Admn Mgt Sintering Plants
General manager Dy General Manager

Dy General Dy General Iron SQC
Manager Manager
Marketing Material
Mgt General manager Dy General Manager
Steel IED
General manager
Hot Strip Mill
General manager
Cold Rolling Mill
General manager
Mechanical
General manager
Electrical
General manager
Services
DGM Safety
DGM Fire Services
General manager
Research &
Control lab

INDUSTRIAL RELATION IN RSP
Before 2004 working environment at RSP was taken up by Discipline Department which
was one of the reasons for RSP's huge loss continuously. After the year 2004, both the
workers and management realized that if they work united then only productivity and
profit of RSP is possible. The positive approach started from 2004 and the relationship
continues to improve future management and workers. So, we can blindly express that in
this 21 st century there is a good and co -ordinal relation between worker and
management. They together share both the bad and good times of RSP.
RSP is professionally managed through their IR System. RSP has positive industrial
relations with better understanding, better co-operation between management and worker
with greater emphasizing, grievance handling procedure, safety and various facilities
provided to the workers which motivates them to do their work hard. Positive industrial
relations include many more things as it is discussed here.
The indicators of positive industrial relation within the premises of RSP are explained
below:-
(A) WPM :- Workers participation in Management
Workers participation in management is a method through which workers are able to

express their view collectively for the smooth functioning of the industrial enterprise. In
the words of Pt. Jawaharlal Nehru,
"The wealth of the country is not its gold and silver, but the goods manufactured
by the hard labour of her people."
Keeping this national objective in view, the Rourkela Steel Plant with the active
participation of various functioning trade unions and recognized union has involved
various participative forms from 1969 onwards. Various tripartite agreements were signed
between the management of RSP and the Rourkela Majdoor Sabha and then the
recognized union to involve workers in various participative activities such as grievance,

production, safety, and welfare amenities etc. Thus RSP with the active participation of
Rourkela Majdoor Sabha became the pioneer in the field of participative culture in general
and in the steel industry in particular.
(B) Grievance Machinery
According to the code of discipline there should be grievance machinery every industrial
establishment for the sake of workers grievances. In the certified standing orders of the
company, it is mentioned that all grievances of the employees shall be dealt with by the
grievance Machinery which is to be set up as far as possible on the lines of the model
grievance procedure involved by the Indian labour conference in 1958.
The Grievance Machinery is now operating in RSP at the Department / Unit level. The
concerned personnel executives hears and records the grievances of individual employees
and takes up the grievance with authorities concerned to settle the matter.
In order to supplement the above method of grievance redressal, a 2 tier formal grievance
form is being put up in place. The 1st tier is known as Grievance Redressal Committee for
employees and the apex committee as Grievance Redressal Apex Committee for
employees at the higher level. The committees are competent to involve their procedure to
settle grievances as and when referred to for a solution.
(C) Settlement Machineries
In Industrial Dispute Act, 1947 there are some machinery for the investigation and
settlement of industrial disputes. They are as follows:-
a) Conciliation :
It is a peace making process in RSP. A conciliator contacts both the parties by separate
meetings and jointly through joint conference. The parties mayor may not accept his
suggestions.

b) Arbitration :
If the parties are not satisfied with the decision of the conciliation machinery then a third
party interference known as "Arbitrator" is introduced. There are two types of Arbitrations
in RSP. They are:
• Voluntary Arbitration
• Compulsory Arbitration
c) Adjudication:
It is the last remedial step for the settlement of Industrial Disputes. In RSP the disputes are
sent to the adjudicative authorities by the appropriate govt. after proper examination and
verification such as:
• Labour courts call the cases mentioned in the 2nd schedule of Industrial Dispute
Act.
• Industrial Tribunals call the cases mentioned in II and III schedule of Industrial
Dispute Act.
• National Tribunal call the cases which involve questions of national importance or
are of such a nature that Industrial establishment situated in more than one state
are likely to be interested in or affected by such disputes.

(D) Joint Committees in RSP
 Central Safety Committee –
The Central Safety Committee (CSC) is a statutory requirement under Orissa

Factories Act is functioning at Rourkela Steel Plant comprising Management's
representatives and employees representatives who are basically members of the
recognized union as prescribed under the factory rules.
Orissa Factory rules, 1950 stipulates that the safety committee shall consist of
equal number of representatives of the management and the employees and the
minimum number of representatives shall be 6.
In order to comply the observation of the Inspector of Factories and Boilers,

Rourkela zone -I, Rourkela, there was no scope to include any person who is not
an employee of RSP. Accordingly, the CSC was reconstituted on 2003 and 2004.
To improve safety consciousness and make the movement broad based, 9 "Safety
committees of Departments" zone wise, have been constituted covering all the
areas of the Integrated Steel Plant as well as Township.
 Central Consultative Committees (CCC) -
In addition to the measures taken for implementation of various activities

concerning welfare, cleanliness, punctuality, system improvement etc. further
steps were taken to have broad based discussion on consultations on the aforesaid
aspects and other allied issues by involving other employees forms and important
groups to improve production and productivity.
All registered trade unions who had participated in the verification of membership
through secret ballot in RSP were called upon to participate in discussions at
routine intervals with a Central Consultative Committee constituted by the
management representing various departments to improve welfare, safety and
other amenities concerning employees.

 Canteen Managing Committee (CMC) -
Under secretary of govt. of Orissa Labour and employment dept. vide his letter
dated 03.12.1998 intimated that the members of the canteen managing committee
are decided to be nominated from amongst the workers of the factory belonging to
the recognized union instead of conducting election through secret ballot system.
Reconstitution / change of members has been done on several occasions from time
to time and the committee is functioning smoothly.
The manager of the factory has the right to nominate the members from among the
workers of the factory belonging to the recognized union to the CMC. The CMC
was last reconstituted on 16.02.2004 and the melting of the CMC is held from time
to time and functioning smoothly.
(E) Works Standing: Order
Works Sanding Order provides the frame work to an organisation. This is a booklet
containing company's rules, regulations, procedures in accordance with section 7 of the
industrial employment (Standing Order Act, 1946).
Works Standing Order of RSP contains certain provisions, rules and regulations regarding
leave, misconduct, strike, lockout, holdings, discharge, dismissal, deductions, fines,
complaints, overtime, resignation, P .F ., stoppages etc which provides a systematic
procedure to maintain industrial relations. In other words we can say that Works Standing
Order is basically needed to secure and promote better industrial relations.
(F) Suggestion Scheme
Motivation and Moral is also helped through an appropriate suggestion scheme. For
example the suggestion scheme is described as partnership for progress scheme at RSP.
According to the company, it has helped in boosting the employee's moral under this
scheme. Some cash awards are offered to employees who come up with practical ideas to:
-

1. Increase in production, higher productivity, improvement in production.
2. Improvement in methods machinery, equipment or tools process layout,

practices and procedure.
3. Reduction in cost wastage or spoilage.
4. Reduction in frequency of idle time or repair and maintenance of

machinery, equipment tools etc, removal of hazards to health and
possibility of accident.
5. Increase in utility, equality, yield or output of products.
6. Conservation of materials energy, times in process or their utilization for

better purpose.
(G) AWARDS FOR LONG TERM SERVICES:-
The company has a provision to make an award to the person for long service sometimes
in money, a deal or in kind. If an employee has completed 25 years of continuous services
he becomes eligible for long service award of 25 years service. It is a silver medal and a
dinner set or a specific amount.
TRADE UNION:
According to Data Yoder, "A Trade Union is a continuous association of Wage - learners
for the purpose of maintaining or improving the conditions of their work life."
The recognition of Trade Union in Rourkela Steel Plant is conducted by rules for
verification of membership and recognition of Trade Union's through secret ballot in
industry .The Rourkela Sramika Sangha (RSS) affiliated to Indian National Trade Union
Congress (INTUC) has been recognized as the sole bargaining agent for all RSP
employees at Rourkela falling in the union spheres and the union existing in RSP. The
other trade unions other than RSS are:

1. RMS -Rourkela Majdoor Sangha
2. SETU
3. RIKKS
4. RWU -Rourkela Workers Union
5. SEAR
6. ILU - Ispat Labour Union
7. HSWA -Hindustan Steel Workers Association
8. KISS -Kalinga Ispat Sramika Sangha
9. JMS -Jharkhand Majdoor Sangha
10. RSP -Rourkela Sramika Panchayat
The recognized union in RSP is given the following facilities: -
• An office outside the premises of the industry with minimum fittings and fixtures,
electricity and water supply, free of cost
• Adequate number of office furniture one for all for office purpose.
• Wherever possible, one internal telephone connection to the union office and at
least two connections to the office bearers who are employee of industry or
establishment and reside in the country's township.
• To provide transport for the office bearers of the union then called for discussion
by the employer at places other than in the industry an allow TA/DA to such
personnel as per their entitlement treating the day shift discussion as on duty.

• To allow minimum of two representations to at least conciliation, arbitration and
adjudication cases in their cost.
All Registered Trade Unions who had participated in the verification of membership
through secret ballot in RSP were called upon to participate in the discussion at routine
intervals with a central consultative committee constituted by the management
representing various departments to improve welfare safety and other amenities
concerning employees.
INDUSTRIAL DISCIPLINE:
The word 'DISCIPLINE' connotes that the number of a group should reasonably
conformed. Webster's dictionary gives three meanings of the word discipline. First it is the
training that corrects moulds, strength or profit. Secondly it is the control gained by
enforcing obedience. Thirdly it is essential for the smooth running of industrial peace
which is the very foundation of industrial democracy.
In RSP all the settlement machineries are there to deal with causes of misconduct. With
impartiality and fairness has been introduced in the works standing order which as a
whole provides abetter discipline in the company.

NEW TRENDS OF INDUSTRIAL RELATION :-
The march of RSP towards profit after sustaining loss for last several years is now
noticeable from its result oriented performance, during 2003 -2004. The combined efforts
of all its employees and officers under the leadership of the managing director have made
the turnaround of RSP a successful phenomenon. This is now being sustained and
improving continuously.
Mass Contact Exercise
This meeting is popularly known as MCE in RSP. It is a unique procedure prevailing in

RSP conducted by the MD itself. In this meeting the MD interacts with merely 1500
workers every week (Wednesday, for 2 hours ). In this interaction nearly 50 different
employees from all the departments of RSP priorities before the organisation are spilt out
and factors that can pull back the plant from profitability are discussed. In all such
interaction safety of human lives and maintenance of plant machinery and equipment are
focused, the workers also give their suggestion, discuss about their grievances along with
the company's profitability.
Very encouraging results have been achieved from a large number of workshops,
interaction sessions, information sharing meetings and mass contact exercises on the
survival and future of RSP. Workers have started thinking for further improvement of the
plant and have come out with various suggestion many of which have been implemented
such as workers participation in the plant under the aforesaid process has reached its
zenith and all the employees both executives and non executives have thus directly
participated in the decision making process of the management. All this has resulted in
improved work life culture, transparency in administration and an understanding of the
need of hour to make the plants new found profitability a sustainable proposition.
All the above activities are driven by the MD itself under a movement called
"SAMSKAR" which is by itself unique in Indian Corporate history. The SAMSKAR
movement states that: -

"We have to create and sustain a peaceful work environment where every
employee can contribute to the plant in assigned area of work with full freedom and
dignity and without fear."
In addition to the measures taken for implementation of various activities concerning

welfare, cleanliness, punctuality, system improvement etc steps have been taken to have
broad base discussion and considerations on the aforesaid aspects and other allied issues
by involving other employees and other important groups to improve production and
productivity.
Employee Relations and Employee Services at SAIL, RSP

In SAIL employee relations and employee services go hand in hand. Personalised services
to employees improve the employee – employer industrial relationships. The IR scenario
in SAIL has been fairly satisfactory. The concern for human beings transforms itself into
SAIL. Lookiong after the human resource is the main concern, which brings about
credibility and image in the organization.
Employee services in SAIL:
To look after the human resources in
i. Proper recruitment
ii. Efficient training
iii. Looking after promotions, transfers and leaves.
iv. Redressed of grievances
v. Housing and medical facilities.
vi. Recreational facilities.
vii. Other services.
The need is to provide these personalized services with efficiency, speed and dedication. It
is the responsibility of the organization to ensure that individuals get a proper induction to
the organization are trained periodically to do their job.
In SAIL employee relations are improved by:
i. Adopting preventative rather than reactive strategies.

ii. Time bound implementation of unanimous recommendations of Bipartite
forums.
iii. Monitoring of unproductive work practices.
iv. Better administration of welfare facilities.
MANPOWER SUMMARY OF RSP: -
It is no wonder that today the total workforces of RSP i.e. about 22000 employees are
committed like never before to profitability and prosperity, meaning thereby the
profitability for the steel plant and prosperity for the employees as well as those who
depend on it for a livelihood.
YEAR WORKS
EXECUTIVES NON-EXECUTIVES TOTAL
2004 - 2005 1381 16292 18610
2005 - 2006 1465 16345 17810
2006 - 2007 1445 15949 17394
2007 - 2008 1361 15534 16895
2008 - 2009 1303 15199 16502

YEAR NON-WORKS
2004 - 2005 704 3977 4681
2005 - 2006 831 3656 4487
2006 - 2007 765 3521 4286
2007 - 2008 820 3459 4279
2008 - 2009 804 2886 3690
YEAR WORKS & NON-WORKS
2004 - 2005 2085 20906 22991
2005 - 2006 2296 20001 22297
2006 - 2007 2210 19470 21680
2007 - 2008 2181 18893 21174
2008 - 2009 2107 18085 20192

1. How is your relation with the management?
Question Good Bad
Number of Respondents 32 18
Percentage 64 36
Chart – 1
70
60
50
40
Number of Respondents
30 Percentage
20
10
0
Good Bad
Interpretation
From the above chart it is clear that 70 percent of the workers have good relations with the
management where as rest 30 percent of the employees do not have such good relation.

2. Are you satisfied with your salary?
Question Yes No
Percentage 84 16
Chart – 2
90
80
70
60
50
40
Percentage
30
20
10
0
Yes No
Interpretation
Most of the workers are well satisfied with the salary being provided to them but rest 16
percent are not satisfied.

3. Are you satisfied with the mass contact programme held in RSP?
Question Yes No
Percentage 70 30
Chart – 3
70
60
50
40
30 Percentage
20
10
0
Yes No
Interpretation
Most of the workers are of the opinion that they are well satisfied with the interaction
programme held between the MD and the workers and rest 30 percent are not satisfied
with the mass contact exercise being conducted at RSP.

4. How are the services provided towards medical and health facilities?
Question Yes No Average Bad
Number of Respondents 13 18 17 2
Percentage 26 36 34 4
Chart – 4
Very Good
Good
Average
Bad
Interpretation
This chart clearly shows that most percentages of workers are satisfied with the services
provided by RSP but only a little percentage of workers are not satisfied.

5. Are you satisfied with training provided by the safety departments
Question Yes No
Percentage 78 22
Chart – 5
80
70
60
50
40 Number of Respondents
30 Percentage
20
10
0
Yes No
Interpretation
About 78 percent of the workers believe that they are satisfied with the training provided
by the safety departments and rest 22 percent are not satisfied.

6. Do you feel workers participation in management is a healthy provision for
bringing harmonious relationship in the industry?
Question To Great Extent To some Extent Not at all
Number of Respondents 13 18 17
Percentage 26 36 34
Chart – 6
To Great Extent
To some extent
Not at all
Interpretation
Most of the workers feel their participation in management develop healthier relation with
the management and a small percentage doesn’t think so.

7. Do you feel having good relationship with the management the efficiency of
worker is increased
Percentage 26 36 34
Chart – 7
To Great Extent
To some extent
Not at all
Interpretation
About 68 percent of workers believe that their efficiency is increased by having good
relationship with the management

8. Are you satisfied with your salary?
Question Yes No
Percentage 90 10
Chart – 8
90
80
70
60
50
40
Percentage
30
20
10
0
Yes No
Interpretation
90 percent of the workers believe that they are satisfied with the salary provided to them
by RSP.

9. How is the incentive bonus scheme working in the plant?
Question Very Good Good Average Poor
Chart – 9
Very good
Good
Average
Poor
Interpretation
About 66 percent of workers are in the opinion that the incentive bonus scheme working
in the plant is good.

10. How do you feel about the existing grievance handling system?
Question Very Good Good Average Poor
Chart – 10
Very good
Good
Average
Poor
Interpretation
About only 60 percent of the workers feel that the existing grievance handling system in
RSP is good.

1. Do you feel good relationship amongst the employees in RSP?
Question Good Bad
Percentage 86 14
Chart – 1
90
80
70
60
50
40
Percentage
30
20
10
0
Yes No
Interpretation
About 86 percentage of management believe that good relationship exist among the
employees of RSP

2. Does good relations affect achievement in your organization
Question Yes No
Percentage 84 16
Chart – 2
Always
Sometimes
never
Interpretation
Most of the workers are well satisfied with the salary being provided to them but rest 16
percent are not satisfied.

3. Do you feel by good relationship the efficiency of worker is increased?
Question Yes No
Percentage 86 14
Chart – 3
90
80
70
60
50
40
Percentage
30
20
10
0
Yes No
Interpretation
About 86 percent of employees are of the opinion that by creating good relationship the
efficiency of worker is increased.

4. According to you, how is the relationship between union and management in RSP?
Question Good Average Poor
Percentage 66 28 6
Chart – 4
Very Good
Good
Average
Bad
Interpretation
It is clear from the above chart that about 66 percent of employees believe that the
relationship between union and management is good.

5. How is the relationship between management and workers
Question Good Average Poor
Percentage 50 40 10
Chart – 5
Good
Average
Poor
Interpretation
From the above it is clear that 50 percent of employees feel that the relationship between
management and workers is good. Another 40 percent of employees feel that the
relationship is average.

6. Is the management able to satisfy the workers in RSP?
Question Almost To some Extent Not at all
Percentage 36 58 6
Chart – 6
Almost
To some extent
Not at all
Interpretation
From the above chart it is justified that most of the workers are well satisfied with the
management in RSP.

7. Are you getting satisfaction out of your job?
Percentage 74 22 4
Chart – 7
To Great Extent
To some extent
Not at all
Interpretation
About 74 percent of employees are satisfied with their job to a great extent and 22 percent
of employees are satisfied with their job to small extent.

8. Do you think there is over employment in RSP?
Percentage 4 16 80
Chart – 8
To Great Extent
To some extent
Not at all
Interpretation
About 80 percent of employees are of opinion that there is no over employment.

9. Do you feel workers participation in management is a healthy provision for
bringing harmonious relationship within Industry?
Question Yes No
Percentage 92 8
Chart – 9
100
80
60
40 Percentage
20
0
Yes No
Interpretation
It is clear from above that about 92 percent of employees believe that worker participation
in management is a healthy provision for bringing harmonious relationship within an
industry.

10. Do you discuss with the workers and take their suggestions to solve the problems
and other matters?
Question Yes Sometimes No
Percentage 68 28 4
Chart – 10
Yes
Sometimes
No
Interpretation
Out of 50 respondents about 34 respondent have discussion with the workers related any
problem or their suggestion, rest 14 sometimes have discussion at the time of their need.

11. Do you think that workers of RSP are getting great benefits in relation to
management?
Question Yes No
Percentage 78 22
Chart – 11
80
70
60
50
40 Number of Respondents
30 Percentage
20
10
0
Yes No
Interpretation
About 78 percent of employees of RSP believe that they are getting benefits in relation to
the management

12. Do you have a good understanding of this organization’s goals and objectives
Question Yes No
Percentage 86 14
Chart – 12
90
80
70
60
50
40
Percentage
30
20
10
0
Yes No
Interpretation
About 86 percent of the employees feel that they have a good understanding of this
organization’s goals and objectives.

EEFFCTS OF POOR INDSTRIAL RELATIONS
Poor Industrial Relation produces highly disquieting effects on the economic life of the
country. We may enumerate the ill-effects of poor Industrial Relations as under:
1. Multiplier effects: Modern industry and for that matter modern economy are
interdependent. Hence although the direct loss caused due to industrial conflict in
any one plant may not be very great, the total loss caused due to its multipliers
effect on the total economy is always very great.
2. Fall in normal tempo: poor Industrial Relations adversely affect the normal tempo
of work so that work far below the optimum level. Costs build up. Absenteeism
and labor turnover increase. Plants discipline breaks down and both the quality and
quality of production suffer .
3. Resistance of change: Dynamic industrial situation calls for change more or less
continuously. Methods have to be improved. Economics have to be introduced.
New products have to be designed, produced and put in the market. Each of these
tasks involves a whole chain of changes and this is resisted bitterly if these are
industrial conflict.
4. Frustration and social cost: every man comes to the work place not only to earn a
living. He wants to satisfy his social and egoistic needs also. When he finds
difficulty in satisfying these needs he feels frustrated. Poor Industrial Relations
take a heavy toll in terms of human frustration. They reduce cordiality and
aggravate social tension.

PROBLEMS OF INDUSTRIAL RELATION:
 Due to surplus of manpower in Rourkela Steel Plant labour productivity could not be
achieved at the desired level which creates some problems in Industrial Relation
situation of RSP.
 A good number of employees had been recruited earlier are not fit for that posts in
which they are in now so they are unable to understand the practical scenario, which
become an obstacle in Industrial Relation of RSP .
 Multiplicity of trade unions also poses a problem.
 Sometimes terrible situations create due to some misunderstanding between

management and worker by Trade Union.
 Rigid labour legislation delay in disposal of grievances causes harassment for the
workers.
A VIEW FROM WORKERS AND MANAGEMENT
We have conducted an interview through questionnaire method and collected some

information regarding suggestions to improve healthier Industrial Relation in RSP from
worker management and union as well.
Workers suggest that:
There should be awareness programmes to be organized by he management in respect of

the benefits of good relationship and better future.
Union Representatives suggest that:
Vandalism in name of trade unions should not be tolerated within the working premises of
Rourkela Steel Plant.

Management suggests that:
There should be proper co-operation between management and workers. Workers should
help the management in decision making process so that the Industrial Relation situation
and productivity of Rourkela Steel Plant is better possible.

SUGGESTIONS
 Both management and unions should develop constructive attitudes towards each
other .
 All basic policies and procedures relating to Industrial Relation should be clear to
everybody in the organization and to the union leader. The personnel manager
must make certain that line people will understand and agree with these policies.
 The personnel manager should remove any distrust by convincing the union of the
company's integrity and his own sincerity and honesty. Suspicious, rumors and
doubts should all be put to rest.
 The personnel manager should not vie with the union to gain workers' loyal to
both the organization. Several research studies also confirm the idea of dual
allegiance. There is strong evidence to discard the belief that one can owe
allegiance to one group only.
 Management should encourage right kind of union leadership. While it is not for
the management to interfere with union activities, or choose the union leadership,
its action and attitude will go a long way towards developing the right kind of
union leadership. "Management gets the union it deserves" is not just an empty
phrase.
 Some awareness programmes should be arranged so as to avoid the ignorance of

illiterate workers.
 Both the management and workers should shoulder their responsibilities properly
in order to minimize burden over a few mass.
 The grievances of workers should be taken into consideration individually to free

them from mental anguish and allow them to work without any hesitation.

 Workers should be given chances to show their creativity and talent before
management and must be rewarded for that.
 The union for their interest workers often shows that the management is superior
and there is a large gap between them so this type of wrong notion should be
confirmed to them.
 The management should give fair and prompt decision to the workers so that they
don't favour to knock the doors of court of law.
 The workers must also be co-operative to their management and help them in
achieving the profit of the company.

CONCLUSION
The study that has been conducted has resulted in justifying a wide scope for further
research and analysis in this field within the organization. It has been witnessed that RSP,
has grown by leap and bounds and its facilities and policies are world class in comparison
to other steel company in India. Before the year 2002, Rourkela Steel Plant suffered
continuously from huge loss and was unable to provide maximum benefits to its workers.
There by increasing the quality and quantity of production this organisation tried to create
its existence in this competitive steel world. After this the management and worker both
sweat for the sake of Industry as well as for themselves. From last 3 years RSP is gaining
profit and is doing well for the betterment of the employees like extending its welfare and
health facilities to a greater extent.
A very healthy and friendly atmosphere is developed within its premises. The workers
directly interact with the management for their grievances and other matters through Mass
Contact Exercise. Even the management is looking forward with some proactive actions
in order to avoid strikes, lock-out or any type of other violent situation. Due to this the
interference of unions are gradually loosing their value.
RSP is always trying to facilitate the self respect and dignity of its employees. Both the
executives and non executives are cent percent efficient. RSP take a lot of care not only of
it employees but also their families. Nowadays it has become a proud for the whole
democratic nation and each one of them wants to be a proud member of it.
It has also been seen that there has been a sincere effort on the part of RSP to provide the
best possible solutions for their growth and development, both personally and
professionally. There is a clear understanding of the way each individual's contribution is
related in regarding the achievements of the organizational goals. The researcher has
provided a glimpse of the RSP industrial relation in the study and through a few humble
suggestions hope to provide a few possible solution in order to enhance the work
experience and employee's morale in RSP .

RSP is considered to be the turning point in the history of Indian Steel Company. In the
major leap forward, RSP has not adhered the need for self sufficiency in steel but also
given the country a technological edge in producing this strategic metal as per the world
standard. With consistent track record in capacity utilization, technology absorption,
quality assurance, export performance and posting of profits, RSP is a bright example of
India's industrial capacity. And keeping the present scenario in the view it can be
concluded that RSP is the torch bearer among all sections in the never ending path of
success.

BIBLIOGRAPHY
During my summer training period I have collected the required information’s from the
following books and journals:
1. Industrial Relation (A.M. Sharma)
2. Industrial Relation (C.S.D. Venkat Ratnam)
3. Industrial and Labour Laws (P.L. Mallick)
4. Rourkela Steel Plant Panoroma
5. Personnel Manual of RSP, Vol. – 1 & Vol. – 2
6. www.sail.org

Introduction of Industrial Relation

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Introduction of Industrial Relation

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CONTENTS

• Company profile of SAIL

• Industrial Relation in RSP

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• Joint Committees in RSP

• Questionnaires for Workers and Management

• Effects of poor Industrial Relation

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Dayananda Sagar Business Academy

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• According to TEAD and METCALFE:-

• According to DALE YODER:-

• According to ALLAN FLANDER:-

"The subject of industrial relations deals with certain regulated or institutionalized

• According to Professor CLEGG:-

From the above definitions we find Industrial Relations as:-

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OBJECTIVES OF INDUSTRIAL RELATION :-

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

D. To establish and nurse the growth of an Industrial Democracy based on labor

E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by

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G. Improvements in the economic conditions of workers in the existing state of

I. Socializations or rationalization of industries by making he state itself a major

COMPONENTS OF INDUSTRIAL SYSTEM:-

I) PARTICIPANTS: The participants in the industrial relations sphere are composed

a. Employee Relation - It includes the complex relationship among the

b. Labour Relation - It includes the relationship between management and

c. Public Relation - It includes the relationship of industry with the entire

2) ISSUES: The power interactions of the participants in a workplace create

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4) BOUNDARIES: In systems analysis, it is possible to find an issue which one

ASPECTS OF INDUSTRIAL RELATION

The main aspects of Industrial Relations are:-

i. Labor Relations, i.e. relations between union and management.

ii. Employer-employees relations, i.e. relations between management and employees.

iii. Group relations, i.e. relations between various groups of workmen.

v. Promotions and development of healthy labor-managements relations.

vi. Maintenance of industrial peace and avoidance of industrial strife

vii. Development of true industrial democracy.

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A few notable features pertaining to Industrial Relations are as under:

1. Industrial Relation do not emerge in vacuum they are born of employment

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1. Institution: It includes government, employers, trade unions, unions federations or

3. Methods: Focus on collective bargaining, workers' participation in the Industrial

4. Contents: Includes matter pertaining to employment conditions like pay, hours of

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6. Economic satisfaction of workers: Psychologists recognize that human needs

7. Social and Psychological satisfaction: Identifying the social and psychological

8. Off-the-Job Conditions: An employer employs a whole person rather than certain

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10. Negotiating skills and attitudes of management and workers: Both

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Dayananda Sagar Business Academy

o Personnel working within the premises of RSP

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The importance of this study is:-

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Dayananda Sagar Business Academy

MAJOR UNITS OF SAIL:

A. INTEGRA TED STEEL PLANTS

1. Bhilai Steel Plant (BSP) in Chhattisgarh

B. SPECIAL STEEL PLANTS