case study in industrial relations

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ELGi Equipments: Revolutionizing Industrial Relations Through a Win-Win Strategy

By: Debolina Dutta, Biju Varkkey

ELGi transformed from a small family-run manufacturer of compressors and pumps to a global player through multiple initiatives based on improving the quality of their product and the productivity of…

• Length: 17 page(s)
• Publication Date: Sep 1, 2023
• Discipline: Human Resource Management
• Product #: IMB983-PDF-ENG

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The case study discusses ELGi Equipments Limited, a compressor manufacturing company based in Coimbatore, India, and its innovative approach to maintaining Industrial Relations (IR)/ Employment Relations (ER) and workforce development. The case showcases how ELGi incorporated employees' aspirations into its Human Resource Management (HRM)/IR policies and practices.

ELGi transformed from a small family-run manufacturer of compressors and pumps to a global player through multiple initiatives based on improving the quality of their product and the productivity of their workforce over two decades. They adopted an innovative approach to improve their blue-collar workforce's lifestyle and income levels, linked to worker upskilling, increasing job autonomy, and a radical approach to wage agreement. Previously, wage negotiations for ELGi workers were unpredictable and without a clear structure. The process took time and was ad hoc. Dr. Jay, the promoter family member, did not subscribe to the traditional approach of keeping labor wages low and benefiting from the wage arbitrage followed by global subsidiaries in India and other Indian manufacturing companies. He wanted Indian workers to earn competitive wages, almost equal to what blue-collar workers in the West make and become globally competitive. Hence, a "basket of goods" approach to wage fixing was introduced in 1996 to ensure a good lifestyle for workers and their families. This approach linked consumption to compensation and was determined based on the needs of a family of four. Moreover, the company acknowledged the importance of enhancing worker motivation in order to remain competitive on a global scale. By defining a basket of goods as "must have" and "good to have", which was collaboratively developed between the workers, their families, and the management, they periodically expanded the basket items over multiple years. Additionally, with organization-based profit-sharing schemes, suggestion schemes, and career progression mechanisms, ELGi built a dedicated, motivated, and engaged workforce. Furthermore, the practice of keeping workers as contingent workers for long periods was changed to offer permanency for workers completing over three years based on their performance feedback.

A novel approach to sustainable talent acquisition and workforce development ensures that a steady pipeline of culturally well-indoctrinated talent is available to the firm. In an environment where unions mediated blue-collar relationships with the management, ELGi's model was radical but proved more effective in developing a win-win approach to Industrial Relationship Management.

Learning Objectives

The key topics covered in this case study include understanding the outcomes of HRM practices in strengthening IR, establishing strategic pay plans through collective bargaining in a non-unionized environment, training, learning and development, and talent acquisition and retention. This case raises the following crucial questions about worker relationships within manufacturing organizations:

• What methods should leaders implement to inculcate a collaborative and win-win IR environment that aligns with the interests of the employees as well as the organization?

• How should organizations balance near-team HR interventions and future skill planning?

• What are the advantages and disadvantages of the "must-have versus a good-to-have basket of goods" approach in wage settlements?

• What could be some of the unintended consequences of adopting Agile talent management approaches to be future-ready?

Sep 1, 2023

Discipline:

Human Resource Management

Geographies:

Industries:

Fabrication and manufacturing, Industrial sector

Indian Institute of Management-Bangalore

IMB983-PDF-ENG

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Industrial Relations and Increasing Globalization: A Case Study of India

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• C. S. Venkata Ratnam  

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This chapter briefly traces some of the key issues and trends in industrial relations in the wake of globalization, with particular reference to India. Specifically it deals briefly with (1) the historical development of industrial relations and the corresponding legal framework in the country, (2) examines the impact of liberalization on industrial relations in the context of increasing globalization, (3) discusses employment, employment security and social safety nets, (4) key issues concerning multinationals, privatization and export processing zones, (5) new approaches to work organization, (6) international labour standards, (7) recent trends and developments in collective bargaining, workers’ participation, labour laws and industrial relations, and (8) finally discusses the role of trade unions, employers organizations and the government in developing systems of industrial relations.

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Johri, C.K. (1992) Industrialism and Industrial Relations in India . New Delhi: Oxford University Press.

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Ratnam, C.S.V. (2003). Industrial Relations and Increasing Globalization: A Case Study of India. In: Richter, FJ., Banerjee, P. (eds) The Knowledge Economy in India. Palgrave Macmillan, London. https://doi.org/10.1057/9780230512986_13

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Industrial Relations at Cummins India Limited- A Case Study

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The significance of industrial relations can be summarized as below: 1. It establishes industrial democracy: Industrial relations means settling employees problems through collective bargaining, mutual cooperation and mutual agreement amongst the parties i.e., management and employees' unions. This helps in establishing industrial democracy in the organization which motivates them to contribute their best to the growth and prosperity of the organization. 2. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income. This will result in economic development of the economy. 3. It improves morale of he work force: Good industrial relations, built-in mutual cooperation and common agreed approach motivate one to contribute one's best, result in higher productivity and hence income, give more job satisfaction and help improve the morale of the workers. 4. It ensures optimum use of scare resources: Good and harmonious industrial relations create a sense of belongingness and group-cohesiveness among workers, and also a congenial environment resulting in less industrial unrest, grievances and disputes. This will ensure optimum use of resources, both human and materials, eliminating all types of wastage. 5. It discourages unfair practices on the part of both management and unions: Industrial relations involve setting up a machinery to solve problems confronted by management and employees through mutual agreement to which both these parties are bound. This results in banning of the unfair practices being used by employers or trade unions. 6. It prompts enactment of sound labour legislation: Industrial relations necessitate passing of certain labour laws to protect and promote the welfare of labour and safeguard interests of all the parties against unfair means or practices. 7. It facilitates change: Good industrial relations help in improvement of cooperation, team work, performance and productivity and hence in taking full advantages of modern inventions, innovations and other scientific and technological advances. It helps the work force to adjust themselves to change easily and quickly Causes of Poor Industrial Relations Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour unrest is mental laziness on the part of both management and labour. Management is not sufficiently concerned to ascertain the causes of inefficiency and unrest following the laissez-faire policy, until it is faced with strikes and more serious unrest. Even with regard to methods of work, management does not bother to devise the best method but leaves it mainly to the subordinates to work it out for themselves. Contempt on the part of the employers towards the

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Please note you do not have access to teaching notes, industrial relations climate: a case study approach.

Personnel Review

ISSN : 0048-3486

Article publication date: 1 March 1979

The industrial relations climate of a steelworks was investigated through a programme of structured interviews with shop stewards and managers at all levels. Interviewees were asked how often they handled different types of industrial relations issues, how often they interacted with their opposite numbers at different levels to solve those problems, how satisfied they were with the way each of the problems were handled and, how satisfied they were with their opposite numbers' handling of industrial relations problems generally. Results shows that there was union‐management agreement about the nature of the local climate, but that the climate differed across departments in accordance with data from independent sources. The findings also indicated that in this plant the climate was more ‘issue‐centred’ than ‘person‐centred’. It was concluded that the technique could be similarly useful in other settings for the speedy appraisal of industrial relations at plant level, but that more comparative research on industrial relations climate was needed.

Nicholson, N. (1979), "Industrial Relations Climate: A Case Study Approach", Personnel Review , Vol. 8 No. 3, pp. 20-25. https://doi.org/10.1108/eb055386

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Case Study on Industrial Relations

Industrial relations case study:.

Industrial relations are the set of disciplines which research the relations between employees.Industrial relations are scrupulously analyzed by professionals, because these relations influence the quality of work, job satisfaction, development of business and economics greatly. First of all, relations are characterized with the information about the duties and rights of the employees. They have to know what they are expected to do and what they can do if there is a certain problem with a boss or manager.

Much attention is paid to the ethical side of industrial relations, because emotional well-being and healthy working atmosphere are often the key factors which influence the quality of work. Smart businessmen should be aware about the principles of the industrial relations in order to carry out the policy of human resource management professionally.These two branches are interconnected and an experienced boss should be good at both. The study researches various problems which can occur in the workplace, between employees and the boss and a good manager is expected to know how to solve these problems effectively. Industrial relations research employees, their work and ambitions from different sides: economical, psychological and professional.

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Evidently, psychological health is extremely important for the development of business and quality of work, otherwise, there will be only protests, scandals and disagreement towards the methods and conditions of work.Industrial relations are aimed to make employee’s life better, more convenient, inform him about his rights, if a trouble occurs. A student who wants to investigate the topic on industrial relations should read a lot about the nature of the problem. High-quality textbooks, encyclopedias and periodicals will be helpful to complete the case study well. A case is a problem, failure which happened at a company and is closely connected with industrial relations. For example, if the rights of employees have been violated or an incident in the group of employees happened, a student will be asked to find the cause and effect of the problem and analyze the case from all sides.

Every student who prepares a case study is expected to provide the reader with wise solutions to the problem to show their professional and critical thinking skills.The problem of case study writing is quite complicated for inexperienced students, so they often need to take advantage of the web to complete their paper successfully. A free example case study on industrial relations in India will be a useful source of data and a lesson of proper way of analysis, because will explain the problem on the concrete situation, concrete time and place. Moreover, a free sample case study on industrial relations management will teach young people how to organize the paper according to the required standards and style of writing.

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