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1. INDUSTRIAL RELATIONS MAMORIA & GANKAR LESSON TOPICS NO. 1 1. SCOPE, DEFINITION & OBJECTIVES OF IR 2. IMPACT OF IR ON SOCIO-ECONOMIC CONDITIONS 2 1. ROLE OF…
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  • 1. INDUSTRIAL RELATIONS MAMORIA & GANKAR LESSON TOPICS NO. 1 1. SCOPE, DEFINITION & OBJECTIVES OF IR 2. IMPACT OF IR ON SOCIO-ECONOMIC CONDITIONS 2 1. ROLE OF JUDICIARY & ITS IMPACT ON IR 3 1. MACHINERY FOR SETTLEMENT OF DISPUTES AT THE LEVEL OF CENTRAL / STATE GOVERNMENT MACHINERY UNDER ADJUDICATION WITH LANDMARK JUDGMENTS GIVEN BY HIGH / SUPREME COURTS FROM TIME TO TIME 4 1. CONCEPTS OF COLLECTIVE BARGAINING 2. IT’S SUCCESS & FAILURE 3. ITS CAUSE 4. CRITICAL REVIEW 5 1. WORKERS PARTICIPATION IN MANAGEMENT – ITS PRACTICALITY AT OPERATIONAL LEVEL 6 1. TRADE UNION MOVEMENT IN INDIA AFTER INDEPENDENCE 2. PROBLEMS FACED BY TRADE UNION UNIONS DUE TO INTRA & INTER UNION RIVALRY 3. POLITICAL AFFILIATIONS OF TRADE UNIONS – MERITS & DEMERITS 7 1. PROBLEMS OF FORMING UNIONS IN UNORGANISED SECTORS 2. LABOUR MANAGEMENT RELATIONS IN ORGANIZED SECTOR 8 1. SALIENT FEATURES OF TRADE UNION ACT 9 1. IMPACT OF GLOBALISATION & INFORMATION TECHNOLOGY ON IR 10 1. GRIEVANCES 2. DISCIPLINE HRD IN PERSPECTIVE:  TRADITIONALLY THREE FACTORS OF PRODUCTION WERE IDENTIFIED: o LAND o CAPITAL o LABOUR
  • 2.  IN PRE-INDUSTRIAL SOCIETY AGRICULTURE WAS THE MAJOR SOURCE OF WEALTH. CAPITAL & LABOUR WERE WEDDED TO LAND, & ECONOMIC POWER BELONGED TO THOSE WHO COULD CONTROL IT USE  WITH INDUSTRIAL REVOLUTION CAPITAL BECAME THE CRITICAL FACTOR OF PRODUCTION  INDUSTRIALISATION BROUGHT ABOUT DRASTIC CHANGES IN THE WORKING METHODS, MANPOWER MANAGEMENT RELATIONS ON THE SHOP FLOOR  WITH TECHNOLOGICAL ADVANCEMENTS, THE USE OF OUT WORKERS [PEOPLE WORKING AT THEIR HOMES WITH THEIR OWN TOOLS / MACHINES] DECLINED & FACTORY SYSTEM GRADUALLY STARTED SETTING. THE OWNERS PROVIDED MACHINERY; MEANS OF PRODUCTION & PREMISE & WORKERS SUPPLIED THEIR LABOUR.  THIS LED TO TWO DISTINCT CLASSES: o CAPITALIST CLASS o WORKING CLASS  THE CAPITALIST CLASS BECAME MORE POWERFUL AS IT PROVIDED IMPORTANT INPUT OF PRODUCTION. IN THE INITIAL STAGES OF INDUSTRIALISATION, THE WORKERS WERE LARGELY UNTRAINED, UNEDUCATED & UNORGANISED; HENCE DID NOT RECEIVE FAIR DEAL AT THE HANDS OF EMPLOYERS  IN THE EARLY STAGES OF INDUSTRIALISATION, THE TRENDS WHICH DOMINATED THE SCENE WERE: o LOSS OF FREEDOM  HAD TO WORK UNDER DISCIPLINE  PLACE OF WORK WAS DETERMINED BY MACHINES  IN WORKING CONDITIONS [REST INTERVALS, HOLIDAYS, WAGES ETC. HAD LITTLE SAY o UNHYGIENIC WORKING CONDITIONS  WORK ENVIRONMENT IN THE FACTORIES WAS EXTREMELY UNHYGIENIC & UNHEALTHY  LITTLE ATTENTION WAS PAID TO HEALTH & SAFETY OF WORKERS  VENTILATION / ILLUMINATION WAS POOR  SANITARY CONDITION WAS DEPLORABLE o EMPLOYMENT OF CHILDREN
  • 3.  PARTLY DUE TO ECONOMIC NECESSITY & PARTLY DUE TO THE PRESSURE OF EMPLOYERS THE WORKERS WERE FORCED TO PUT THEIR CHILDREN TO EMPLOYMENT  THERE WAS NO DIFFERENCE IN THE HOURS OF WORK & THE OTHER WORKING CONDITIONS OF BOTH CHILD & ADULT WORKER  IN THE EARLY NINETEENTH CENTURY THE DOCTRINE OF LAISSEZ FAIRE WAS IN VOGUE WHICH HAD THE FOLLOWING FEATURES: o FREEDOM OF CONTRACT  PARTIES TO CONTRACT WERE FREE TO LAY DOWN THE TERMS & CONDITIONS OF CONTRACT WITHOUT ANY INTERVENTION FROM THE THIRD PARTY  UNDER SUCH CONDITIONS THE WEAKER PARTY WAS FORCED TO ACCEPT THE DICTATE OF THE STRONGER ONE o THE DYNAMICS OF MARKET  THE ECONOMIC DOCTRINE BELIEVED THAT DYNAMICS OF MARKET REVOLVE ROUND ECONOMIC FORCES; HENCE THEY SHOULD BE LEFT TO REGULATE THEMSELVES WITHOUT ANY INTERVENTION  THE FORCES OF DEMAND & SUPPLY DETERMINE THE PRICE AT WHICH PARTIES WOULD STRIKE THE DEAL IF THE SUPPLY OF LABOUR EXCEEDS DEMAND THEN THE WAGES OF WORKERS ARE BOUND TO BE LOW  THEREFORE AS SUCH ANY INTERFERENCE EITHER BY GOVERNMENT & OR TRADE UNION WAS RESISTED o THE PURSUIT OF SELF-INTEREST  THE BEST INTEREST OF EVERYONE CAN BE BEST SERVED BY LETTING THE PARTIES TO ACT IN THEIR OWN INTEREST  THE SELF-INTEREST WOULD MOTIVATE THE PEOPLE TO BECOME A TRADER, EMPLOYEE, EMPLOYER ETC. THEREFORE ANY INTERFERENCE BY THE THIRD PARTY WOULD BE ADVERSELY AFFECT THE INTEREST OF EVERYONE  ANOTHER ASPECT OF LAISSEZ FAIRE WAS DIVISION OF LABOUR
  • 4.  IN THE MIDDLE OF NINETEENTH CENTURY WITH THE ADVANCEMENT OF MANAGERIAL TECHNOLOGY, INCREASED COMPLICATION OF WORK METHODS, IR SYSTEM STARTED SHAPING UP  IN THE LATE NINETEENTH CENTURY, THE EMERGENCE OF POST INDUSTRIAL SOCIETIES, THE ROLE OF HR AS A FACTOR OF PRODUCTION HAS BEEN GIVEN DUE IMPORTANCE.  THE DEMAND FOR SKILLED WORKER IS GAINING MOMENTUM  HUMAN BEINGS ARE THE ACTIVE AGENTS WHO ACCUMULATE CAPITAL, EXPLOIT NATURAL RESOURCES, BUILD SOCIAL ECONOMIC & POLITICAL ORGANIZATIONS, & CARRY FORWARD NATIONAL DEVELOPMENT.  THEREFORE THE WELFARE & DEVELOPMENT OF HAPPY IR ARE FUNDAMENTAL PERQUISITES FOR SHIFTING ECONOMIC PARADIGM TOWARDS GREATER PROSPERITY IMPACT OF IR:  TECHNOLOGY HAS ACCELERATED HE PROCESS OF CIVILIZATION. THE TRANSGRESSION OF HOMOSAPIANS FROM CAVE AGE TO INFORMATIONAL AGE IS A LIVE EXAMPLE OF INDUSTRIAL REVOLUTION ON HUMAN LIVES OVER THE LONG PAST  THE PACE WITH WHICH TECHNOLOGICAL DEVELOPMENTS ARE TAKING PLACE, WE CAN SAY THAT THE WORLD IS LEADING TOWARDS THE THIRD INDUSTRIAL REVOLUTION  THE FOLLOWING ARE THE TRENDS THAT HAVE INFLUENCED THE NATURE OF INDUSTRIAL WORK: o ELIMINATION OF PHYSICAL LABOUR: o MASS PRODUCTION AT LOW COST o EVOLUTION OF ENTREPRENEURIAL ELITE: o INCREASED MOBILITY IR: CONCEPT:  THE TERM INDUSTRIAL RELATIONS DENOTE EMPLOYER-EMPLOYEE RELATIONS IN BOTH ORGANIZED & UNORGANISED SECTORS OF THE ECONOMY. THE FOLLOWING ARE THE FEATURES OF IR: o IT IS BORN OUT OF EMPLOYMENT RELATIONSHIP. EXISTENCE OF TWO PARTIES IS ESSENTIAL. INDUSTRY PROVIDES THE ENVIRONMENT FOR IR
  • 5. o IT IS CHARACTERIZED BY BOTH CONFLICT & COOPERATION. IT IS A STUDY OF ATTITUDES, RELATIONSHIPS, PRACTICES & PROCEDURES DEVELOPED BY THE CONTENDING PARTIES TO RESOLVE OR AT LEAST MINIMIZE CONFLICTS o IT INVOLVES THE STUDY OF CONDITIONS CONDUCIVE TO THE LABOUR, MANAGEMENT COOPERATION AS WELL AS PRACTICES & PROCEDURES REQUIRED TO ELICIT THE DESIRED COOPERATION FROM BOTH PARTIES o IT IS THE STUDY OF LAW, RULES, REGULATIONS, AGREEMENTS AWARDS OF COURT, CUSTOMS & TRADITIONS AS WELL AS POLICY FRAMEWORK LAID DOWN BY THE GOVERNMENT FOR ELICITING COOPERATION BETWEEN LABOUR & MANAGEMENT  THE CONCEPT OF IR IS VERY BROAD –BASED DRAWING HEAVILY FROM A VARIETY OF DISCIPLINES LIKE SOCIAL SCIENCES, HUMANITIES, BEHAVIOURAL SCIENCES, LAWS ETC. SCOPE & ASPECTS OF IR:  DEVELOPMENT OF HEALTHY LABOUR MANAGEMENT RELATIONS o EXISTENCE OF STRONG, WELL ORGANIZED DEMOCRATIC & RESPONSIBLE TRADE UNIONS & ASSOCIATIONS OF EMPLOYERS o THESE O ENHANCE THE JOB SECURITY OF EMPLOYEES, HELP IN INCREASED WORKERS PARTICIPATION IN MANAGEMENT, & GIVE LABOUR A DIGNIFIED ROLE IN SOCIETY o IT IS THE SPIRIT OF COLLECTIVE BARGAINING, & WILLINGNESS TO TAKE RECOURSE TO VOLUNTARY ARBITRATION. FOR THIS AN ATMOSPHERE OF TRUST & GOODWILL SHOULD EXIST o WELFARE WORK MAINTAINS & IMPROVES LABOUR MANAGEMENT RELATIONS 7 THEREBY CONTRIBUTE TO INDUSTRIAL PEACE  MAINTENANCE OF INDUSTRIAL PEACE o INDUSTRIAL PEACE PRE-SUPPOSES THE ABSENCE OF INDUSTRIAL STRIFE WHICH IS ESSENTIAL FOR INCREASED PRODUCTIVITY & HARMONIOUS LABOUR MANAGEMENT RELATIONS o INDUSTRIAL PEACE CAN BE NURTURED THROUGH FOLLOWING MEANS:  MACHINERY SHOULD BE SET UP FOR THE PREVENTION & SETTLEMENT OF INDUSTRIAL PEACE  THE GOVERNMENT SHOULD HAVE THE POWER TO REFER DISPUTES TO ADJUDICATION
  • 6.  THE GOVERNMENT ENJOYS THE POWER TO MAINTAIN STATUS QUO  THE PROVISION OF THE BIPARTITE & TRIPARTITE FORUMS FOR THE SETTLEMENT OF DISPUTES  DEVELOPMENT OF INDUSTRIAL DEMOCRACY o ESTABLISHMENT OF THE SHOP COUNCILS, & JOINT MANAGEMENT COUNCILS AT THE FLOOR & PLANT LEVEL o RECOGNITION OF HUMAN RIGHTS IN INDUSTRY o INCREASE IN LABOUR PRODUCTIVITY o THE AVAILABILITY OF PROPER WORK ENVIRONMENT COMPONENTS OF IR SYSTEM  AN IR SYSTEM IS MADE UP OF THREE ACTORS o EMPLOYER o UNION o GOVERNMENT  THESE ACTORS JOINTLY DETERMINE THE OUTPUT OF THE SYSTEM, WHICH LARGELY CONSISTS OF RULES / REGULATIONS RELATING TO TERMS & CONDITIONS OF EMPLOYMENT ROLE OF THESE ACTORS:  WORKERS & THEIR ORGANIZATION: o THE RELATIONS BETWEEN THE WORKERS IS IMPERSONAL & DEHUMANISED o WORK IN ALIENATED MONOTONOUS UNHYGIENIC WORK ENVIRONMENT o THEIR ACTIVITIES ARE REGULATED & CONTROLLED o THE UNION MAIN ACTIVITY BECOMES SAFEGUARDING WORKERS INTEREST BOTH WITHIN & OUTSIDE THE ORGANIZATION o THE UNION REPRESENTS & PROTECT THE INTERESTS OF THEIR MEMBERS THROUGH COLLECTIVE BARGAINING, & OFTEN THEY USE PRESSURE TACTICS OR THREATS OF STRIKES & GHERAOS  THE MANAGEMENT: o THEY ARE THE KEY ACTOR IN THE SYSTEM
  • 7. o THE RELATIONSHIP BETWEEN THE PARTIES DEPENDS UPON THE LEADERSHIP STYLES EXHIBITED BY THE EMPLOYER WHICH COULD BE ANY ONE OF THE FOLLOWING:  EXPLOITATIVE AUTHORITATIVE  BENEVOLENT AUTHORITATIVE  CONSULTATIVE  PARTICIPATIVE  THE GOVERNMENT: o ACT AS JUDGE & REGULATOR o HAS VESTED INTEREST o MODEL EMPLOYER FACTORS AFFECTING IR:  INSTITUTIONAL o INCLUDES STATE POLICY, LABOUR LAWS, UNION, EMPLOYER’S ORGANIZATION  ECONOMIC o INCLUDES TYPE OF OWNERSHIP o NATURE & COMPOSITION OF WORKFORCE o SOURCE OF LABOUR SUPPLY o DISPARITY OF WAGES  SOCIAL o INCLUDES SOCIAL VALUES, CASTE, COMMUNITY  TECHNOLOGICAL o INCLUDES TYPES OF TECHNOLOGY o DEVELOPMENT OF NEW MACHINES  PSYCHOLOGICAL o INCLUDES OWNERS ATTITUDES, WORKERS ATTITUDES TOWARDS WORK, THEIR MOTIVATION, MORALE, INTEREST,  POLITICAL o INCLUDES SYSTEM OF GOVERNMENT, POLITICAL PHILOSOPHY, ATTITUDE OF GOVERNMENT, RULING ELITE & OPPOSITION TOWARDS LABOUR PROBLEMS  ENTERPRISE RELATED o INCLUDES STYLES OF MANAGEMENT, ITS PHILOSOPHY, VALUE SYSTEM, ORGANIZATIONAL CLIMATE, ORGANIZATIONAL HEALTH,
  • 8. EXTENT OF COMPETITION, ADAPTABILITY TO CHANGE, & VARIOUS HRM POLICIES  GLOBAL o INCLUDES INTERNATIONAL RELATIONS, GLOBAL CONFLICTS, GLOBAL CULTURAL ISSUES, ECONOMIC & TRADING POLICIES, INTERNATIONAL TRADE AGREEMENTS & RELATIONS, INTERNATIONAL LABOUR AGREEMENTS PERSPECTIVE / APPROACHES TO IR  PSYCHOLOGICAL  SOCIOLOGICAL  HUMAN RELATIONS  SOCIO-ETHICAL  GANDHIAN  SYSTEM PSYCHOLOGICAL APPROACH:  THE PSYCHOLOGISTS VIEW PROBLEM OF IR IN PERCEPTION & THE ATTITUDE OF FOCAL PARTICIPANTS  THE GENERAL IMPRESSION ABOUT A PERSON IS RADICALLY DIFFERENT WHEN HE IS SEEN AS A REPRESENTATIVE OF MANAGEMENT FROM THAT OF THE PERSON AS REPRESENTATIVE OF LABOUR  THE MANAGEMENT & LABOUR SEE EACH OTHER AS LESS APPRECIATELY OF OTHER’S POSITION THAN OF ONESELF  THE MANAGEMENT & LABOUR SEE EACH OTHER AS LESS DEPENDABLE  THE MANAGEMENT & LABOUR SEE EACH OTHER AS DEFICIENT IN THINKING REGARDING EMOTIONAL CHARACTERISTICS & INTERPERSONAL RELATIONS
  • 9.  IT IS FOR THIS REASON THAT ALMOST INVARIABLY SOME ASPECTS OF THE SITUATIONS ARE GLORIFIED, SOME SUPPRESSED OR TOTALLY DISTORTED BY THE INDIVIDUAL MAKING JUDGEMENTS IN THE ISSUE SOCIOLOGICAL APPROACH:  INDUSTRY IS A SOCIAL WORLD IN MINIATURE & THE WORKSHOP IS IN REALITY A COMMUNITY MADE UP OF VARIOUS INDIVIDUALS & GROUPS WITH DIFFERENCING PERSONALITIES, EDUCATIONAL BACKGROUND, FAMILY BREEDING, EMOTIONS LIKES & DISLIKES & A HOST OF OTHER PERSONAL FACTORS SUCH AS ATTITUDES & BEHAVIOURS  THESE DIFFERENCES IN INDIVIDUAL ATTITUDE & BEHAVIOURS CREATE PROBLEMS OF CONFLICT & COMPETITION AMONG THE MEMBERS OF AN INDUSTRIAL SOCIETY  IN ANALYSING IR THE ROLE OF SOCIAL CHANGE CANNOT BE OVERLOOKED. MANAGEMENT HAS BECOME PROFESSIONAL. DECISION-MAKING IS GETTING DECENTRALISED. THE PROFILE OF INDUSTRIAL WORKER HAS ALSO CHANGED. WORKERS ARE QUALIFIED. THERE IS SHIFT FROM MANUAL WORKING TO KNOWLEDGE BASED WORKING. THE ROLE OF STATE & POLITICAL PARTIES IS BEING REDEFINED. THE CHANGES IN SOCIAL ORDER, THE CONCEPT OF HAVES & HAVE NOTS ARE FAST CHANGING & IR IS PRIMARILY DETERMINED BY POWER HUMAN RELATIONS APPROACH  THIS IS ONE OF THE MOST DELICATE & TRICKY AREAS OF MANAGEMENT. IT DEALS WITH LIVE HUMAN BEINGS WHO HAVE EMOTIONS, PERCEPTION, AND ATTITUDE PERSONALITY. THESE CHARACTERISTICS MAKE THEM COMPLEX INDIVIDUALS & WHEN THEY INTERACT WITH OTHERS THEIR COMPLEXITY FURTHER MULTIPLIES. HENCE MANAGING THE DYNAMICS OF HUMAN BEHAVIOUR BOTH AT INDIVIDUAL & GROUP LEVEL POSE A BIGGEST CHALLENGE TO MANAGEMENT  THE VARIOUS HRM POLICIES INCLUDING THOSE RELATING TO LEADERSHIP & MOTIVATION HAS PROFOUND INFLUENCE ON PEOPLE’S WORK BEHAVIOUR SOCIO-ETHICAL APPROACH TO IR  THIS APPROACH HOLDS THAT IR BESIDES HAVING SOCIOLOGICAL BASE DOES HAVE SOME ETHICAL RAMIFICATIONS  IR CAN ONLY BE MAINTAINED WHEN BOTH THE LABOUR & MANAGEMENT REALIZE THEIR MORAL RESPONSIBILITY IN CONTRIBUTING TO THE SAID TASK
  • 10. THROUGH MUTUAL COOPERATION & GREATEST UNDERSTANDING OF EACH OTHER’S PROBLEMS GANDHIAN APPROACH TO IR  IT IS BASED ON FUNDAMENTAL PRINCIPLES OF TRUTH, NON-VIOLENCE &NON- POSSESSION  FROM THESE PRINCIPLES EVOLVED THE CONCEPTS OF NON-COOPERATION & TRUSTEESHIP  THIS PHILOSOPHY PRESUMES THE PEACEFUL CO-EXISTENCE OF CAPITAL & LABOUR, WHICH CALLS FOR RESOLUTION OF CONFLICT BY NON-VIOLENCE & NON-COOPERATION THAT ACTUALLY AMOUNTS TO PEACEFUL STRIKES.  GANDHIJI ACCEPTED THE WORKER’S RIGHT TO STRIKE BUT FOR JUST CAUSE & IN PEACEFUL & NON-VIOLENT MANNER, & SHOULD BE RESORTED TO ONLY AFTER EMPLOYERS FAIL TO RESPOND TO THEIR MORAL APPEALS  THE PRINCIPLE OF TRUSTEESHIP HELD THE PRESENT CAPITALIST ORDER CAN BE TRANSFORMED INTO AN EGALITARIAN ONE. IT DOES NOT RECOGNIZE THE RIGHT TO PROPERTY EXCEPT TO THE EXTENT PERMITTED BY SOCIETY FOR ITS OWN WELFARE, THE INDIVIDUAL DOES NOT HAVE ANY RIGHT TO HOLD OR USE WEALTH IN DISREGARD OF THE INTEREST OF SOCIETY; & THE CHARACTER OF PRODUCTION IS TO BE DETERMINED BY SOCIAL NECESSITY RATHER THAN BY PERSONAL WHIMS OR GREED. THE CAPITALIST IS EXPECTED TO HOLD INDUSTRY IN TRUST FOR THE COMMUNITY, & WORKERS ARE EXPECTED TO BE CO-TRUSTEE ALONG WITH THE EMPLOYER SYSTEM APPROACH TO IR  THIS APPROACH FOCUSES ON ENVIRONMENTAL FORCE, PARTICIPANTS & OUTPUT ENVIRONMENTAL FORCES PARTICIPANTS IN THE OUTPUTS SYSTEM 1. MARKET OR 1. UNION – 1. RULES OF THE BUDGETARY MANAGEMENT WORKPLACE CONSTRAINTS 2. GOVERNMENT 2. TECHNOLOGY 3. DISTRIBUTION OF POWER IN SOCIETY
  • 11. PREREQUISITES FOR SUCCESSFUL IR PROGRAMMES  TOP MANAGEMENT SUPPORT o SINCE IR IS A STAFF FUNCTION; IT WILL REQUIRE THE SUPPORT OF CEO; THEN ONLY IR CAN BE EFFECTIVE  DEVELOPING SOUND HRM & IR POLICIES o HRM & IR POLICIES SHOULD BE SO DESIGNED SO AS TO MAINTAIN GOOD IR IN AN O  DEVELOPING OF EFFECTIVE HRM & IR PRACTICES o PRACTICE SHOULD SUCH SO AS TO TRANSLATE VARIOUS POLICIES INTO ACTION  PROVISION OF ADEQUATE SUPERVISORY TRAINING o IN ORDER TO PUT PRACTICE THE POLICIES & PRACTICES INTO ACTION, THE LINE EMPLOYEES NEED TO TRAINED IN UNDERSTANDING THE VARIOUS HR & IR POLICIES & PRACTICES  FOLLOW UP OF RESULTS o NEVER TAKE ANY HR & IR POLICIES & PRACTICES FOR GRANTED. KEEP ON REVIEWING THE SAME; FOR EMPLOYEES HAVE UNIQUE METHODS OF EXPRESSING THEIR DISSATISFACTION WITH HR & IR POLICIES. EVOLUTION OF IR: INTRODUCTION:  LABOUR MANAGEMENT BECAME AN IMPORTANT SUBJECT OF STUDY ONLY WHEN LARGE AGGREGATIONS OF PEOPLE CAME TO WORK TOGETHER UNDER ONE ROOF IN AN ORGANIZATION.  THE VARIOUS STAGES THROUGH WHICH THE SYSTEM PROGRESSED WERE AS FOLLOWS:
  • 12. o THE AGRARIAN ECONOMY STAGE o HANDICRAFT STAGE o COTTAGE OR PUTTING-OUT STAGE o FACTORY OR THE INDUSTRIAL CAPITAL STAGE THE AGRARIAN STAGE:  IN TRIBAL SOCIETY, PROPERTY WAS COMMON & COLLECTIVE ASSET OF THE GROUP.  IN MIDDLE AGES PROPERTY WAS VIEWED AS PERSONAL PROPERTY OF THE LANDLORD.  THIS GAVE RISE TO PROPERTIED INDIVIDUALS & PROPERTYLESS WORKERS.  THE EMPLOYEES WERE TREATED AS SLAVES.  THE EMPLOYER-EMPLOYEE RELATIONSHIP WAS THAT OF MASTER-SERVANT TYPE.  THE SLAVES WERE REQUIRED TO DO ALL TYPES OF WORK. AND IN TURN THE MASTER PAID THEM IN KIND [BASICS LIKES: FOOD / CLOTH / SHELTER] & NOT IN CASH.  THE GOVERNMENT DID NOT YIELD ANY POWER OVER THE EMPLOYMENT RELATIONSHIP THE HANDICRAFT STAGE:  HANDICRAFT SYSTEM GREW BECAUSE OF THE GROWTH OF TOWNS & CITIES, INCREASE IN TRADE & COMMERCE & A DECLINE IN THE POWER OF FEUDAL LORDS.  THIS SYSTEM INTRODUCED AN IMPORTANT INNOVATION IN THE CAREERS OF WORKERS, VIZ. MOVEMENT FROM EMPLOYEES TO EMPLOYERS.  THE WORKERS / CRAFTSMEN OWNED FACTORS OF PRODUCTION, WORKED WITH THEIR OWN TOOLS & WITHIN THE HELP OF THE MEMBERS OF THEIR FAMILY & OFTEN WORKED IN THEIR OWN HOMES / WORKSHOPS & PERFORMED THE HAND TASKS.  THEY SOLD THEIR PRODUCTS DIRECTLY TO THE CUSTOMERS.  SEPARATE CRAFTSMEN EXISTED FOR SEPARATE WORKS, LIKE: COBBLER, BLACKSMITH, CARPENTRY, POTTERY, CLOTH WEAVING ETC.  SOMETIMES THE MASTER CRAFTSMAN ALSO UNDERTOOK TO TEACH HIS CRAFT TO SOME YOUNG MEN. THESE ARTISANS BEGAN THEIR CAREERS AS APPRENTICES & WERE BOUND TO WORK FOR THE MASTER CRAFTSMAN FOR SPECIFIED PERIOD DURING WHICH THEY COULD LEARN THE CRAFT. THEY GOT NO WAGES. LODGING, BOARDING WERE PROVIDED.
  • 13.  THESE ARTISANS AFTER THEIR TRAINING SETTLED AS INDEPENDENT JOURNEYMEN.  THE MASTER-CRAFTSMAN HELD THE HIGHEST STATUS IN THE SOCIETY FOR HE HAD THE SKILL & THE OWNERSHIP. THE JOURNEYMAN HELD THE SECOND POSITION IN THE SOCIETY ON ACCOUNT OF THEIR MOBILITY. THE APPRENTICE HELD THE LOW STATUS COTTAGE OR PUTTING-OUT STAGE:  HANDICRAFT SYSTEM CATERED ONLY TO THE LOCAL MARKET. THE JOURNEYMAN REALISED THE POTENTIAL OF MARKET. THEY UNDERTOOK TO BUY RAW MATERIALS & SUPPLY THESE AS WELL AS FINANCES TO THE CRAFTSMAN. THE CRAFTSMAN WORKED AT HIS HOME ALONG WITH THE MEMBERS OF HIS FAMILY. THEY WERE PAID ON A PIECE RATE BASIS FOR THE WORK  THE JOURNEYMAN KNEW THE DEMAND OF THE VARIOUS MARKETS. HE ALSO KNEW THE SUPPLIERS WELL. HE PROVIDED THE RAW MATERIALS & THE FINANCES & COLLECTED HIS COMMISSION IN THE PROCESS. FACTORY OR THE INDUSTRIAL CAPITALISM STAGE:  WITH THE PASSAGE OF TIME & GAINING EXPERIENCE, THE TRADER CAPITALIST REALISED THAT ECONOMIES IN PRODUCTION, MAINTAINING QUALITY, & DELIVERY TO THE CUSTOMER COULD BE ACHIEVED BY CENTRALIZATION.  HE INSTALLED MACHINERY, PROVIDED TOOLS, RAW MATERIAL & OFFERED EMPLOYMENT IN NEWLY BUILT WORKSHOPS OR FACTORIES.  THIS MADE IT EASY FOR HIM TO SUPERVISE.  WITH THE INVENTION & MANUFACTURING OF POWER DRIVEN MACHINERY THE PROCESS DEVELOPED FURTHER. IN COURSE OF TIME FACTORY SYSTEM CAME TO STAND ON SOUND FOOTING & MACHINES REPLACED HUMAN LABOUR.  IT GAVE RISE TO EMPLOYMENT OPPORTUNITIES FOR WOMEN & CHILDREN  WORK WAS SIMPLIFIED BY MACHINERY. SLOWLY THE WORKERS WERE REDUCED FROM SKILL TO MANUAL OPERATORS.  BY MEANS OF FACTORY SYSTEM, WORKERS WERE BROUGHT TOGETHER UNDER ONE ROOF, & STRICT DISCIPLINE WAS MAINTAINED. THE QUALITY & QUANTITY OF THE PRODUCT WAS GUARANTEED.
  • 14.  THE EMPLOYER OWNED THE FACTORS OF PRODUCTION. THE DEMAND- SUPPLY OF PEOPLE DETERMINED THE WAGES. ONCE THE WAGES WERE PAID, THE EMPLOYER HAD NO OBLIGATION TOWARDS THE EMPLOYEES.  THE EMPLOYER PRODUCED GOODS WITH THE SOLE AIM OF SELLING THEM AT PROFITS, WHILE WORKERS WORKED TO SATISFY THEIR ECONOMICS NEEDS. PASSING OF FACTORIES ACT:  THE WORKERS WERE CONTINUED T BE EXPLOITED BY THE EMPLOYERS. THE GOVERNMENT WERE A SILENT SPECTATOR BECAUSE OF THEIR LAISSEZ- FRIAR POLICY.  WITH THE PASSING OF THE FACTORIES ACT IN 1881, THINGS STARTED IMPROVING. RESTRICTIONS WERE BROUGHT ON THE WORKING HOURS, EMPLOYMENT OF CHILDREN, WORKING CONDITIONS, ETC.  THE WORLD WAR I CREATED A BOOM FOR EMPLOYERS. WITH THE RISING PRICES, THEIR PROFITS WENT UP ENORMOUSLY. THE WAGES OF THE WORKERS DID NOT KEEP IN PACE WITH THE RISE IN COST OF LIVING. THE WORKERS RESORTED TO STRIKES.  DURING THE WORLD WAR II, THE EMPLOYERS AGAIN MADE ENORMOUS PROFITS. THE WORKERS DEMANDED A SHARE IN IT. BONUS & DEARNESS ALLOWANCE WAS GRANTED TO THEM. THE MONEY WAGES DID NOT KEEP IN PACE WITH RISE IN C
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