INTRODUCTION_TO_THE_SUBJECT
The subject which is selected for the Dissertation in partial fulfilment of the requirements for the degree of Master of Philosophy in Social Work is entitled as M A
Comparative Study of Personnel Practices in Co-operative and Private Sugar Industries in Maharashtra." The study
aims to,compare the personnel practices prevailing in
selected Sugar Industries at State Level i.e. Co-operative Sugar Industries and Private Sugar Industries. But the Researcher cann*t get any Private Sugar Industry for his
research work though he.had tried his level best. It is known that the private sugar industries are either wound up or converted into co-operative sugar factory. Therefore,
the study is limited, i.e. • A COMPARATIVE STUDY OP PERSONNEL PRACTICES IN CO-OPERATIVE SUGAR INDUSTRIES.' The selection of the co-operative sugar factories is done by keeping the regional area i.e. • Western Maharashtra and South Maharashtra • • For Western Maharashtra the
represented sugar factory is “ The Rahuri Sahakari Sakhar Karkhana Limited, Rahuri, Dist. Ahmednagar"and for South Maharashtra the represented sugar factory is " The Shetkari Sahakari Sakhar Karkhana Limited, Sangli. Besides, the
study of Personnel Practices, the study of the Welfare facilities made by these factories for their members,
?
2 -
emplsjyee and society is also made. The main purpose of the research is to study the awareness, attitudes, knowledge of the supervisory and managerial staff towards personnel
T
practices to get to close to the field of Personnel
Management and line, and executive staff who are responsible for executing personnel practices.
THE SIGNIFICANCE AND PROPRITY OF SOCIAL WORK RESEARCH *
The significance of selecting the topic confined to Personnel Practices in co-operative industrial organisation could be explained. However, before doing that we need to have a prospective about socio economic changes taking
shape and direction, at an Indian Society in an era of organised, planned development. One of the objective of Social Work is to relate Social Policy and Social Action to social need, as advocated by eminent Researchers and Social Scientist. Similarly, according to Dr.A.B.Bose,
• the proprity of social work research confines to obtain insight into the cosative factors of personnel and social disorganisation and suggest appropriate solution.' In the light of above observation the researcher was trying to
finalise the topic of the research for M.Phil. dissertation.
INDUSTRIAL REVOLUTION AND THE EFFECTS ON INDIAN INDUSTRY t
In the second half of 18th century the first half of the 19th century spectacular and rapid changes took in
England and other Europian countries. While the French Revolution was pursuing its course and while Napoleon was disturbing the peace of Europe, another revolution, vhich was destined to affect still more profoundly the history of mankind, was taking place in England. This was the
Industrial Revolution, a term which is used to express the change which was responsible for the adoption of the system of making things on a large scale in large factories with the aid of steam power, as opposed to the old system,
which was generally followed up to the middle of the 18th century, of making goods in the cottages or shops of the workers.1
Due to the revolution, the methods and technicyies of production which led to the establishment of large and mechanised units in industry, agriculture, mining and
transport. These changes enabled England to occupy top position in tihe World in the fields of manufacturers, trade and commerce and transport. As a result of these achievements immense wealth poured into England and made her richest country. But the vast fortunes were
accumulated in a few hands and the people as a whole were not able to enjoy the advantages of the great proprity of the country.
1. *An out line History of the World*. XXVII Chapter- Page No.469- HA.Davies.
The paradoxial situation has been summed up by Meredith1 in the following words, " If one thing is certain about the first half of the 19th century, besides on enormous increase in the productive power it is the misery and want of the mass of Englishmen,"
The most important reason responsible for the
9
development of the type of situation described above, was perhaps the absense’of an equitable and broad basis of distribution or sharing the fruits of the newly developed techniques of production among the different classes of people, The situation was not proper to the working class.
The factories were owned by a small class of capitalists, whose main object appeared td be to a mass great fortunes
for themselves, with little or no regard for the well
being of those *£io worked for them. Women and children of tender years were employed in large numbers, wages were scandalously low, hours of labour were frequently as high as fifteen to eighteen in the day. The working classes were at the time unorganised and somewhat in coherent, and
therefore almost wholly at the mercy of their masters. Some of them, like the English Chartists, thought that if the
franchise were extended, their lot would be improved,
others grasped the idea that without organisation and unity, no permanent improvement was possible, and so, they strove
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1, India Planning for Industrialisation- -Bhagwati and Desai-IInd Chapter,
to establish trade unions. In England, these unions were declared to be illegal but in 1824, however, the government legalised them.1 This situation gave birth to the working class movement. Since that time i.e. 1824, they have
increased greatly in power and influence not only in
England, but in all the important industrial countries of the world and they have undoubtedly, been the means of
t
securing higher wages, fewer hours of labour and better conditions for their members.
the 18th century, the term 'Industry' in India was not known. No doubt India had a historic origin,
predating the British period. The people engaged in trades like lending activities and agriculture. Different
business communities like Multanies, Pathans, Dutch etc.
flourished at the time of the spread of British power in the 18th century. A variety of merchants of different 2 nations and religions such as Arab, Moghal, Parsi, Bohari, Pathan,(Baluchi, etc. and many others used to resort to
Bengal, Gujrath, Bombay in groups together with troops of oxen for the transport of goods from different parts of
3
India. The raw silk trade was conducted by several
*1. An out-line history of vforld-'The Industrial Revolution Page No.476, By- H.A.Davies.
2. India Planning for Industrialisation-By-Bhagwati.
3. Historical Geniologis-By- G.S.Sardesai.
Gujarathi merchants who traded extensively with vastly
distant places such as Surat, Bombay, Delhi, Multan, Lahore, Armanian merchants settled in Bengal and handled trade in raw silk, cotton piece, rose water, scents, emerdlds, dry fruits, salt, ginger and spices to Surat, Cochin, Bussorah and other places both in land and abroad,1
The growth of British political power concurrent with the rapid disintegration of the Mughal Empire i.e. year 1757 introduced a new epoch. The interplay between British and Indigeneous entrepreneurship, often corapetative and at times complimentary, was to dominate the scene. Thereafter British entrepreneuship initially that of East India Company and
its servants penetrated the inland and foreign trade of the Bengal Presidency under the aegis of the company's political power supplanting many native houses and reducing the
indeginous entrepreneurs to essentially an intermediatory role. The East India Company itself engaged initially purchases mainly through the so called Dadni System under which advances were paid to merchants to enable them to re-lend to the weavers. The merchants were contractors with
their contacts in different manufacturing and supplying centres. This policy was replaced by the agency system under which paid Indian agents of the company made their purchases under the supervision of the European servants of the company. The agency system turned out to be extremely
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1, India Planning for Industriaiisation-Bhagwati, Desai.
lucrative for the company's servants vtfio became agents or contractors under the new arrangements. All the silk
factories and several of the chief cloth centres had
V 1
moreover been replaced under the agency system.
The British Empires in India made the changes in Indian Industry i.e. in textiles,(Hand-looms), Jute
Industry etc. More production is required, the production cost less and the atmosphere was good so that the British emperiors brought the modern techniques in Indian Industry.
Railways, telephone etc. facilities were useful to develop the business of the industry in India.
It is in this context of the general organisation of the Industrial economy of the world, that have to
build up own industry. Although the modern industrial
structure of India is more than a century old. the process of rapid industrialisation on sound scientific lines began seriously at ‘the national level, only after the attainment of independence in 1947.
The process of industrialisation is so rapid that it may be called the period of Indian Industrial Revolution Therefore, the Government made applicable an act known as the industries (Development and Regulation) Act, 1951. It is of atmost importance that the results ,of industry should
1. India Planning for Industrialisation- -Bhagwati, Desai.
i
be shared widely and equitably. This can only be possible when the ownership of the industry is commerce oriented.
The task of management is entrusted to the talented persons on the basis of merits and not on the basis of family.
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The chiefs of Indian Industry are fully conscious of the onerous task which they are called upon to shoulder.
Late Shri N.Dandekar,1 a leading business executive of Bombay observed, M The revolutionary changes brought about in last two decades by technological developments in the world especially in India have made it imperative for business management to accept a code of ethics. In every society one mus^ make allowance for a few incorrigible, unscrupulous persons, but businessmen and industrialists, should take note of the vast transformation in human
thinking in recant years.,, v
The major organised industries of India are working within a well defined and regulated framework created by law. The prices of manufactured goods are either controlled voluntarily as in the case of cotton, or statutorily as in
the case of iron and steel, cement, paper, sugar etc.
The statutory price control is exercised with the help of the Tariff commission. In recommending the selling prices 1. Indian Economics - Saxena R.L
the commission takes into consideration the manufacturing expenses and a fair return on investment. In this process the interests of investors and consumers both are taken into consideration. It can be said that the fruits of
organised industry are being shared by the different of the society fairly, equitably and widely and there seems to be little room for such suspicious as were expressed by some members in Parliament that the fruits of economic development
were getting concentrated in the hands of few people and were not reaching masses. If, on the other hand, the view point of industrialist is taken into consideration it
seems as if the hen which lays the golden eggs is being squiezed beyond the safety point.
The problem of raw material supplies is becoming
more difficult both quantitatively and qualitatively, as the tempo of industrialisation increases. In the case of raw materials provided by agriculture and forest for industries
»
like cotton, jute, sugar and paper the industries themselves can do a good deal to improve the supplies if they emulate the example of jute industry in joining hands with the Government and the growers in research and development
projects.
Industries like cotton and sugar are concentrated in certain region to be of help collectively in research and development work. The regional concentrations of cotton
industry are found in Maharashtra and Gujarath and similar
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concentrations of sugar industry are found in North
Bihar, Eastern and Western U.P., Maharashtra and Andhra- Pradesh.
Industrialisation has many consequences on
different sectors in society e.g. Industries employ more persons than agriculture and the complex problem of
un-employment can be eliminated by development of industries large and small* Industries give more per capita income
and production as compared to agriculture* They also provide more internal and external economies and establish quickly
a self generated economy. Industries raise the standard of living of the people by increasing per capita net
national income and often improve balance of payment situation.
A BRIEF REVIEW OF INDUSTRIALISATION IN INDIA WITH SPECIAL REFERENCE TO PUBLIC AND PRIVATE SECTOR *
*
It is necessary first of all to be clear *Aiat constitutes the above two sectors. The Private Sector is
all too often identified with only large units in industry and trade. While such units have considerable significance In the development of economy, for technological and
other reason, we must in any objective assessment of the private sector take into consideration the millions of farmers artisans traders and snail industrialists vho constitute the bulk of this sector.
In regard to the public sector while it has existed for long in India as well as in other countries including capitalist countries, its new importance in our country has
arisan as a result of planning and our objective of
building a socialist pattern of society. Such a society as visualised in India's plans does not imply that all
economic initiative or activity must be in the hands of State, Actually, our plans assign an important role to the private sector in national development, of course assuming
that private enterprise accepts the broad discipline and
i
values implied in the national plans and functions in union with the public sector.
The plans also envisage a third and equally important and growing sector that is the co-operative sector-
particularly in respect of agriculture, medium and small scale industry, trade and distribution and many fields of social services this 3rd sector will be made up of private individuals, with the state only helping and guiding their
activities, generally, for the social good, CO-OPERATION AND ITS IMPORTANCE i
Efoilosophy of co-operation lt The word co-operation is used in different ways.
The arrangement prevalent in most free countries
1, Co-operation in India-Dr.C. B.flaraoria-Chapter-4, P.N.83.
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under which labour and capital function jointly in production is some times called co-operation*
The more or less automatic system by which different people in every free economy produce for each other and exchange goods ctnd services with each other through the mechanism of the market is some times called co-operation*
In a similar sense# nations are said to co-operate when they trade with each other# negotiate treaties# or
for alliances. In general# any working together joint action or concurrence in action needs the dictionary definition of co-operation.
Sociological Ideas of Co-operation :
* <?
Some people view co-operation as primarily a Sociological concept. Dr.C.C.Taylor said that two basic sociological ideas were involved in co-operation.*
a) That people crave personal relationships rather than in personal relationships involved in modern business dealings.
b) The other basic idea seems to be that people are
motivated by a device to join with others in a mutual efforts and to live in peace rather than to complete against each other.
Other# however# hold that people are stimulated to
1 .Objectives of *farmer co-op. by a sociologist. American co-op.1949# By-C.C.Taylor- Page No. 63 to 73.
action only by stress and conflict, that competition is the dominant type of human motivation and hence not only of trade but of human survival,,
3efore discussing the importance of co-operation we intend to discuss what is meant by co-operation. Co-operation
is a form of organisation where in persons voluntarily
associate together as human being on a basis of equality for the promotion of economic interest of themselves. According to Mr.James W.^ "Co-operation is the way of life vhereby people unite democratically in the spirit of mutual aid to get largest possible access to the things and services they need."
Mr.V.L.Mehta, 2 a veteran co-operator of India, describes co-operation as follows, " Co-operation is only one aspect of a vast movement which promotes voluntary associations having common needs who combine together for the achievement of common economic ends," According to Dr.Katju, "Co-operation is self help as well as mutual help. It is a joint association or enterprise of those who
are not financially strong and are unable to stand on their own legs and therefore come together not with a view to gee
1. The Co-operative, May,1946- James P. Warbasse.
2. National Institute of Co-op.Management,' P,No.88,
Co-op. An Interdisciplinary Approach,1969- V.L.Mehta.
s 14 : profits but to overcome diability arising out of want of adequate financial resources and thus better their
economic conditions."
Co-operation has a particular approach to the
economic life with two germinal ideas, association and use.
The significance of co-operative approach to economic life consists in its emphasis on social welfare. Co-operative
approaches man-as a whole never dis-associated from the social and moral aspects. Thus, co-operative thought has broken new ground in the traditional social thought in which as Prof.M.T.Herrick* has observed, " Individualism has been seriously overstressed to the neglect of the social side of mind, of thinking and the, appretiative moral life.1' .Co-operation does not look upon man as an economic man of
the classical school of economics. The emphasis is laid always on human values. Co-operation puts the so called market value in a wider and more human setting. Thus the co-operative thought conforms to the latest trends in economic thought especially the school of welfare
economics. The problem of economics progress infact, in the development of human character. Prof.Alfred Marshell emphasised this aspect long ago, when he defined economics as, " Thus it is on the one side a study of wealth and on the other a more important side, a part of the study of man." Prom this point of view co-operative ideology has a
great significance.
— r*— — — “ “ — — — — ■»• *---— — — — — — — — — — - — — —mm^mm mm —mm **,-** —
1. Rural Credit - Prof.M.T,Herrick.
In fact, co-operation is a practical economic
system of transacting business based on all that is best in human nature. It is a happy golden mean between capitalism and socialism.
While preserving the instinct of self interest it organises on higher plan the basis of collective effort.
On the one hand, it applies a great break on anti social ills such as greed, selfishness, and, on the other it avoids
/
the tendency to drab uniformity, regimentation and bureau- \ cratization. The fundamental concepts has always been union-
union of poor common men and pulling of their poor
resources. As J.J.Woreley said, " A Co-operative Philosophy 1 of society must rest on free’universal association,
democratically governed, conditioned by equity and personal liberty."
Co-operation properly understood means working
together towards a common end. This working together must be for the mutual benefit and not to satisfy any sense of
patronage. In the words of Dr.G. Fauquet,1 2 "The primary aim of the co-operative society or institution is to improve the economic situation of its members, but by virtue of its methods of the qualities which it demands of and develops 1. A Social Philosophy of co-operation- ' J.J.Woreley.
2. The co-operative sector, Co-op.Union Ltd., ' -Dr.G.Fauquet, Holyoke HouseManchester 4, 1951, Page N0.123.
- 16 in the members, it achieves a higher aiml* The goal, then, of co-operation is to develop men- men imbued with the spirit of self help and mutual aid, in order that individually
they may rise to a full personal life and collectively a full social life.'* This approach is wanting in the present organisation of society. To take an illustration from
weaving th'e warp and the wool have to co-operate together to make ^arn into cloth. Similarly in the economic life the producer and the consumer have to co-operate together to achieve any thing. Unless we find this co-operation it is futile to expect any work of reconstruction to succeed.
CO-OPERATION IN INDIA *
The principles of co-operations are not in any way new to India. Co-operation has been known and practised in this country in various form?since ancient times. The Joint family system which is very old and exists till today is one instance df indeginous co-operation. Another form of co-operation is the 'Panchayat' which is based on the principle of community self help. Although the system has
fallen some ^iat into decay panchayats are still common in all states they have bean revived. The main functions of the organisations are to deal with the questions relating to the economic and social welfare of the community. Disputes among
t
the members are also refered- to them for decision. The decisions of the Panchayats are enforced under the penalty
of social boycott. Then there are ‘chitfunds' commonly found in South India# which are based on the principles of mutual association. The 'Nidhis' prevalent in South India provide a further instance of mutual credit association.
It is thus clear that India provides a natural soil for the development of co-operative institutions. Although co-operative movement was officially set up in 1904# yet it has not made such head way uptill now. All these 80 years have been spent by the Departments of co-operation# helped vigourously by large army of honourary workers in raising
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the co-operative credit structure from the primaries to the central financing agencies and to State Apex Banks, Co-operation has been a subsidiary means of second rate importance, a side game looked in favourably upon by
Government but distrusted by the urban intelligentsia who saw nothing good in Governments partiality for the
movement,’ Wedded to capitalism, they have not understood and even yet they do not understand what great ideas are
at the back of the co-operative movement and how startling as an instrument for the improvement of economic condition of a certain set of people, the co-operative principle is capable of being raised to the degnity of an “ism", forming the basis of the whole economic structure of the society of the country.
It is time that the co-operative principle is
recognised in India, not merely for the societies registered under the co-operative societies Act, but under the Companies Act, too, so that in no industry large or small, shall
profits be appropriated by any one section of the people or even by the state but shall be distributed equitably amongst
all, concerned. It is only when co-operation ceases to be a side and a sectional movement and is raised to the dignity of great national principle, it is only when a country adopts that just and equitable manner of production and distribution that an new era of peace will dawn, where no classicism or regimentation shall offend against the great
principle of universal brotherhood.
A unilineal march in a single continuous sequence from one end of economic activity to another directly leading to the ideal co-operative common wealth does not seen to have been materialised in co-operative movement
9
any where in the world. History knows no such example, though the philosopher might have dreamt of a direct path to the co-operative common wealth.
Dr.M.N.Shrinivas, ^he eminent social anthropologist was able ^to ascertain social change in modern India, has advocated westernisation, ^anskritilisation as social processes through which social change in India could be understood. One of the pioneer in the co-operative movement
and eminent economist Mr.b.R.Gadgil and number of his associates both in academic and social life, D.G. Karve, T.M.Joshi and VjLkhe-Patil, V.L.Mehta individually and
together were able to design and implement the co-operative movement at National Level and State Level, The details of the developments in earst while Bombay Presidency, and later on the formation of Greater bi lingual Bombay State comprised of a very vast Geographical area containing rich
soil, isolated forest belts and very scanty supply of water to agriculture. It is on this background the spirit of co-operative movement was infused in the medieval decean.
20 SUGAR INDUSTRY
Production and consumption of_Sugar_in_India :
Production of white sugar from sugarcane has been a very old industry of India. Sugarcane was cultivated in
almost all parts of the country and was turned into gur, guli sakhar etc. for consumption. Certain quantity of
sugar cane was also used for making 'Khandsari' for
confectionery and other similar purposes. Khandsari process was an open pan system organised on small scale basis.
The modern factory system for making white sugar from sugarcane was perhaps introduced for the first time in India by the Dutch in North Bihar in or about 1840. It
9
remained in an experimental stage upto the end of the century 'and the first successful factories were established by the
British entrepreneurs probably in 1903.1 While these efforts to start modern factories were being made the old Khandsari industry was fast declining on account of the competition of the factory made white sugar from Java. At that time the use of sugar was made in Parsi Restaurants for tea and cakes, in Military etc. At that time use of sugar was supposed
luxurious. Sugar, a must, for morning and evening stimulting drinks was not in practice. As British Smperor introduced
stimulating like tea, coffee etc. the people attracted towards ir. So the demand for sugar was increased. On the other hand
1. Indian Industries- Sugar Industry- Dr.Tulshiram Sharma.
people in rural areas were quite away from white sugar.
In the daily use, gur, guli-sa)char was used in their food.
For the preparation of food- sweet or for any purpose or functions the use of gur was made. Slowly the people were
v
attracted toward sugar because df its properties viz. White and crystalised, sweetness is more than gur, or other
substitutes, the quantity required is less than gur, easy for storage than other substitutes. By these values sugar becomes popular and so the demand for it was increased.
As the demand was increased and production was less, the ruling Government attracted to manufacture sugar in bulk under industrial basis. Therefore, the bulk sugar industry was established between 193!? to 1939.
The farmers attracted to cultivate sugar to cultivate sugarcane from 1950 onwards.
Sugar industry like cotton textiles depends upon agriculture for its raw material. But unlike cotton fibre the sugarcane is a weight loosing material as the sugar
produced from it ranges between 9 to 12 percent of the total weight of the cane used. The cane is more difficult to
transport than sugar and its sucrose content begins to
deteriorates after it has been cut from he fields. 24 hours after cutting the cane from the fields the sucrose begins to get inverted, it does not form crystals of sugar and passes into molasses. The better recovery is depend upon the cane
22
being crushed within 24 hours of its separation from the roots. In this respect sugarcane is comparable to milk#
vegetables and fresh fruits. Just as butter is prepared near the sources of milk supply# and as canning industries
i
grow up in the districts with a surplus production of vegetables and fruits# so sugar factories have to be
installed in the areas where sugarcane is grown in sufficient
«
quantities to feed the modern large scale factories# enough supplies of fresh cane for crushing mostly available in the immediate neighbourhood of the factories or within
reasonable limits for being transported to factories with the possibilities of minimum inversion or dryage.
In the case of most of the factories the source of power is an important factor and therefore is establishing
such factories# the question of the supply of fuel or
electricity always plays an important role in tfiie choice of their location. But the sugar industry tq very great extent is independent of the supplies of coal or electricity for running the machinery because the bagasse obtained as a
bye product is generally sufficient to meet the requirements of the factories for raising the steam and for heating the juice. Besides these consideration the price of sugarcane constitutes more than half of the total cost of the white sugar produced by the factories. r£hese factors make the manufacture of white sugar# a raw material localised industry and as the local distribution of sugar cane is
more or less entirely depend on climate and rainfall,
nature, plays a decision role in the location of the sugar industry.
CO-OPERATIVE SUGAR INDUSTRIES
One of the principles of co-operation, that to sell the agricultural crop from agriculturist to maximum price, is not limited, but the agricultural crop processed in
co«*operative factory and after sale the processed good whatever profit obtained that also distributed amongst the agriculturist, by keeping this intension sugar manufacturing is attempted on co-operative basis.
The expenses for manufacturing of 'gur' from sugarcane is more and profit is very less. Therefore, sugar factories became popular than gur manufacturing, Maharashtra is
aggressive in sugar factories. Now in Maharashtra the average production of sugar cane is 80 tonnes/ hectre and
approximately 5 lakh hectre land is under cultivation for 1
sugar cane. At present 101 sugar industries have started their crushing season and 26 sugar lactories are likely to be started. At present, co-operative sugaf industries works
120% of their capacity. 2
1. State level sugar conference at Datta Shiral, Kolhapur Dist. dated 24-9-1990(Daily Sakai),
2. Chief Minister's statement dt.27-2-1991.
- 24 - The percentage of sugar is 10-12% in sugar cane in
Maharashtra. Maharashtra taken lions share in sugar export.
The Government of Maharashtra is having an independent Directorate of sugar for regulating the affairs of sugar
industry in the state in olden days i.e. prior to independence.
The extent and spread of sugar industry was very much limited and as such the private sectors was operating the sugar
industry. The efforts on the part of economists and political leaders motivated the process of initiating the spirit of co-operation £n the sphere of co-operative movement and as such the late Vithalrao Vfkhe Patil spent his life time for promoting sugar industry with the help of farmers, 90% of
whom were practically illiterate and ignorant about technology and management aspects. We have tried to seek a brief review
about the co-operative movement in the country in general and gradual beginning of co-operative sugar factories in Western Maharashtra.
Here we would like to mention about the role of
early organisation established for maintaining and promoting the interests of the sugar cane cultivators in the state.
This organisation was known as Deccan Sugar Institute. After independence and particularly after the formation of
independence of Maharashtra, the sugar industry spread in the state under the banner of co-operative sugar industry arising to promote the co-operative movement. In this context we need to mention the contribution of enginners, progressive
farmers and political leaders and their followers. Such as Late Annasaheb Shembekar, Raobahaddur Boravake, Vasantrao Dada Patil, Mamasaheb Mohol, Shivajirao Kale and ex-phultoned ruler and a Minister Maloji Naik Nimbalkar. During the
course of 1961 to 1990 the spread of sugar industry occured beyond Western and Southern Maharashtra. The ex-chief Ministers like V.P.Naik, S.B.Chavan, Vasant Dada Patil and lator on Barister A.R.Antuley, Babasaheb Bhosale and
Shivajirao Nilangekar were instrumented in using their good offices for initiating the opening of co-operative sugar
f
factories in Vidarbha, Marathwada region which were earlier the parts of earst while central provinces and the Nijam's state of Hyder^ad.
All the sugar factories in Maharashtra are totally different in working and more efficient than other factories in India. The sugar factories in Maharashtra are not only manufacturing sugar from sugarcane but also manufacture country liquor, denatured spirit from molasses, paper from baggasse and fertilisers from other waste material.
tEvery co-operative sugar factory in Maharashtra had made a very convenient arrangement for transport i.e.
carrying of sugarcane from the field of agriculturist to factory. Every co-operative sugar factory in Maharashtra takes the responsibility of its members from cutting the
X
26
sugar cane and upto transport the sugar cane to sugar factory. In addition to that, it supplies essential fertilisers and pesticides time to time to the members.
Some co-operative sugar factories also supply cement pipes for cannal.
Maharashtra Government declares the standard price of sugar cane before purchase by the co-operative sugar
factory. Due to this policy the farmer does not hesitate by the sugar factory. The first co-operative sugar factory in Maharashtra was started in Pravaranagar Dist. Ahmednagar and its position is very respectable in Maharashtra.
Maximum co-operative sugar factories conducts schools, colleges, social welfare centres, road constructions, gardening etc.
in their campus and location. This plays a vital role in welfare of society. The payment of dividend is made after the year ending.
The estimated cost for new sugar factory is
approximately Rs.25 crores. Out of which 45% State Government, Reserve Bank, National Co-operative Development Institute,
State Co-operative Banks, and 45% Indian finance corporation supplies for it. N0w-a-days, State Banks, Industrial
Development Bank, L.I.C. etc. also grants long term loans
f
for co-operative sugar factories. Reserve Bank of India has given authority to Maharashtra State Co-operative Bank for
issuing debentures and to finance long term basis to
co-operative sugar factories, 75% members of the co-operative sugar factory must be sugar cane growers, The daily work of sugar factory is conducted under the supervision of
Managing Director of the factory. The aims and objectives are decided by the Board of Directors which contains
farmers# labourers, Government and representative of the financial corporation.
Every State has its 'Sangh' such?types of State Sugar Factory Sanghs are in Maharashtra, Karnataka,
Gujarath, Andhra Pradesh and Tamilnadu States, In 1960-61, National Co-operative Sugar Factory Sangh was established.
This 'Sangh' helps and advices for establishing new sugar factories and also works as a mediator between other sugar factories. In addition it helps for import the machinery permission for production, import other necessary things time to time. One Sugar Engineer and one Sugar Technologist with vast experience guides this 'Sangh' and inspects and guides the sugar factories regarding machinery and
production method.
28 -
KEY CONCEPTS OP PERSONNEL MANAGEMENT
This part is being devoted to definitions functional meaning and its uses are treated as major criteria for
theoratical frame work and social work practices are also treated as significant consideration. In all besides
concepts in the field of Personnel Management are taken into account. The following concepts are being elaborated.
1. Definitionsj3f_Personnel ^Management * *
Prof.Michel J.Dulins defines# Personnel Management 1 as the 'Field of Management' vhich has to do with planning#
organising and controlling various operatives# functions of procurring# developing# maintaining and utilising labour force such that l) Objectives for which the company is established or attained economically and effectively.
2) Objectives of all levels of personnel are served to the highest possible degree and 3) Objectives of the community are duly considered and served. Thus it try to co-ordinate
J
the objectives of the personnel and objectives of the society (Prof,E.F.L.Brech defined the Personnel Management. 2
"Personnel Management is that part of management# progress
1. Prof.Michel J.Dulins- Personnel Management and Industrial delations- Dale Yoder-Page No.62.
2. Prof.E.F.L.Brech- Principles of Personnel Management,
which primary concerned with human constitution of an organisation."
According to Thomos G.Spatel, "Personnel Management is code of the way of organising and treating the
individual at work, so that they will get the greatest possible realisation at their intrinsic objectives thus
attaining maximum efficiency of themselves and their group and there by giving to the enterprise of which they are apart, in determining competition advantage and its optimum
results.M
It is clear from the above definitions that
Personnel Management makes use of definite principles for organisation creating individual at work and by using these principles they will develop themselves to the full as
individuals as members of the groups and they in term will give their best efforts to the enterprise,
* 2
According to Dale Yoder, he refers to, “Personnel Management as the manpower management by which human
resources are organised and directed in making their
contribution to current social individual goals." In this way according to him it is a manpower management and it is that part of management which organises and directs the
1. Prof.Thomos G.Spatel- An objectives of Personnel Administration- Page No.36 Sc 37.
2. Dale Yoder-Personnel Management Sc Industrial Rel.P.No,45-46
- 30
manpower (Labour) for the individual as well as social aims and needs,
The definition of Personnel Management adopted by the 1 Indian Institute of Personnel Management was that formulated originally by the institute of Personnel Management in U.K.
•Personnel Management is that part of management vhich is concerned with people at work and with their relationship within an organisation. It a pplies not only to industry
and commerce but to all fields of employment.
This definitions shows that the field of Personnel Management is very vast wide, the task of Personnel
Management is not only deal within the organisation but deal with the every part of human being,
According to Saxena, “ Personnel Management is that 2 part of management function which is primarily concerned with the human relationships within an organisation. Its objectives are the maintainance of those relationships on a basis by
which considerations of the well being of the individual
?
enables all those engaged and undertaking to make their personnel contributions to the effective working of that undertaking, '*
1, Personnel Management in India- Indian Institute of Personnel Management,
2, Labour Rroblems and Social Wel£are-By-s,R.Saxena- Chapter-I- Page No,17- 9,
This definition expresses that the Personnel Management include 1) Welfare side, 2) Personnel Side.
The recognition of the human personalities is
essential to maintain a good relation within the organisation.
If we can say that, the personal contact between the worker and employer is essential, by which the Personnel Department maintain necessary co-operation and contact between the
management and the worker and to implement a policy of human relations in the industry.
According to M.G.Jucius, "Personnel Management is that field of management which has to do with planning, organising and controlling various operatives, activities of procuring,, developing, maintaining and utilising labour
force in order that the objective and interest for which the company is established are attained as effectively and
economically as possible and the objectives and interest of labour itself* are served to the highest degree.
By this definition, we can understand that the field of Personnel Management is contained every thing for we
can say from planning to controlling activity,' developing neighbour skills and utilising labour force and all that.
According to these definitions Personnel Management is a
1. Personnel Management and Industrial Relations-Dale Yoder.
32 managem-ent of personnel at work. It has defined by different authorities, institutions, authors, but the meaning of all the definition is that the Personnel Management is science of planning, organising and
controlling the various operative functions of procuring, developing, maintaining and utilising labour force for the purpose of contributing a lot towards the accomplishment of the major goal of the organisation. Broadly, it is the
branch of general management which deals with simple at work level or the relationship between the employer and employee and vice-versa.
2. The Sghere_of_Managiement_v/ith_Intra_Ogerative Application which include_personnel_p'ractices :
tThe management denotes a body of enterprenuers/
aspirants of profit gainers to earn capital, credit in industrial economy. However, the management may be a body, association or organisation emerging or emerged. In Indian Society, the concept is underliriked with business, trade,
e
manufacturing process and bodies of business community.
The term ‘Management* is used for functional administration or policy and decision making. The term 'sphere of
management' implies the area or jurisdiction where in the management execute or aims to function and control.
In the context of existing study the term denotes the sphere of co-operative management which is varied and
complex.
INGRADIENTS OF PERSONNEL PRACTICES
The following are recognised as the ingradients of personnel practices.
1. Recruitment.
2. Selection.
3. Placement.
4. Training within the Industry.
5. Promotion.
6. Transfers. . 7. Job evolution.
8. Records.
Now we discuss these in details- 1. RECRUITMENT_AND_SSLECTION :
*
Recruitment and Selection are very important
functions of the base or the foundation of the building of Personnel Management. Yet, despite tremendous unemployment, the right type of labour is not too easy to find. Since new workers are still mainly drawn from the rural population,
they take time to adjust themselves to industrial life. Labour turnover and absenteeism constitute a continuing problem in industry. This underlines the need for a properly planned recruitment policy in order to minimise the disruption of work by constantly changing personnel. Whatever may be the
- 34 -
special local problem, it is undoubtedly a necessity to have a systematic and planned recruitment programme, as
proper selection and placement go a long way towards building up a stable working force, and eventually reducing labour
costs,
Edwin B.Flippo says that, 'Recruitment is the 1 process of searching for prospective employees and
stimulating to apply for job in organisation,1 2
The basis for a sound recruitment policy must be a consideration of the requirements of the organisation, with proper importance attached to replacement needs. Not only present requirements, but future possibilities should be
forecast and pre-planned in the absence of planned programme, present intake may be in excess of future
requirements, so the question of redundancy will later its ugly head, Whenever possible, steps should be taken to avoid
future redundancy, although there may be unforseen emergencies when it becomes unavoidable. Therefore, in drawing up a recruitment policy the object should be to
answer the question. What are the personnel requirements 2 in terras of numbers and skill to meet production needs and technical changes planned for current and near future years ?
1, Principles of Personnel Management-^Edwin B.Flippo, 2, Personnel Management in India- 1,1. P.M.
Means and Methods^of_communicating_vacancies "•
(Sources of Recruitment)
, 9
The means of recruitment are as follows- a. Within the organisation.
b. Badli or temporary worker.
c. Casual callers.
d. Employment Exchange.
e. Applicants introduced by friends and relatives in the organisation.
f. Advertisement.
g. Labour contractors.
a) Within the organisation s
Many industries notify the vacancies within the
f
organisation. This is in a sense asking the employees to participate in filling vacancies and this is not only highly appreciated, but is also a factor in building up good morale.
A planned promotion policy will take care of many vacancies in higher grdde.
b) Badli 0£_temporary *
Many industries keep badli lists or a central pool of personnel from which vacancies can be filled. This has the advantage that the personnel can be tested out in
different jobs and listed according to the type of job for which they are best fitted. Though a labour pool is often very useful, and in certain cases almost essential, it may
also be very uneconomic and watched carefully. It may create disputes regarding payment holidays, permanency etc.
5
\mmm libm
mimji immeisiTY. kcluawmi
- 36 -
c) Casual Callers
1
On their own initiative applicants either drop in or
?
send applications for jobs. The personnel officer, or one of his staff should, if possible, see all callers, for
sometimes a desirable type of employee may be discovered in this way.
d) Emplo^ent JExchange *
Employment Exchanges have been set-up by Government as a service to industry as well as to the seeker for
employment compulsory notification of all employment vacancies to the employment exchanges is now required by lawi This will help to provide more reliable statistics on employment and unemployment, which are badly needed for better planning. It has been made clear that while
notification of vacancies is compulsory, selection of
applicants still rests with management, who are free to call on other sources also.
e) Applicants^introduced by_friends and telativesjLn the organisation
s
Often employees introduce their relatives or friends hoping to find them jobs. This may prove a good source of recruitment# and indeed many employers prefers to take such persons, as something of their back ground is known, and are good worker may bring in another. A worker
1. Notification of Vacancies Act
who is no longer fit for work, but who cannot be retired because he has not reached the retirement age or because no retirement age is laid down in his terms of employment, may be persuaded to retire, if he knows that his son will be found employment. It is only natural that employees
are much concerned about openings for their sons. There are obviously arguments both for and against a policy of
preference for employees relatives and the decision on policy must rest with the management, taking the local circumstances
into account.
f) Advertisement :
Advertisement in newspapers is generally used when qualified or experienced personnel are not available from other sources. Senior posts are largelly filled by such
methods when they cannot be filled by promotion from within.
The advertisement gives the management a wider range of
candidates from which to choose. An advertisement in the name
»
of a well-known firm/industry may draw a response from a large number of good candidates.
g) Labour Contractors *
The system of recruiting through labour contractors, who are themselves employees is peculiar to India, though the system of contracting out work to an outside contractor is common enough, all over the world is observed that. 1
contractor's labour is more disciplined than directly
- 38 employed labour. Since, this is a discipline based on the fear of losing the job it is not at all in line with
modern concepts of management,
2. SELECTION J
After declaration of the required vacant post the second stage is 'Selection', The selection of proper
candidate amongst the applicant requires lot of skill. The criteria for the selection may differ from post to post e,g,
for technical personnel job test(trade test) is essential.
For more senior appointments the board interview may be more suitable. It should normally consists of members of equal status. The object of the board is to have an assesment of the candidate made by persons of differing outlook and interest. In short, according to Dale Yoder, '^election
is the process in which the candidate for employment is divided into two classes, those are to be offered
employment and those who are not,'
3. PLACEMENT :
Placement is the procedure when the candidate clears all the hardless. In the selection procedure is presumbly offered job. The main problem starts after the selection of candidate appointed or which is the suitable job. The act of offering the job is called placement. The selection procedure
1, Personnel Management and Industrial Relations- Dale Yoder
ends with the placement of the worker to the job.
Pigors and Myres says that placement has an
experiment element. But for most employees its a decisive step and should consist in matching what the job demands.
It is the responsibility of the personnel departmefct to evaluate the various factors required for a job. It is not easy to match all these fuller for a new employee who is
quite unknown to the job and environment. For this reason, the first placement generally carries which is the status of probationer.
By knowing all these things we can say that placement means the offering of job and it is the duty of the personnel Department that offer a job to new comer which is most
suitable to his ability, capability and qualification.
4. TRAINING_WITHIN_THS_INDUSTRY(T1W1Ij_) :
1 ’
Training within the industry was formally introduced in India with the assistance of I.L.0o experts. A number of organisations both in the public and private sector have had persons trained by the Training within the industry centre staff, so that they can undertake supervisory
training in their respective organisation. Training Within the Industry so far had mixed results, depending on the degree of active interest taken by top management, and the
1. The Central labour Institute Magazine, Bombay
40
intensity of the follow-up plats. The breaking down of supervisory skill into the basic aspects of instructing, Methods and Leadership, had too ready an appeal and the
simplicity with vhich the programmes are presented
9
resulted in many managements making the mistake of thinking that Training Within the Industry was a panacea for all
problems of supervisory training. Nevertheless, managements, who have realised the importance of training for supervisors, and have not been led into complacency by the simplicity of Training Within the Industry have obtained highly successful results from these programmes,
S. PROMOTION :
Promotion involves a'change from one job to another i.e. better in terms of status and responsibilities.
According to Pigors and Myras'*-, " Promotion is the transfer of an employee .to the job that pay more money or that enjoys some prefered^ status". Promotion is the term generally used for the advancement of an employee to a job carrying better terms and conditions and therefore, higher status. Upgrading is used to imply an increase of pay on the same job. The job itself may be up-graded to a higher scale of pay, or if
there are variable scales for the same job according to the skill acquired, up-grading may mean moving to a higher scale without changing the job.
1. Principles of Personnel Management- Pigors and Myres.
Whenever there is a vacancy in higher job, sound personnel policy requires that its filling should be by promotion from within if possible. If all such vacancies are filled from outside, there is no inducement for the existing staff to improve their efficiency.
The National Commission on Labour has suggested that where promotions are not based on known standards, the management should evolve a promotion policy in consultation with the recognised union vhere exists. The National
Commission on Labour has also suggested that as a general rule, particularly among the operative and clerical
categories in the lower rungs, seniority should be the basis of promotion. In respect of middle management, technical
supervisory and administrative personnel seniority-cum-merit should be the criteria. Tor high managerial, technical and administrative positions, merit alone should be guiding factor.
6. TRANSFERS :
A transfer is the moving of an employee from one job to another. Edrin B. FIippo1 defines the transfer, as ' A change in job, vhere the new job is substantially the equal to the old in pay status and responsibilities. *
1, Principles of Personnel Management-By- Edrin B.Flippo.
10591 A .
- 42 The point that substantially equal means the general nature of the duties and responsibilities remain the same though there may a change in their specific nature.
1
According to Dale Yoder,^ " A transfer involves the shifting of an employee to another without special reference to change responsibility or compensation."
The transfer may be classified on the following grounds.
1. On the basis of purpose.
2. On the basis of unit.
1. On the basis of purpose transfer contains- a) Production transfer,
b) Replacement transfer.
c) Versatility transfer.
d) Shift transfer.
e) Curative or Remedial transfer.
f) Precautionary transfer.
g) Personal transfer.
2. On the basis of unit transfer contains- a) selectional transfer.
b) Departmental transfer.
c) Interplan transfer.
1. Personnel^Management and Indastrial Relations. By-Dale Yoder
7. REVALUATION s
Job evaluation is a technique of personnel management, concerned with assessing the value of one job in relation to another, and it is a necessary adjust to the process of wage settlement by collective bargaining for it is only when each job has been properly evaluated that a sound wage structure can be built-up.
In industry it is accepted that a job which is more difficult, or which involves responsibility, effort skill or hazard, should be paid higher wage than one in vfoich
these demands are less exacting. Tribunal awards have largely decided the minimum wqge for unskilled jobs i.e. those jobs
in which these demands are least exacting. Therefore, to evolve a rational wage structure, taking into account these minimum levelsland the varying degree of relative job values,
is not too difficult a task. Unfortunately, in the part, the relative values of jobs were usually determined arbitrarily by the individuals who constituted the management, so that
the wage structure was neither rational nor defensible.
The wage an employee receives has both an absolute and a relative value. In absolute terms it meets his
financial needs and determines his living standards; in relative terms it a measure of his value to the company in terms of both job value and individual performance. Job
44
satisfaction requires first that the job demand is equal to, or slightly above, the capability of the man doing the job, and secondly thau the job is adequately
compensated in terms of money.
Before a programme of job evaluation is launched certain matters must be decided e.g. whom it will cover,
whether hourly paid jobs only or salaried jobs and upto what level whether outside consultants should be entrusted with the work, in what manner the employees will be
consulted and whether the time ana general climate are
appropriate for. launching the programme. The process of job evaluation involves the following steps,
1,, A thorough examination of ’the jobs,
2, The preparation of a job description and usually an analysis of job requirements needed for its successful
■ performance,
3, The comparison of one job with others,
4, The arrangement of jobs in their correct sequence in terras of values to the firm,
5, The relation of the sequence to a money scale, 8, RECORDS s
The need for accurate records and statistics to control employment and to asses the effectiveness of a company's personnel policy is now being increasingly felt.
Labour laws and labour disputes have also underlined the need! for maintaining regular and up-to-date records in the personnel department. A numbers of records have to be kept comply with the requirements of the law and to be available
for inspection, by Government officers. These include records of annual leave under the Factories Act, records of factory painting, white washing, or colour washing, records of accidents etc.
Records and statistics should never be regarded as ends in themselves, but as a means to greater efficiency in personnel administration. The criteria of good records is that information can be quickly extracted from them and that they will lend themselves to the analysis of current problems. Good records and well planned statistics, however, can become tools of good management in modern industry.
Well designed forms can provide reliable and objective evidence to assist management in assessing
employment needs, labour turnover, labour costs, retirement liabilities and so on. The forms in use should be appraised from time to time to see that they are meeting current
requirements. Records should simplify, not increase> work.
Records should so designed as to show at a glance the information likely to be required.
There is a need for a -through scudy of policy and procedure before designing suitable forms, taking into
- 46 account problems of promotion discipline, termination statutory requirements etcQ Although simplification of forms is necessary, care in drafting is also important.
The basic personnel forms are- i. Requisition form.
>
ii. Employment application form, iii. Interview and Assessment form,
iv. Individual Service Record form which contains a) Personal History.
b) Progress Report.
c) Leave Record.
d) General Information.
RETIREMENT _BENSFIT 3 :
The workers are the pillars of the industry as well as the country. The building of the modern industrialisation stands on these pillars. But: when we see that the condition of these pillars, we feel sorry. Because they cannot get
even one times meal a day. By knowing this we can say that the retitement provision for the workers are most necessary for their future well-being.
Some times it is also found that some old workers do not have children or any relatives, who look after them in their old age, they have not any source to earn and to live and such workers live a very life and so that the
miserable. Management should give him security of his provision of retirement henefits.
RETIREMENT i
The age retirement is not one of,the items
scheduled in the Industrial Employment (Standing Orders) Act and so it does not figure in the central Model Standing Orders, although the State of Maharashtra and West Bengal have
included it in their requirements. Some companies/industries have incorporated a retirement age in their standing orders,, Age of retirement and terms of retirement have been laid down in a large number of industrial awards, and in undertakings covered by these awards the only problem is to ascertain the proper age of the employee. Since no service records were kept until comparatively recently and in a many cases no
proper letter of appointment can be found on the files, it is sometimes difficult'to establish an employee's age and
i
length of service. Unions are generally in favour of fixing an age for superannuation in order to provide vacancies for new recruits, and opportunities for promotion, but the
interest of an individual, vhen he comes to the age of retirement, may not concide with the interest of the body of workmen as a whole, and retirements are often resisted by the individual on the ground of hardship.
Retirement benefit takas three forms- the contributory provident fund, gratuity or pension which can either by
48
contributory or non contributory. Traditionally, in India, the first two have been the common retiring benefits in industry, though pensions ate part of the terms of service of most permanent government employees. Although
discretionary gratuities were more usual for industrial
workers in the past such benefits are now granted to workers in a number of industries in terms of awards or agreement-s.
These were started as a purely voluntary form of employee service by a considerable number of the larger companies. They were common condition of service for office
staff, but less common in the factory, until industrial tribunals began to direct thb introduction of provident
funds in response to demands made by the workers. By 1952, when the Employees Provident Fund Act was passed, a good proportion of the larger industrial concerns already had provident fund or gratuity schemes. The Act set-up a state
T
fund to take over private prdvident funds in the majority of
*
industries.This Act has been extended and will eventually cover all industry. A most important change introduced by the Act was to make contributions payable on total
remuneration, i.e. basic wages plus dearness allowance, including the cash value of any food concession, instead of on basic pay only. State intervention has, therefore.
secured considerably higher provident fund benefits to the
employee on retirement. Thus the object of the provident fund is to provide the worker with a lump sum on retirement proportinate to the wages he earned during employment and built up from contributions made both by him and his employer.
s
GRATUiTY :
The approach to the question of gratuity is another instance of a complete change in concept during the last ten years. Gratuity according to the dictionary, is a money
present of amount fixed by the giver in recognition of an interior's good offices,, So gratuity in the old days was the means by which the employer rewarded a faithful employee on his retirement and helped to provide for his old age,.
Gratuity, though originally a discretionary gift of the employer, came to be cla-imed by employees, and accepted by industrial tribunals, as a condition of service, and so, like, bonus,.it has become a common source of dispute.
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