Areas of Social Work Practice I (Labour Welfare, HRM and Industrial Relations): Industry as a Sub-System of Society, Labour Welfare, its Theories, Principles and Legislation with the Four Labour Codes; HRM, HRD, Performance Management, Six Sigma, ISO, TQM, CSR and Corporate Governance; and Industrial Relations, the ILO, Collective Bargaining, Job Analysis, Manpower Planning and OD

This chapter takes the last two items of the ninth unit, labour welfare and human resource management, and personnel management and industrial relations. Industry was one of the first settings of Indian social work, through the labour welfare officers required by the Factories Act, and it remains one of the largest employers of social work graduates, in HR, industrial relations and CSR. The Management and Commerce courses on this platform teach HRM and industrial relations for managers; here they are taught as the social worker's field, from the welfare of workers to the social responsibility of companies. The four labour codes (on wages, 2019; industrial relations, social security, and occupational safety, health and working conditions, all 2020) were enacted to consolidate the older labour Acts and were brought into force with effect from 21 November 2025, when the Acts they consolidate were repealed; the classic Acts are taught as the framework the codes carry forward, and rule-level detail under the codes should be checked against the current notification. The syllabus's misspellings ("Reosurce", "Defintiion", "Globlazition") are corrected in the text.

1. Industry as a sub-system of society and the concept of labour welfare

Industry is a sub-system of society: it draws labour from families and communities, depends on the state for law and infrastructure, and in turn reshapes family life, migration, urbanisation, class and the environment. Modern industry in India began with the first cotton mill in Bombay in 1854 and the first jute mill at Rishra, near Calcutta, in 1855; the factory system brought long hours, child labour, unsafe conditions and slum housing, and with them the first factory laws, trade unions and welfare work. The Royal Commission on Labour (the Whitley Commission, reporting in 1931) recommended labour officers; the First National Commission on Labour (1966–69, chaired by P. B. Gajendragadkar) surveyed labour conditions after independence; and the Second National Commission on Labour (2002, chaired by Ravindra Varma) recommended consolidating the many labour laws into a few codes.

The ILO describes labour welfare as the services, facilities and amenities established in or near undertakings to enable workers to perform their work in healthy, congenial surroundings, with amenities conducive to good health and high morale. Welfare may be intra-mural, within the workplace (canteens, crèches, drinking water, rest rooms, first aid, safety), or extra-mural, outside it (housing, education, recreation, transport, medical care); and it may be statutory (required by law), voluntary (provided by employers) or mutual (organised by workers' own unions and cooperatives). Its objectives are humanitarian (to improve workers' lives), economic (to raise efficiency and reduce absenteeism and turnover) and civic (to develop responsibility and good relations). Its principles, as taught in Indian texts, include adequacy of wages (welfare is no substitute for fair wages), efficiency, re-personalisation (restoring the worker's individuality in large, impersonal organisations), totality of welfare across all levels, integration and coordination of services, association of workers in planning and administering welfare, responsibility and accountability, timeliness and self-help.

The seven theories of labour welfare taught in Indian texts
Theory of labour welfareBasis
Police theoryWithout compulsion employers would exploit workers, so the state must police them through welfare laws
Religion theoryWelfare as a religious duty or an investment in merit
Philanthropic theoryWelfare from love of humanity
Trusteeship (paternalistic) theoryEmployers hold resources in trust for workers (Gandhi)
Placating theoryWelfare to pacify organised, demanding workers
Public relations theoryWelfare to build the employer's image
Functional (efficiency) theoryWelfare as a means to raise efficiency and productivity

2. Labour legislation and the four labour codes

India's labour law grew as dozens of separate Acts. Among the most important are the Trade Unions Act 1926; the Industrial Employment (Standing Orders) Act 1946; the Industrial Disputes Act 1947, with its machinery of conciliation, arbitration and adjudication; the Factories Act 1948, which requires a welfare officer in factories employing 500 or more workers, a canteen where more than 250 are employed and a crèche where more than 30 women are employed; the Minimum Wages Act 1948; the Payment of Wages Act 1936; the Payment of Bonus Act 1965; the Equal Remuneration Act 1976; the Employees' State Insurance Act 1948; the Employees' Provident Funds and Miscellaneous Provisions Act 1952; the Payment of Gratuity Act 1972; the Maternity Benefit Act 1961; the Employees' Compensation Act 1923 (the Workmen's Compensation Act until it was renamed in 2009); the Contract Labour (Regulation and Abolition) Act 1970; the Inter-State Migrant Workmen Act 1979; the Unorganised Workers' Social Security Act 2008; the Bonded Labour System (Abolition) Act 1976; and the Child and Adolescent Labour (Prohibition and Regulation) Act 1986 (so renamed by its 2016 amendment).

The four labour codes
CodeMain Acts it consolidates
Code on Wages, 2019Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965, Equal Remuneration Act 1976
Industrial Relations Code, 2020Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947
Code on Social Security, 2020EPF Act 1952, ESI Act 1948, Payment of Gratuity Act 1972, Maternity Benefit Act 1961, Employees' Compensation Act 1923, Unorganised Workers' Social Security Act 2008 and others
Occupational Safety, Health and Working Conditions Code, 2020Factories Act 1948, Mines Act 1952, Contract Labour Act 1970, Inter-State Migrant Workmen Act 1979, Building and Other Construction Workers Act 1996, Working Journalists Act 1955 and others
⚠️ Enacted in 2019–20, in force from 21 November 2025
The four codes were passed by Parliament in 2019 and 2020 to consolidate the older Acts, but enactment is not commencement: all four were brought into force together with effect from 21 November 2025 by Gazette notification, and the Acts they consolidate were repealed from that date, subject to each Code's savings and transitional provisions. The central and state rules under the codes are being framed and notified in stages, with existing rules continuing meanwhile, so rule-level detail (forms, fees, registers, time limits) should be checked against the current notification. The classic Acts remain the vocabulary of the field and of the examination, and the codes largely carry their concepts forward.

3. Human resource management, HRD, performance management and quality

Human resource management is the management of people at work to achieve organisational goals while meeting employees' needs. It evolved from welfare work and personnel management, which were administrative and reactive, to HRM, which treats people as assets, and strategic HRM, which aligns HR with business strategy. Its scope covers acquisition (HR planning, recruitment, selection), development (training, career development), motivation (compensation, performance management) and maintenance (welfare, safety, employee relations). Its sub-systems are HR planning, recruitment and selection, training and development, performance management, compensation and benefits, employee relations and HR information systems. The Harvard model (Michael Beer and colleagues, 1984) links stakeholder interests and situational factors to HRM policy choices and to HR outcomes, the "four Cs" of commitment, competence, congruence and cost-effectiveness, and so to long-term consequences for individuals, the organisation and society. The Michigan or matching model (Charles Fombrun, Noel Tichy and Mary Anne Devanna, 1984) fits HR practices, selection, appraisal, rewards and development, to strategy; David Guest's model (1987) and the Warwick model (1990) followed. Theories of motivation underlie them: Maslow's hierarchy, Frederick Herzberg's two-factor theory (1959) of hygiene factors and motivators, and Douglas McGregor's Theory X and Theory Y (1960).

Human resource development, a term coined by Leonard Nadler around 1970, is the continuous process of developing employees' capabilities, their potential and the organisation's culture. In India, Larsen and Toubro set up what is usually described as the first HRD department in 1975, guided by T. V. Rao and Udai Pareek, whose HRD system included performance appraisal, potential appraisal, feedback and counselling, career planning, training, organisation development, rewards and quality of work life. Performance management systems range from traditional methods (ranking, paired comparison, forced distribution, graphic rating scales, and John Flanagan's critical incident technique, 1954) to modern ones: management by objectives (Peter Drucker, The Practice of Management, 1954), behaviourally anchored rating scales, 360-degree feedback, assessment centres and the balanced scorecard of Robert Kaplan and David Norton (1992), with its financial, customer, internal process, and learning and growth perspectives.

Quality approaches connect HR with operations. Total Quality Management makes quality the responsibility of everyone, through customer focus, continuous improvement (kaizen) and employee involvement; its founders include W. Edwards Deming (the fourteen points and the plan-do-check-act cycle), Joseph Juran (the quality trilogy of planning, control and improvement), Philip Crosby (zero defects; Quality Is Free, 1979) and Kaoru Ishikawa (the fishbone diagram and quality circles). Six Sigma, developed at Motorola in 1986, aims at no more than 3.4 defects per million opportunities, using the DMAIC cycle of define, measure, analyse, improve and control, and trained "belts". ISO standards certify management systems: ISO 9001 for quality (current edition 2015), ISO 14001 for environmental management and ISO 45001 (2018) for occupational health and safety; SA 8000 (1997) sets social accountability standards for workers' rights.

4. Corporate social responsibility and corporate governance

Corporate social responsibility is the responsibility of a company for its impact on society and the environment, beyond its legal and economic obligations. Archie Carroll's pyramid (1991) arranges four responsibilities: economic (be profitable) at the base, then legal (obey the law), ethical (do what is right and fair) and, at the top, philanthropic (be a good corporate citizen). John Elkington's triple bottom line (1994) asks companies to account for people and planet as well as profit. Models of CSR include the ethical model rooted in Gandhi's trusteeship, the statist model of the post-independence public sector, the liberal model of Milton Friedman, who argued in 1970 that the social responsibility of business is to increase its profits, and the stakeholder model of R. Edward Freeman (1984), which holds that companies must balance the interests of all who affect or are affected by them. Its components include community development, employee welfare, environmental stewardship, ethical supply chains and responsible products, and its approaches range from philanthropy through strategic CSR, which links social investment to business strengths, to shared value.

India made CSR spending mandatory through section 135 of the Companies Act 2013, in force from 1 April 2014. It applies to a company with a net worth of ₹500 crore or more, or a turnover of ₹1,000 crore or more, or a net profit of ₹5 crore or more in the immediately preceding financial year. Such a company must constitute a CSR committee of the board (except where the obligation is small, as the rules provide) and spend at least 2 per cent of its average net profits of the three immediately preceding financial years on activities listed in Schedule VII, such as eradicating hunger and poverty, education, health, gender equality, environmental sustainability, rural development and disaster relief. Amendments in force from 2021 require unspent amounts to be transferred to a Schedule VII fund or, for ongoing projects, to an unspent CSR account, and provide penalties for default. Corporate governance is the system by which companies are directed and controlled, a definition from the Cadbury Report (1992); in India it is shaped by the Companies Act 2013 (independent directors, audit committees and, for specified companies, at least one woman director), SEBI's Listing Obligations and Disclosure Requirements Regulations 2015 and the reports of the Kumar Mangalam Birla (1999), Narayana Murthy (2003) and Uday Kotak (2017) committees.

🎯 Why CSR is a social work field
Mandatory CSR created a large flow of funds into education, health, livelihoods and rural development, most of it spent through implementing agencies. Social workers design needs assessments, plan and monitor projects, build community participation and conduct impact assessments, and they can push CSR away from one-off philanthropy towards sustained, community-owned change.

5. Personnel management and industrial relations, the ILO, collective bargaining and OD

Industrial relations are the relations among employers, employees and their organisations, and the state, in the workplace and the wider economy. Their objectives are industrial peace, productivity, fair terms of employment, workers' welfare and industrial democracy; their scope covers trade unions, collective bargaining, disputes and their settlement, grievance handling, discipline and workers' participation in management. Their determinants are economic, technological, social, political, legal and institutional; their reflectors or indicators are the frequency of strikes and lockouts, absenteeism, labour turnover, grievances, disciplinary cases and productivity. John Dunlop's systems model (Industrial Relations Systems, 1958) sees an industrial relations system as made up of actors (managers, workers and their organisations, and government agencies), contexts (technology, market or budgetary constraints and the distribution of power), and a shared ideology, which together produce a "web of rules". Alan Fox distinguished unitary, pluralist and radical frames of reference; the Oxford school of Allan Flanders studied the institutions of job regulation; the human relations approach grew from Elton Mayo's Hawthorne studies (1924–32); and the Gandhian approach, rooted in trusteeship and arbitration, was practised in the Ahmedabad Textile Labour Association founded in 1920.

Globalisation has changed industry and industrial relations: global value chains, competition and technology have brought flexible and contract employment, informalisation, platform and gig work, and weaker unions, while raising demands for labour standards in supply chains. The International Labour Organization was created in 1919 under the Treaty of Versailles, with headquarters in Geneva, and became the first specialised agency of the United Nations in 1946; it is unique in its tripartite structure of governments, employers and workers, it received the Nobel Peace Prize in 1969, and its Declaration of Philadelphia (1944) affirmed that "labour is not a commodity". Its functions are setting international labour standards through conventions and recommendations, supervising their application, technical cooperation and research, and promoting its Decent Work Agenda (1999). Its fundamental conventions, ten since the addition of occupational safety and health in 2022, cover forced labour (C29, C105), freedom of association and collective bargaining (C87, C98), discrimination (C100, C111), child labour (C138, C182) and occupational safety and health (C155, C187). India has ratified six of the original eight, those on forced labour, discrimination and child labour, but not C87 and C98.

Collective bargaining, a term from Sidney and Beatrice Webb's Industrial Democracy (1897), is negotiation between employers and workers' organisations over wages and conditions; Richard Walton and Robert McKersie (1965) distinguished distributive bargaining (dividing a fixed sum), integrative bargaining (solving shared problems), attitudinal structuring and intra-organisational bargaining. Job analysis collects information about a job to produce a job description (duties, responsibilities, conditions) and a job specification (the qualifications, skills and qualities required), through observation, interviews, questionnaires, critical incidents and work diaries. Manpower or human resource planning forecasts demand for and supply of employees, identifies gaps and plans recruitment, training, redeployment and succession, using trend and ratio analysis, the Delphi technique and Markov analysis. Organisational behaviour studies individuals (perception, personality, attitudes, motivation), groups and the organisation (structure, culture, change). Organisation development, in Richard Beckhard's definition (1969), is a planned, organisation-wide effort, managed from the top, to increase effectiveness and health through planned interventions using behavioural science knowledge; it draws on Kurt Lewin's unfreezing, changing and refreezing, and its interventions include sensitivity training (T-groups), survey feedback, team building, process consultation (Edgar Schein), Grid OD based on Robert Blake and Jane Mouton's Managerial Grid (1964), job redesign, quality circles and third-party peacemaking.

🧠 Dunlop's system in one line
Three actors (management, workers, the state) work within three contexts (technology, market, power), bound by a shared ideology, to produce a web of rules. If a question lists "actors, contexts, ideology and rules", it is Dunlop (1958); if it lists "unitary, pluralist, radical", it is Fox.

Key takeaways

  • Industry as a sub-system of society; the first mills of 1854 and 1855; the Royal Commission on Labour (1931), the First (1966–69) and Second (2002) National Commissions on Labour; labour welfare (ILO) intra-mural and extra-mural, statutory, voluntary and mutual; the seven theories from police to functional; principles from adequacy of wages to self-help.
  • Classic Acts: Trade Unions 1926, Standing Orders 1946, Industrial Disputes 1947, Factories 1948 (welfare officer at 500 workers, canteen above 250, crèche above 30 women), Minimum Wages 1948, ESI 1948, EPF 1952, Bonus 1965, Gratuity 1972, Contract Labour 1970; the four codes (Wages 2019; Industrial Relations, Social Security and OSH 2020) consolidate them, in force from 21 November 2025, with the old Acts repealed from that date.
  • HRM: welfare and personnel to strategic HRM; Harvard (1984, four Cs), Michigan (1984), Guest (1987), Warwick (1990); Herzberg (1959), McGregor (1960); HRD (Nadler; L&T 1975; Rao and Pareek); appraisal from critical incidents (1954) to MBO (Drucker 1954), 360-degree and the balanced scorecard (1992); TQM (Deming, Juran, Crosby, Ishikawa), Six Sigma (Motorola 1986, 3.4 DPMO, DMAIC), ISO 9001, 14001, 45001, SA 8000.
  • CSR: Carroll's pyramid (1991), triple bottom line (1994), trusteeship, statist, Friedman's liberal (1970) and Freeman's stakeholder (1984) models; section 135 of the Companies Act 2013 (from 1 April 2014): net worth ₹500 crore, turnover ₹1,000 crore or net profit ₹5 crore; 2 per cent of average net profits of three years; Schedule VII; governance from Cadbury (1992) to SEBI LODR 2015 and the Birla, Murthy and Kotak committees.
  • IR: objectives, scope, determinants and reflectors; Dunlop's systems model (1958), Fox's frames, the Oxford school, Hawthorne and the Gandhian approach (Ahmedabad, 1920); ILO (1919, Geneva, tripartite, UN agency 1946, Nobel 1969, Philadelphia 1944, ten fundamental conventions; India has not ratified C87 and C98); collective bargaining (Webbs 1897; Walton and McKersie 1965), job analysis, HR planning, OB and OD (Beckhard 1969; Lewin; T-groups, survey feedback, Schein, Grid OD 1964).

Practice questions (10)

Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.

  1. Under the Factories Act 1948, a factory must appoint a welfare officer when it ordinarily employs at least:

    1. 250 workers
    2. 30 women workers
    3. 500 workers
    4. 100 workers
    Show answer

    Answer: C — 500 workers

    A welfare officer is required where 500 or more workers are ordinarily employed. The 250 threshold relates to canteens and the 30 women threshold to crèches, which is why they are tempting distractors.
  2. Six Sigma aims at no more than how many defects per million opportunities? Type the number.

    Numerical answer — type the value.

    Show answer

    Answer: 3.4

    Six Sigma's target is 3.4 defects per million opportunities, pursued through the DMAIC cycle of define, measure, analyse, improve and control. It was developed at Motorola in 1986.
  3. The model that describes an industrial relations system in terms of actors, contexts, an ideology and a "web of rules" was proposed by:

    1. Alan Fox
    2. John Dunlop
    3. Elton Mayo
    4. Richard Beckhard
    Show answer

    Answer: B — John Dunlop

    John Dunlop set out the systems model in Industrial Relations Systems (1958). Fox distinguished unitary, pluralist and radical frames, Mayo led the Hawthorne studies, and Beckhard defined organisation development.
  4. Which of the following ILO fundamental conventions has India NOT ratified? Select all that apply.

    1. C98, Right to Organise and Collective Bargaining
    2. C29, Forced Labour
    3. C87, Freedom of Association and Protection of the Right to Organise
    4. C182, Worst Forms of Child Labour
    Show answer

    Answer: A — C98, Right to Organise and Collective Bargaining; C — C87, Freedom of Association and Protection of the Right to Organise

    India has not ratified C87 and C98, the conventions on freedom of association and collective bargaining. It has ratified C29 and C105 on forced labour, C100 and C111 on discrimination, and C138 and C182 on child labour (the last two in 2017).
  5. In Archie Carroll's pyramid of corporate social responsibility, the responsibility at the top of the pyramid is:

    1. Philanthropic
    2. Legal
    3. Economic
    4. Ethical
    Show answer

    Answer: A — Philanthropic

    Carroll's pyramid runs, from the base, economic, legal, ethical and philanthropic. Economic responsibility is the foundation on which the others rest, and philanthropy, being a good corporate citizen, sits at the top.
  6. Assertion (A): Section 135 of the Companies Act 2013 requires eligible companies to spend at least 2 per cent of their average net profits of the three preceding financial years on CSR. Reason (R): Corporate social responsibility in India is purely voluntary and has no statutory basis. Choose the correct option.

    1. Both A and R are true, and R is the correct explanation of A
    2. Both A and R are true, but R is not the correct explanation of A
    3. A is true, but R is false
    4. A is false, but R is true
    Show answer

    Answer: C — A is true, but R is false

    The assertion is true and the reason false. Since 1 April 2014 section 135 has made CSR spending mandatory for companies meeting the net worth, turnover or net profit thresholds, with amendments from 2021 adding rules on unspent amounts and penalties.
  7. Which of the following Acts is consolidated into the Industrial Relations Code 2020 rather than the Code on Wages 2019?

    1. The Minimum Wages Act 1948
    2. The Payment of Bonus Act 1965
    3. The Equal Remuneration Act 1976
    4. The Industrial Disputes Act 1947
    Show answer

    Answer: D — The Industrial Disputes Act 1947

    The Industrial Relations Code consolidates the Trade Unions Act, the Standing Orders Act and the Industrial Disputes Act. The Minimum Wages, Payment of Bonus and Equal Remuneration Acts, with the Payment of Wages Act, are consolidated in the Code on Wages.
  8. The theory of labour welfare that sees welfare as a way of pacifying organised and demanding workers is the:

    1. Police theory
    2. Trusteeship theory
    3. Placating theory
    4. Functional theory
    Show answer

    Answer: C — Placating theory

    The placating theory treats welfare as a means of appeasing labour, like sweets for a crying child. The police theory relies on state compulsion, trusteeship on employers holding resources for workers, and the functional theory on efficiency.
  9. Which of the following are organisation development (OD) interventions? Select all that apply.

    1. Process consultation
    2. Survey feedback
    3. Grid OD based on the Managerial Grid
    4. Statutory audit of the company's accounts
    Show answer

    Answer: A — Process consultation; B — Survey feedback; C — Grid OD based on the Managerial Grid

    Survey feedback, process consultation (Edgar Schein) and Grid OD (Blake and Mouton) are classic OD interventions using behavioural science to improve organisational effectiveness. A statutory audit of accounts is a legal financial requirement, not an OD intervention.
  10. In the Harvard model of HRM, the "four Cs" of HR outcomes are:

    1. Commitment, competence, congruence and cost-effectiveness
    2. Capital, control, culture and change
    3. Customer, cost, convenience and communication
    4. Collaboration, campaign, contest and consensus
    Show answer

    Answer: A — Commitment, competence, congruence and cost-effectiveness

    Beer and colleagues (1984) named commitment, competence, congruence and cost-effectiveness as the HR outcomes. Customer, cost, convenience and communication are a marketing framework, and collaboration, campaign and contest are Warren's change strategies.