Academic journal article Advances in Management

Evaluation of Operational Performance of Trade Unions in TANCEM -A Study

Academic journal article Advances in Management

Evaluation of Operational Performance of Trade Unions in TANCEM -A Study

Article excerpt


The concept of trade union was evolved for the purpose of bridging the gap between the employers and employees of an organization. Thereafter number of amendments took place on its originality, however the basic idea and the theme of the concept never changed. The significance and the role of trade unions are very important in all kinds of organizations especially for public limited companies. This study is indented to evaluate the performance of trade unions in TANCEM, Ariyalur. After taking all due analysis about the collected data, the outcomes revealed that the overall performance of the trade unions which are functioning in TANCEM is in an appreciable mode. The trade unions are discharging their functions well.

Keywords: Trade unions, Performance, Evaluation, TANCEM.


Like all other economic terms, it seems in the fitness of the context to first delineate the contours of the expression "trade union" for the better understanding of it. Different authors have defined trade union in different ways. The Webbs' defined a trade union as "a continuous association of wages earners for the purpose of maintaining or improving the conditions of their working lives. For Cole1, "a trade union means an association of workers in one or more occupations - an association carried on mainly for the purpose of protecting and advancing the members' economic interests in connection with their daily work".

According to Section 2[b] of the Trade Unions Act of 1926, "a trade union is any combination of persons, whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers, or between workers and workers and for imposing restrictive conditions on the conduct of any trade or business and includes the federation of two or more trade unions. It is an important service organization for the employees enabling a group, a class in industry or trade to bargain with any other class or group on equal footing.

Types of Trade Unions

In general, there are three types of labour unions: the industrial unions, the trade unions and the employee associations.

An industrial union is a union composed primarily of semiskilled blue-collar employees in the manufacturing industries. The industrial union is often referred to vertical union. It is vertical in the sense that it includes all workers in a particular company or industry regardless of their occupation. It, thus, constitutes a mixture of skills and lacks the homogeneity in skill.

A trade union, also called craft union, is an association of workers cutting across many companies and industries. It is called a horizontal union in the sense that its members belong to one craft or a closely related group of occupations.

Review of Literature

Trade Unions have vital and constructive role in improving the quality of life of the workers. They should evince greater interest in welfare programmes of their members, such as education including literacy, health and family planning and recreational and cultural activities. They can also promote personal and environmental hygiene and a sense of thrift. Government can consider some financial aid to those trade unions which take up such welfare activities. Such involvement in constructive activities would help trade unions in furthering the interests of their members."

Gomez-Mejia et al5 stated that industrial organizations for their survival in competitive market condition have given emphasis on gaining support from employees, mutual trust and confidence building, importance on unions, improved career and salary tracks, retirement benefits and retraining measures.

Pettinger9 opined that now trade unions are adopting a cooperative attitude towards the management in contrast to the previous conffontationist attitude. At the core of this, it is a fundamental shift in the relationship between employers and trade unions, following the gradual realization that the interests of all are best served through harmonious rather than adverse industrial relations. …

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