Commerce & Accountancy 2021 Paper II 50 marks 150 words Compulsory Explain

Paper II — Q5

(a) Strike vs. Lockout 10 (b) Performance Management 10 (c) Philosophy of Workers' Participation in Management 10 (d) Scope of…

Explain the following in about 150 words each : 10×5=50

(a)

Strike vs. Lockout 10

(b)

Performance Management 10

(c)

Philosophy of Workers' Participation in Management 10

(d)

Scope of Industrial Relations 10

(e)

Labour Absenteeism 10

हिंदी में प्रश्न पढ़ें

निम्नलिखित में से प्रत्येक को लगभग 150 शब्दों में स्पष्ट कीजिए : 10×5=50

(a)

हड़ताल बनाम तालाबंदी 10

(b)

निष्पादन प्रबन्ध 10

(c)

प्रबन्ध में कामगारों की सहभागिता का दर्शन 10

(d)

औद्योगिक संबंध का क्षेत्र 10

(e)

श्रम अनुपस्थिति 10

Q5 of the 2021 UPSC Mains Commerce & Accountancy Paper II, as printed
The question as printed in the 2021 Commerce & Accountancy paper

Model answer

Drafted with AI by UPSC Answer Check against this question's marking rubric, to the 150-word length. UPSC does not publish answers for Mains — this is one way to score well, not an official key. How we build rubrics and answers.

(a) Strike versus lockout

Both are forms of industrial action that stop work. A strike is a cessation of work by a body of workers acting together, or a concerted refusal to continue work. A lockout is the temporary closing of the workplace, suspension of work or refusal by the employer to continue employing workers (earlier defined in Section 2(q) and 2(l) of the Industrial Disputes Act, 1947, now in the Industrial Relations Code, 2020).

  • Initiator: workers in a strike; the employer in a lockout.
  • Purpose: a strike is a weapon of labour to press demands such as pay or conditions; a lockout is a weapon of management to resist demands or enforce its terms.
  • Nature: a strike is a refusal to work; a lockout is a refusal to give work, but the employment relationship continues.
  • Legal position: neither is illegal in itself, but both are illegal if they breach the Code's conditions (notice, and no stoppage during conciliation or adjudication). The Code requires 60 days' notice for strikes in every industrial establishment and a similar notice for lockouts. A lockout is different from a layoff or closure, which arise from business reasons.

An example of a strike is the stoppage of work by factory workers over a wage dispute, and of a lockout is the shutting of a plant by management after indiscipline.

(b) Performance management

Performance management is a continuous process of setting goals, monitoring, developing and rewarding the performance of individuals and teams so that they contribute to the objectives of the organisation. It is wider than performance appraisal, which is only the periodic review of one step.

The main components are:

  • Planning: agree on goals, KPIs or targets with each employee, in line with organisational strategy, as in management by objectives.
  • Monitoring and coaching: continuous tracking of progress with feedback and support.
  • Appraisal: a periodic, fair review of results and behaviour against the agreed measures.
  • Development: training and career plans to close gaps.
  • Reward and recognition: pay, promotion or bonus linked to results.
  • Review and improvement of the system itself.

A performance metric could be sales per employee, defect rate or customer satisfaction. Its purposes are to improve individual and organisational performance, to align effort with strategy, to inform pay and promotion decisions and to build employee engagement.

(c) Philosophy of workers' participation in management (WPM)

The philosophy of WPM is industrial democracy: workers are partners and not mere hired hands, and people who are affected by decisions should have a say in them. It rests on human dignity, the belief that participation raises responsibility and motivation, and that harmony serves both sides. In India, it is reflected in the Directive Principle of Article 43A (inserted in 1976).

Its benefits to workers are job satisfaction, dignity, a voice and ownership. Benefits to management are better decisions using shop-floor knowledge, acceptance of change, less conflict and higher productivity.

The forms of participation include works committees, joint management councils, shop councils, joint councils, worker directors on the board, employee ownership (such as ESOPs), quality circles and collective bargaining. Germany's co-determination is a well-known model. In practice, participation in India has been limited by weak unions and managerial reluctance, and succeeds only where there is mutual trust.

(d) Scope of industrial relations

Industrial relations (IR) covers the relationships between employers, employees and their organisations, and the role of the state, in the workplace. Its scope includes:

  • Employer-employee relations: communication, grievance handling, discipline and participation.
  • Labour-management relations through unions: recognition of unions, collective bargaining and settlements.
  • Prevention and settlement of disputes through conciliation, arbitration and adjudication, and the right to strike and lock out.
  • Labour legislation: the Industrial Relations Code, 2020 (which replaced the Industrial Disputes Act, 1947, the Trade Unions Act, 1926 and the Standing Orders Act, 1946), wages, social security and safety codes.
  • Working conditions, wages, welfare and workers' education.
  • The role of the state and tripartite bodies such as the Indian Labour Conference.

A wage negotiation between a union and management is a typical IR matter. The scope is therefore wider than disputes alone, and it is tripartite, involving workers, management and government.

(e) Labour absenteeism

Labour absenteeism is the failure of an employee to report for work when scheduled to do so. It can be authorised (sanctioned leave, sickness) or unauthorised, and the second kind is the real problem. It is measured as man-days lost ÷ man-days scheduled × 100.

Causes:

  • Personal: illness, accidents, family responsibilities and social or religious events.
  • Work-related: poor conditions, low wages, monotony, harsh supervision and low morale.
  • Social and environmental: transport problems, housing, the migrant worker's links with the village, and agricultural seasons.
  • Others: alcoholism, indebtedness and weak discipline.

Effects:

  • Loss of output and delays, idle machines and higher overtime and cost.
  • Poor quality, disruption of production and an extra burden on present workers, which lowers team morale.

Remedies include better working conditions, fair wages, attendance incentives, a sound leave policy, health and housing facilities and counselling.

How this answer will be evaluated

Framework: Industrial Relations & Human Resource Management

What earns full marks: Clear, concise, and accurate with specific examples and legal references.

Evaluation rubric

Each sub-part is marked on its own, against the marks and word limit printed on the paper.

  1. (a) Distinguish between Strike and Lockout based on initiator, nature, and legal status. 10 marks · 150 words

    compare— paired headings or point-wise contrast → key differences → significance → conclusion

    Must cover

    • Identify Strike as action by workers
    • Identify Lockout as action by employer
    • Mention the legal status under the Industrial Relations Code, 2020 (earlier the Industrial Disputes Act, 1947)
    • Provide one example of each

    Loses marks

    • Confusing the initiator of the action
    • Failing to distinguish the legal consequences

    Earns more

    • Reference to the definitions in the Industrial Relations Code, 2020 (earlier Section 2(q) and 2(l) of the ID Act, 1947)
    • Mention of 'sudden stoppage of work' vs 'temporary closure'

    Extra mark

    • Citing a specific landmark case law
  2. (b) Define Performance Management and outline its key components or process steps. 10 marks · 150 words

    explain— definition/context → points in order → small example → short close

    Must cover

    • Provide a clear definition of Performance Management
    • List key components (e.g., planning, monitoring, appraisal)
    • Mention the purpose (improving individual/organizational performance)
    • Provide a brief example of a performance metric

    Loses marks

    • Defining it only as 'appraisal' without the continuous process
    • Lack of specific components or steps

    Earns more

    • Mentioning KPIs or OKRs
    • Distinguishing it from simple performance appraisal

    Extra mark

    • Referencing a specific performance management model (e.g., MBO)
  3. (c) Explain the philosophy behind Workers' Participation in Management (WPM). 10 marks · 150 words

    explain— definition/context → points in order → small example → short close

    Must cover

    • Define the core philosophy (democracy in industry)
    • Mention the benefits for workers (job satisfaction, ownership)
    • Mention the benefits for management (better decisions, reduced conflict)
    • Provide one example of a WPM mechanism (e.g., works council)

    Loses marks

    • Failing to explain the 'why' or underlying philosophy
    • Listing only mechanisms without the philosophical basis

    Earns more

    • Referencing the concept of 'industrial democracy'
    • Mentioning specific models like the German Co-determination

    Extra mark

    • Citing a specific Indian policy or committee report on WPM
  4. (d) Outline the scope of Industrial Relations, covering its key areas of study and practice. 10 marks · 150 words

    explain— definition/context → points in order → small example → short close

    Must cover

    • Define the scope as the study of relationships in the workplace
    • List key areas (e.g., labor laws, collective bargaining, dispute resolution)
    • Mention the stakeholders involved (workers, management, government)
    • Provide one example of an IR issue (e.g., wage negotiation)

    Loses marks

    • Narrowing the scope to only 'labor disputes'
    • Failing to mention the tripartite nature (workers, management, state)

    Earns more

    • Mentioning the role of trade unions
    • Referencing the Industrial Relations Code, 2020 (which replaced the Industrial Disputes Act, 1947)

    Extra mark

    • Citing a specific IR body or commission
  5. (e) Define Labour Absenteeism and discuss its primary causes and effects. 10 marks · 150 words

    explain— definition/context → points in order → small example → short close

    Must cover

    • Define Labour Absenteeism (unauthorized absence from work)
    • List at least two causes (e.g., health, dissatisfaction, transport)
    • Mention the effects on the organization (reduced productivity, increased costs)
    • Provide one example of a cause and its effect

    Loses marks

    • Defining it only as 'leaves'
    • Failing to mention the impact on the organization

    Earns more

    • Distinguishing between authorized and unauthorized absence
    • Mentioning the impact on team morale

    Extra mark

    • Citing a specific statistic on absenteeism rates
What "Explain" is asking you to do

Make the working of something clear — what sets it off, what follows from what, and what it produces. Explain is the Commission's mechanism word: it dominates the technical papers and the “explain why” stems, where the marks sit in the causal chain and not in the label.

Structure that answers it

State what it is → the initiating condition → the chain of cause, step by step → an instance where it plays out → what the chain produces

Where marks are lost

Describing what something looks like instead of why it works that way. Naming the stages without linking them reads as description too.

All UPSC directive words, compared →

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