Commerce & Accountancy 2025 Paper II 50 marks Discuss

Paper II — Q8

(a) What should be done to improve the work culture in our country ? Give suitable suggestions. (10 marks) (b) Define trade…

(a)

What should be done to improve the work culture in our country ? Give suitable suggestions. 10 marks

(b)

Define trade union. What are the challenges faced by trade unions in present time ? Elaborate. 20 marks

(c)

Is there any difference between union participation and employee participation ? Discuss the pros and cons of both and suggest whether and how they can coexist. 20 marks

हिंदी में प्रश्न पढ़ें
(a)

हमारे राष्ट्र में कार्य संस्कृति में सुधार लाने के लिये क्या-क्या किया जाना चाहिये। उपयुक्त सुझाव दीजिये। (10 अंक)

(b)

श्रम संघ को परिभाषित कीजिये। वर्तमान समय में श्रम संघों को कौनसी चुनौतियों का सामना करना पड़ता है ? विस्तार से व्याख्या कीजिये। (20 अंक)

(c)

क्या श्रम संघ सहभागिता तथा कर्मचारी सहभागिता के मध्य कोई भिन्नता है ? दोनों के पक्ष-विपक्ष की विवेचना कीजिये और सुझाव दीजिये कि वे किस प्रकार सह-अस्तित्व में रह सकते हैं। (20 अंक)

Q8 of the 2025 UPSC Mains Commerce & Accountancy Paper II, as printed
The question as printed in the 2025 Commerce & Accountancy paper

Model answer

Drafted with AI by UPSC Answer Check against this question's marking rubric, to the expected 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) Improving work culture in India

Transforming India’s work culture requires a three-dimensional reform across organizational, technological, and socio-cultural systems:

Organizational Systems: Enterprises must transition from hierarchical, command-and-control models to decentralized, performance-oriented governance. Implementing transparent appraisal mechanisms, fair incentive structures, employee recognition programs, and continuous capability development under modern HR practices fosters accountability and intrinsic motivation.

Technological Integration: Adapting to Industry 4.0 requires extensive upskilling and reskilling initiatives aligned with the Skill India framework. Organizations must leverage digital tools to automate routine tasks, implement agile workflows, and support flexible hybrid arrangements while safeguarding workers against digital fatigue.

Socio-Cultural Reforms: Fostering ethical conduct, psychological safety, and work-life balance is vital. Workplaces must ensure strict compliance with the POSH Act, 2013, expand maternity and crèche entitlements, eliminate gender wage gaps, and promote diverse, inclusive leadership to build an equitable corporate ethos.

(b) Trade unions: definition and contemporary challenges

Section 2(zl) of the Industrial Relations Code, 2020 (which replaced the Trade Unions Act, 1926 when the labour codes came into force on 21 November 2025, retaining the definition of its section 2(h)) defines a trade union as any combination, whether temporary or permanent, formed primarily for regulating the relations between workers and employers, between workers and workers, or between employers and employers, and it includes a federation of trade unions.

In the contemporary economic landscape, trade unions face severe structural and operational headwinds:

Informalization and the Gig Economy: With close to 90% of India’s workforce in informal employment, and the rapid expansion of platform and gig work, conventional employer-employee ties have blurred, leaving millions outside traditional collective bargaining mechanisms.

Declining Density and Structural Shifts: Automation, the growth of the knowledge and service sectors, and progressive individual-centric Human Resource Management strategies have weakened the traditional blue-collar base, leading to declining union density.

Multiplicity and Inter-Union Rivalry: The proliferation of enterprise-level unions and fragmented plant-level factions dilutes collective bargaining power and promotes zero-sum competition over worker representation.

Political Interference and External Leadership: Excessive affiliation with political parties often subordinates shop-floor grievances to broader partisan agendas, generating conflict between external leadership priorities and local worker welfare.

Regulatory Restructuring: The rationalization under the Industrial Relations Code, 2020 introduces stricter thresholds for legal strikes and trade union recognition, compelling unions to re-evaluate their operational strategies: 14 days' strike notice now applies to all industrial establishments, and a union needs 51% membership to become the sole negotiating union. Unions can respond by organising gig, platform and informal workers (as the Social Security Code's gig-worker provisions invite), merging rival plant unions to meet recognition thresholds, reducing dependence on party affiliation, and bargaining on skilling and productivity alongside wages.

(c) Union participation versus employee participation

Union participation is representative, institutionalized, and historically adversarial. It functions through collective bargaining over distributive issues such as wages, working hours, and retrenchment terms. In contrast, employee participation (or Workers' Participation in Management) is direct, integrative, and consensus-oriented. It engages workers individually or through shop-floor committees (e.g., Quality Circles, Kaizen teams) to address operational efficiency, safety, and productivity.

Comparative Analysis of Pros and Cons: Union participation protects labor rights, mitigates power asymmetries, and ensures binding collective agreements, but it can induce procedural rigidities, inter-union friction, and industrial conflict. Employee participation boosts employee engagement, enhances innovation, and expedites problem-solving; however, management may use it as a pseudo-participative tool to bypass unions without ceding actual decision-making authority.

A Coexistence Framework: The two mechanisms are not mutually exclusive but complementary within a dual-channel industrial democracy framework. As envisaged under Article 43A of the Constitution, structured bodies like Works Committees and Joint Management Councils (JMCs) can handle integrative issues like workplace safety, ergonomic design, and productivity, while recognized trade unions focus on distributive bargaining. Harmonious coexistence requires management to respect collective bargaining rights without co-opting participative forums, while unions embrace productivity-linked, non-adversarial dialogue.

How this answer will be evaluated

What earns full marks: Comprehensive, well-structured, with specific examples and references.

Evaluation rubric

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

  1. (a) Implementable measures to improve work culture in the country. 10 marks

    suggest— the problem in one line → implementable measures → who acts → conclusion

    Must cover

    • Organisational measures (transparent appraisal, incentives, recognition, capability development)
    • Technological measures (Industry 4.0, Skill India, hybrid work, digital fatigue safeguards)
    • Socio-cultural measures (ethics, psychological safety, POSH Act 2013, work-life balance, inclusion)
    • Roles of government, employers and workers identified

    Loses marks

    • Vague or generic suggestions
    • No clear identification of stakeholders
    • Suggestions not linked to identified problems

    Earns more

    • Mention specific schemes or policies
    • Reference relevant government initiatives
    • Include examples of successful implementation
    • Discuss cultural or social factors

    Extra mark

    • Cite a specific committee report
    • Reference a specific government policy
  2. (b) Definition of trade union and elaboration of present-time challenges. 20 marks

    challenges— 3-4 challenges → solutions mapped to them → conclusion

    Must cover

    • Definition: s.2(zl) IR Code 2020 (replacing s.2(h) Trade Unions Act 1926 from 21.11.2025)
    • Challenges: informalisation/gig economy (90%+ informal); declining density; multiplicity/rivalry; political interference; IR Code 2020
    • Responses mapped to challenges (organising gig workers, merging rival unions, depoliticisation, productivity bargaining)

    Loses marks

    • No clear definition
    • Challenges not elaborated
    • Solutions not mapped to challenges

    Earns more

    • Mention specific legal frameworks
    • Reference recent case studies
    • Discuss technological impacts
    • Include global perspectives

    Extra mark

    • Cite a specific legal case
    • Reference a specific international organization
  3. (c) Comparison of union participation and employee participation with pros and cons. 20 marks

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

    Must cover

    • Clear distinction: union participation (representative, institutionalised, adversarial) vs employee participation (direct, integrative, consensus)
    • Pros and cons of both
    • Coexistence: dual-channel framework, Article 43A, Works Committees/JMCs for integrative issues + recognised unions for distributive bargaining
    • Conditions for harmonious coexistence and way forward

    Loses marks

    • No clear comparison structure
    • Pros and cons not discussed
    • No suggestion for coexistence

    Earns more

    • Include specific examples
    • Reference relevant theories
    • Discuss practical implications
    • Provide a balanced conclusion

    Extra mark

    • Cite a specific study or report
    • Reference a specific company example
What "Discuss" is asking you to do

Lay the issue out from more than one side — how it arose, what is claimed for it, what is held against it, and where it now stands. UPSC attaches discuss to broad topics with several live dimensions, so coverage of the dimensions earns more than the strength of your opinion.

Structure that answers it

Set the issue up → the case as it is made → the case against → the dimension both sides leave out → where the balance now lies

Where marks are lost

Listing facts with no thread between them, or arguing one side throughout and calling it a discussion.

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