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Organized by Department of Management Studies, Pooja Bhagavat Memorial Mahajan Post Graduate Center, Mysore In Association with National Institute Of Personnel Management Mysore Chapter
29th April 2011
Presentation By
Surendranath.A
Past Chairman, NIPM-Mysore Chapter
Industry Type
Tyre Tyre Heavy Engg Iron & Steel Rayon Pulp Automotive Mineral Wool Bulk Drugs Sugar Extrusion
Content of Presentation
Historical Background Concept and Approach in IR Stake Holders of IR Various Factors Influencing IR Essentials of Sound IR Policy IR Strategies Community of IR Legal Framework of IR Proactive IR
Works Committee MOUs & Settlements Collective Bargaining Long Term Settlements
HR Approach to IR
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
Historical Background
Historical Background
Industrial relations has its roots in the industrial revolution which created the modern employment relationship by spawning free labor markets and largescale industrial organizations with thousands of wage workers.
Historical Background
With the massive economic and social changes, labor problems arose. Low wages Long working hours Monotonous and dangerous work, and Abusive supervisory practices Led to high employee turnover, violent strikes, and the threat of social instability.
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Historical Background
Industrial relations was formed with a strong problem-solving orientation that rejected both the classical economists laissez faire solutions to labor problems and the Marxist solution of class revolution. It is this approach that underlies the various labour legislation.
Historical Background-West
In Britain, another progressive industrialist, Montague Burton, endowed chairs in industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.
What Is IR?
Various interests involved in the labour management are accommodated, primarily for the purpose of regulating employment relationships. Outlook of IR is essentially collectivist and pluralist. The relationships which arise at and out of the workplace (ie, relationships between individual workers The relationships between them and their employer
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
What Is IR?
The relationships employers and workers have with the organizations formed to promote and defend their respective interests, and the relations between those organizations, at all levels. Includes the processes through which these relationships are expressed such as, collective bargaining; worker participation in management/involvement in decision-making; and grievance and dispute settlement Involves the management of conflict between employers, workers and trade unions, when it arises.
What Is IR?
Influenced by the government and its agencies through policies, laws, institutions and programmes, and by the broader political, social, economic, technological and cultural characteristics of a place. The policy/procedure, developed through bipartite consultative processes (ie, between employer and worker representatives, and by them, individually, with government) and tripartite consultation and cooperation (involving government).
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
IR Outcomes
A series of rules which apply to work like , Setting down minimum (and other) wages Terms and conditions of employment for workers Occupational safety and health, social security (sometimes), and conditions applying to special categories of workers. Defining the roles and responsibilities of the parties, individually and collectively (eg, through legislation; collective labour agreements; decisions by arbitrators and courts; and enterprise work rules).
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Unitary Perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application. Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown.
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Pluralist Perspective
In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions. Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channelled towards evolution and positive change.
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Radical Perspective
This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this background. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the radical view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it.
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IR and HR
HR is essentially a bipartite process, not involving the Government. The emphasis of IR is to achieve collective outcomes at national and/or sector/industry levels which are then applied to each enterprise. HR is focused directly at the level of the enterprise and seeks to align the interests of managers, individual workers and groups of workers around certain mutually agreed corporate objectives, in order to achieve competitive advantage in the market place.
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
HR challenge to IR
It can operate to undermine the role of trade unions at enterprise level by emphasising the primacy of the relationship between managers and individual workers. It is possible to harmonize IR and HR policies and practices in ways which can strengthen outcomes for both This issue which will be discussed again later in the presentation.
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
Human Relations
The term human relations refers to the whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of modern industry. It is that part of management which is concerned with the management of enterprise -whether machine operator, skilled worker or manager. It deals with either the relationship between the state and employers and workers organisation or the relation between the occupational organisation themselves.
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
Stake Holders of IR
Stake Holders of IR
Promoters Including Investors Management Employees Workers and Their Unions Customers Society Government
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IR Strategy
IR Strategy
Attitudinal and behavioural changes Modern labour polices, legislation and institutions Employers should be seeking "modern" labour policies, legislation and institutions which encourage industrial harmony (by emphasising prevention not resolution of conflict). Compensation systems linked to enterprise performance A skilled and adaptable workforce Flexible forms of work organization and management Culturally-sensitive management strategies Implementing a reform strategy
Diffusion Of IR Practices
Whether such IR/HRM practices are adopted, on a widespread basis, will depend on three considerations: First, the impact of MNC's (through international benchmarking and diffusion of best practice to local suppliers and subcontractors); Second, the extent to which individual domestic enterprises and governments learn "by doing" (and diffuse lessons learned within the local economy) and, Thirdly, whether collective bargaining (particularly, at industry level) can produce good examples of negotiated agreements which address the range of issues of concern in developing more flexible workplaces, and provide "blueprints" which many local enterprises might seek to follow. Presentation By Surendranath.A On 29 April, 2011
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Governments Role In IR
The essential challenge for governments in the region in the face of globalization is to seek to encourage and regulate foreign participation in national economic development in a manner that promotes balanced growth with equity.
Employers Roles In IR
Proactive and preventive, the need for sound workplace relations which emphasise the importance of improved cooperation and consultation and effective negotiation to address workplace issues, thereby avoiding (or, at least, limiting) industrial disputes and providing a basis for achieving sustainable improvements in enterprise performance.
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ENTERPRISE LEVEL
EMPLOYMENT RELATIONS (IR/HR) [WORK ORGANIZATION, SKILL DEVELOPMENT COMPENSATION, CROSS-CULTURAL MANAGEMENT] Presentation By Surendranath.A On 29th April, 2011
surendra.atp@gmail.com
Legal Framework of IR
Conditions Of Service For Change Of Which Notice Is To Be Given- 4th Schedule, ID Act
1. Wages, including the period and mode of payment; 2. Contribution paid, or payable, by the employer to any provident provident fund or pension fund or for the benefit of the workmen under any law for the time being in force; 3. Compensatory and other allowances; 4. Hours of work and rest intervals; 5. Leave with wages and holidays; 6. Starting, alternating or discontinuance of shift working otherwise otherwise than in accordance with standing orders; 7. Classification by grades; 8. Withdrawal of any customary concession or privilege or change in usage; 9. Introduction of new rules of discipline, or alteration of existing existing rules except insofar as they are provided in standing orders; 10. Rationalization, standardization or improvement of plant or technique which is likely to lead to retrenchment of workmen; 11. Any increases or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift not occasioned occasioned by circumstances over which the employer has no control.
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Works Committee
Works Committee
ID Act; Sec 3 (1) In the case of any industrial establishment in which one hundred or more workmen are employed or have been employed on any day in the preceding twelve months the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment so however that the number of representatives of workmen on the Committee shall not be less than the number of representatives of the employer.
Works Committee
The representatives of the workmen shall be chosen in the prescribed manner from among the workmen engaged in the establishment and in consultation with their trade union, if any, registered under the Indian Trade Unions Act, 1926 (16 of 1926).
Works Committee
ID Act; Sec 3 (2) It shall be the duty of the Works Committee to Promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavor to compose any material difference of opinion in respect of such matters.
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Works Committee
Concerned with the problems of day-to-day working Not intended to supplant or supersede the union for the purpose of collective bargaining Not entitled to consider substantial changes in the conditions of service Task is to reduce fiction that might arise between workers and management in the dayto-day working
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Settlements
What is a Settlement?
Section 2 (p) of ID Act: "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;
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(d) where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part.
Collective Bargaining
Essential Features Of Collective Bargaining Support of the labour administration authorities Both parties to bargain in good faith Well Informed managers and workers
in a pluralist society collective bargaining is recognized as a fundamental tool through which stability is maintained, while freedom of association is the sine qua non without which the interest groups in a society would be unable to function effectively. There can therefore be no meaningful collective bargaining without freedom of association accorded to both employers and workers.
Existence of freedom of association - does not necessarily mean that there would automatically be recognition of
unions for bargaining purposes. Especially in systems where there is a multiplicity of trade unions, there is a need for predetermined objective criteria operative within the industrial relations system to decide when and how a union should be recognized for collective bargaining purposes.
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com
HR Approach To IR
Proactive Caring for employees Effective Communication Employee Involvement Programs Trust Development Developing Attitudes Training for Skill Development Enhancing Competencies Programs on Family and Work Life Balance Health & Safety Career Growth Plans Compensation & Benefits
Presentation By Surendranath.A On 29th April, 2011 surendra.atp@gmail.com