Introduction

Industrial relations in India in the 1950s and early 1960s was adversarial and
confrontational. At the company level, working conditions were poor. There were
disruptions in business operations and low productivity due to frequent work stoppages
and a lack of discipline and teamwork. This resulted in a poor investment climate,
economic stagnation, high unemployment and social unrest. Independence thrust upon
India in 1965 marked a turning point. Faced with a dire economic situation aggravated by
the withdrawal of British Forces, India embarked on an industrialization programme to
attract foreign investment in order to create jobs for the people. The crucial challenge was
to move away from an adversarial labour-management relations climate to a co-operative
one; and to develop a disciplined, motivated and productive workforce, as part of the
national effort to create a favourable climate for investment.
To achieve this objective, the existing legal framework was overhauled by introducing a
rational procedure for collective bargaining, conciliation and arbitration of industrial
disputes, and also by establishing basic employment terms for employees. More
importantly, the three social partners, i.e. the Government, trade unions and employers,
realized that for the industrialization programme to succeed, confrontation had to be
replaced by co-operation and collaboration. They therefore decided to adopt a tripartite
partnership approach, with the Government as a facilitator, to bring about labourmanagement co-operation.
A new spirit of tripartism was thus born. This provided a consultative platform for
industrial relations issues to be addressed and resolved amicably and laid the foundation
for the development of a disciplined and productive workforce. All this contributed to
business efficiency and growth, which brought about sustained wage increases, and
improvements in working conditions and employment opportunities. Over the years, the
tripartite partnership approach has enabled us to successfully replace the adversarial
relationship with a constructive and dynamic one. Management and unions/employees
have been able to work together to resolve differences rationally and amicably, to the
benefit of both employers and employees.
India has enjoyed several decades of sustained industrial harmony, and this has become a
key competitive advantage in attracting investment. In addition, the strong tripartite
partnership has enabled us to respond effectively as a team to deal with serious national

challenges, such as economic downturns, and the crisis of 2003. The willingness and
ability to work together in times of crisis has further strengthened the spirit of tripartism
and made us more resilient as a nation. As Singapore advances into an era of increasing
competition and intense globalization, we will have to grapple with new challenges to
ensure the viability of our companies, the relevance of our workforce and the dynamism
of our economy. To compete effectively and develop a knowledge economy, we will need
to continually improve our business environment and move up the value-chain with a
well-trained and innovative workforce.

MEANING OF INDUSTRIAL REALATION :

The concept of industrial relations means the relationship between employees
and management in the day-to-day working of an industry. But the concept has a wide
meaning. When taken in the wider sense, industrial relations is a set of functional
independence involving historical, economic, social, psychological, demographic,
technological, occupational, political and legal variables.
According to Dale Yoder, Industrial Relations are a whole field of relationship that
exists because of the necessary collaboration of men and women in the employment
process of an industry.
According to the Industrial Labour Organisation (ILO), Industrial Relations deal
With either the relationship between the state and employers and workers
organizations or the relation between the occupational organizations themselves.
The concept of industrial relations has been extended to denote the relations of the state
with employers, workers, and their organisations. The subject therefore includes
industrial relations and joint consultations between employers and work people at their
work place, collective relations between employers and their organizations and trade
union and part played by the State in regulating these relations.

Small Scale Industries

A small scale industry (SSI) is an industrial undertaking in which the investment in fixed
assets in plant & machinery,whether held on ownership term or on lease or hire purchase,
does not exceed Rs. 1Crore. However, this investment limit is varied by the Government
from time to time.
Entrepreneurs in small scale sector are normally not required to obtain a licence either
from the Central Government or the State Government for setting up units in any part of
the country. Registration of a small scale unit is also not compulsory. But,its registration
with the State Directorate or Commissioner of Industries or DIC's makes the unit eligible
for availing different types of Government assistance like financial assistance from the
Department of Industries, medium and long term loans from State Financial Corporations
and other commercial banks, machinery on hire-purchase basis from the National Small
Industries Corporation,etc. Registration is also an essential requirement for getting
benefits of special schemes for promotion of SSI viz. Credit guarantee Scheme, Capital
subsidy, Reduced custom duty on selected items, ISO-9000 Certification reimbursement
& several other benefits provided by the State Government.
The Ministry of Micro, Small and Medium Enterprises acts as the nodal agency for
growth and development of SSIs in the country. The ministry formulates and implements
policies and programmes in order to promote small scale industries and enhance their
competitiveness. It is assisted by various public sector enterprises like:

Small Industry Development Organisation (SIDO) is the apex body for assisting
the Government in formulating and overseeing the implementation of its policies
and programmes/projects/schemes.

National Small Industries Corporation Ltd (NSIC) was established by the

Government with a view to promoting, aiding and fostering the growth of SSI in
the country, with focus on commercial aspects of their operation.

The Ministry has established three National Entrepreneurship Development

Institutes which are engaged in development of training modules, undertaking

research and training and providing consultancy services for entrepreneurship

development in the SSI sector. These are:

National Institute of Small Industry Extension Training (NISIET)

National Institute of Entrepreneurship and Small Business Development

(NIESBUD)

Indian Institute of Entrepreneurship (IIE)

The National Commission for Enterprises in the Unorganised Sector (NCEUS)has

been constituted with the mandate to examine the problems of enterprises in the
unorganised sector and suggest measures to overcome them.

Small Industries Development Bank of India (SIDBI) acts as apex institution for
financing SSIs through various credit schemes.

Small Scale Industry in Baramati

Sr

Name

Production

01

M/s.Modi Hoower

Home appliences(Sick)

02

M/s Maharashtra Sahakar

Ghani Oil

Edible Oil(Sick)

03

M /s Baramati Leather

Leather goods

04

M/s Makune Solmex

Plastic Pencils(Sick)

05

M/s Baramati Wire Pvt.Ltd

Copper wire

06

M/s Kalyani Thermal

Engineering

07

M/s Prabodhan Valves

Valves

08

M/sBalaji Oil Industries

Egible Oil

09

M/s Clodimen Castings

Cating

10 M/s
11
12

Safalya T_ransmission

M/s Tranmch System

M/s

Sriram Ice Factory

Engineering
Trolly
Ice Factory

13

M/s Sachine Engineering

Fabrication

14

M/s Quality Clousers

Engineering

15

M/s Parvati Engineering

Engineering.Fabrication

16

M/s Vijay Welding Works

Engineering

17

M/s Shakti Tyre Retreat

Tyre Remolding

18

M/s H.k. Minerals

Sonia(niroo)

19

M/s Yu-San Engineering

Engineering

20

M/s Vaishali Garments

Garments

21

M/s Vikram Archi Welding

Welding Road

22

M/s Pride Packers

Corrgiguted Boxes

23

M/s Siddhivinayak Tools

Engineering

24

M/s

25
26

Jay-Vijay Industries

M/s
M/s

Deisel Generator

Jay Industries

Fabrication

Supra Engineering

Engineering

27

M/sSamruti Packsing

Packsing Bags

28

M/s Shardul Packsing

Corrgiguted Boxes

29

M/s Mehta Engineering

Fabrication

30

M/s Raj Bottle Cap

Filter Proof cap

31

M/s Prasad Printers

Printing Press(Sick)

32

M/s Hariharan Fabricators

Fabrication

33

M/s Parveen Industries

Fabrication

34

M/s Om Shree Poly Letro

Adeshives Tapes

35

M/s Paras interpries

Pastic Molding Parts

36

M/s MSRTC Works Shop

Works Shop

37

M/s Baramati Solvent Pl

Refined oil(Sick)

38

M/s Also Paint

Paint(sick)

39

M/s Automatic Leall Spring

Spring(sick)

40

M/s Kalyani Steel limited

Seemless Tube

41

M/s Mintage Electro

Equipment

Seemless Tube

42

M/s M.S.W housing

Godawon(storage)

43

M/s Salpe Oil Mill

Edible Oil

44

M/s Salpe Oil Production

Edible Oil

45

M/s Harshad Packwel

Corrgiguted Box

46

M/s Krishna Oil

Edible Oil(Sick)

47

M/s Standard Packsing

Corrgiguted Box

48

M/s Bulk Contrainers

Contrainers

49

M/s Maharashtra Plastic

Plastic Article

50

M/s Somany Plasto

Plastic Article

51

M/s Sai Laxmi Wooden

Pvt.Ltd

Wooden Cloth

52

M/s Digvijay Gas Products

Natural Gas

53

M/s Shap Cut Industries

Engineering(sick)

54

M/s A.R Mehta Industries

Wire Coated

55

M/s Venture Steel

Dairy Equiment

56

M/s Bass Engineering

Fabrication

57

M/s Baramati Mehta

Engineering(Sick)

58

M/s Sun Plast Industries

Plastic cans

59

M/s Phonix Adhessive Teps

Adhessive

60

M/sShree Laximi Enter

Papercon

61

M/sDyna Handling System

Engineering

62

M/sGanesh Mosaaic Tile

Cemnt Tile

63

M/sPadma Engineering

M.s Fabrication

64

M/sAppu Indutrues

Stationary Printing

65

M/sVal Interprises

Fabrication

66

M/sShikalkar Agro

Agrical Aquipt

67

M/s Shikalkar Agro

Agrical Aquipt

68

M/s S,M Deepa

Plastic Bag

69

M/s Laximi Welding Works

Fabrication

70

M/sSandeepa Power Lines

Tranformore repiar

71

M/sPoly Pack Industries

Tranformore repiar

72

M/sShisatax

Corrigiguted Box

73

M/sMota Garments

Readimed Darments

74

M/sTate Electricals

Tranformore repiar

75

M/sCrown Auto Industries

Sring Forautomobile

76

M/sSita Saraswati Floor

Floor Mill

77

M/sGugle &pote Associates

Cattle Feeds

78

M/sSuyash Auto

Auto Spaire

79

M/sTrimurti Eng Pvt Ltd

Eng

80

M/sLawa Forgina & Eng Pvt

Ltd

Steel Foating

81

M/sBaramati TIles Pvt Ltd

Mojec Tiles

82

M/sRoyal Eng

Press Parts

83

M/sG.G Magnets

Ferrite Mannet

84

M/s baramati Oxygen Pvt

Ltd

Oxygen Gas

85

M/sJ.JEng

Fabrication

86 M/sTulja Bhawani Cold Store Storage of Dairy Product

87

M/s Sartha Enterpruses

Fabrication

88

M/sShree Ganesh Line

Mfg.Co

Dricolor

89

M/sbaramati Textile

Cotten yarn

90

M/sMuckut Pipe Ltd

Non Galvanise Pipe

91

M/sOrton Synthetics

Fabrication

92

M/s Spentex Industries Ltd

Cloth Yarn

93

M/sSoma Textile

Cloth Yarn

94

M/sDeccan Mech

Spirale WeldingPipe

95

M/sPiaggio Greaves
Vehicales

Three VahicalAuto

96

M/sShree Datta Krupa

Fabrication

97

M/sSamrat Plastic Product

Plasic Bags

98

M/sAmeya Industries

Job Work

99

M/sOnkar Eng

Fabrication

101

M/sNavnath Eng Works

Fabrication

102

M/sSonali Industres

Job Work

103

M/sSunita Interptrises

Decorative Art

104

M/sPrathmesh Industries

EngFabrication

105 M/sAnupriya Plastic Peroduct

Injection Moulding

106

M/sVimsha Indus

Staple Pins

107

M/sLaxmi Inds

Eng Units

108

M/sG.P Paper board

Paperv Boad

109

M/sbaramati Krishi Udyog

Gelly Food Produts

110

M/sArunaq Inds

Food Produts

111

M/sPromod Eng

Eng Works

112

M/sClobal Inds

Fabrication

113

M/sNavneet Inds

Biyle Chane Cover

114

M/sShah Inds

Eng

115

M/sNaidu Udyog

Sugar Machinary

116

M/s Yogesh Interprises

Plastic Injection

117

M/sSurya Power Tech

Motor Capacitol

118

M/sKelvin Inds

Eng Fabrication

119

M/sVal Product India Pvt

Poultry Nipple

120

M/sSubodh IndsI

Capasitor

Literature Review
The literature review of the subject is classified and presented under five heads. First one
is Industrial Relations in general. Second part of the literature survey highlights studies
about job satisfaction. Third part of the literature analysis accounts for Industrial Disputes
and dispute settling machinery. Fourth part reveals studies pertaining to trade unionism
and workers participation in management. Last part of the literature review highlights
various studies pertaining to industrial relations

A) Industrial Relations in General

Many researchers in the country have concentrated on the study of industrial
relations at the national level on the basis of aggregate data. We pointed out that
the Indian industrial relations system has all along been adversarial with collective
bargaining approach being its mainstay. He contended that collective bargaining
and participation need different attitudes and hence cannot co-exist. In any new
model of I R the adversarial approach and collective bargaining must give way to
participative structures or development of institutions which check the adversarial
approach. He suggested various changes in the roles of management, union and
Government for redefining Industrial relations.
1) The factors which have facilitated the development of harmonious industrial
relations. They identified informal, open and uninhibited interpersonal relations
between employees and the pressures of production, hierarchical status and dayto-day work problems did not reduce the communication between the individuals.
2) Why employees oppose automation, what are the steps to be taken for its smooth
introduction and how the staff and their unions can be involved in this task. The
utilization and deployment of workforce in the context of automation has also
been analysed. He emphasized the inalienable connection between automation and
industrial relations and suggested that in their own interest both the managements
and the unions must join hands for phased adoption of new technology.

3) An

All-India survey of organizational climate and its influence on labour

-management relations. They isolated two factors that together explain 58% of the
variation in labour-management relations in India. Those are (1) grievance
handling system and (2) scope for advancement.

4) To evaluate the industrial relations in the private and public sectors in India. He
found that industrial relations in both the sectors had progressively deteriorated
during 1962-68 and that public sector registered a better performance on the
criterion of industrial conflict, but when viewed in the context of its performance
in terms of the tripartite forums, the code of discipline, and the prevalent
attitudinal climate it has been no difference 30from the private sector. He
concluded that it cant be said with certainty that there exist any linear
relationship between ownership and industrial relations.

B)

Job Satisfaction

1) A variety of factors might contribute to job satisfaction for most workers,

the connection between such factors and job satisfaction may not be a
direct link. Job satisfaction may be mediated by the perception of the
individual workers. This is because different employees may perceive the
same job differently, and it is those individual perceptions that determine

2)

whether or not an employee is satisfied with the job.

supportive supervision as well as support from co-workers, was
positively correlated with workers job satisfaction. According to them,
support from coworkers and supervisors was especially important to
employees who did not feel positive about the work they performed.

3) Job

satisfaction and performance are not directly linked. Instead,

effective job performance leads to job related rewards, such as pay

increases, promotions or a sense of accomplishment. If the process for
offering these rewards is perceived as fair, receiving these rewards leads
to job satisfaction and also to higher and higher levels of performance.
This creates a situation in which job satisfaction and job performance are
actually independent of one another, but are linked because both are
affected by job- related rewards

C) Industrial disputes

1) One of the grim threats to the efficient conduct of the modern industrial
system seems to be the ravaging industrial disharmony characterized by
embittered relationship between the employers and the workers. The
causes of 35industrial disputes in India were psychological, political and
economic. Hence to secure industrial peace, changes in the attitude of the
workers, employers, trade unions are required along with political and

2)

economic changes.
Strikes are the most visible and spectacular manifestations of industrial
conflicts which in turn, arise out of bad industrial relations. A good
number of studies undertaken to study the causes of industrial disputes
have shown that several economic and non-economic factors have caused
industrial disputes in the country. we concluded that inadequate pay,
rising prices and other economic benefits or pressure might be considered
as the major causes of industrial disputes in India.

D) Trade unionism and workers participation in India

1) Trade Unionism has been a popular field of research in the literature of
industrial relations because the conflicts and co-operation between
workers and management are influenced by the nature of workers
organization. There have been a good number of research studies in
different aspects of trade unionism such as their growth and
development, organization and structure, leadership, politics, union
involvement and participation in union activities etc

2) The Indian unions are very sensitive politically and multi-unionism has
become a fact of life in most of the industries. We also noted the
relationship between union politics and management politics, relationship
between

political

dependence

and

union

weakness,

political

manipulations, transfer of union funds for political activities and viceversa, consequence of outside influence, politicization of workers and
their commitment to unions.

3) Trade unionism and trade union movement in India and Maharashtra

continue to be politically oriented, divided, sub-divided and fragmented,
failing to protect the interest of the labour, the industry and the economy

E) Workers Participation in Management

1) In todays labour relations, workers participation is one of the widely
debated issues. Intensive research has been carried out in the past to

examine the impact of participation on productivity, performance, and

job satisfaction, morale of workers, industrial peace and organizational
effectiveness. Underlying all these studies is the assumption that workers
have a desire to participate in management decision-making and by
satisfying that desire organizational objectives can be effectively
achieved to a varying extent.

2) Research

works have shown that participation of workers in various

decision-making processes increases their job satisfaction and decreases

their work apathy, reduces industrial tension and conflict, and works as a
positive instrument for the promotion of productivity and creativity.

3) Workers participation in management has still many vital aspects which

have not been explored completely. The issues that need to be studied
include the attitude and approach of workers and management towards
participation,

47workers commitment

to

participate,

levels

of

participation desired and the impact of socio-economic factors on

participation.

Research methodology
In todays rapidly changing and profit centric business / industrial scenario, Industrial
Relations (IR) is mainly concerned with Labour Relations, Legal Compliances, dealing
with workmen unions, associations, disciplinary proceedings, contract labours, and
advising, suggesting Management on necessary actions, needed to achieve the required
results on labour, employee, Industrial Relations issues.In Indian context there are
number of labour laws which are applicable to industry. Local Muncipal laws and rules,
State legislation & Central legislation etc, and the Governments mechanism
(bureaucracy) to supervise to control to implement the same is very slow.
If we remember the Day 18 July 2012 : Maruti's Manesar plant was hit by violence as
workers at one of its auto factories attacked supervisors and started a fire that killed a
company official and injured 100 managers. Now a days frequent news / incidents like
Maruti's Manesar indicates that the bad old days of trade unionism are really back?
Who is responsible for this?

One of the most challenging jobs of HR / IR Manager in modern day organization and in
MNCs is effective & efficient Management of work culture.The canvas & scope of IR
has also expanding in to folds of work culture Management.HR/ IR Mangers through
continuous dialogue with Management, line Managers and key employees can create
awareness in any organization to develop a holistic work culture.
Also dealing with Trade Union Leaders has been always an uphill and hazardous job
particularly due to their political affiliation, arrogance, corrupt & black mailing tactics
and nuisance values, the situation has remained the same even today.Government
mandated procedures for labour dispute resolution are currently very slow, with
thousands of cases pending for years. There is an urgent need for reform of archaic Indian
labour laws, else the industrial scenario discourage investments in India.
HR/IR has to deal with unions & union representatives, politicians, bureaucrats and
government officials, Simultaneously HR / IR have to create a positive work culture in
an organization. The fruits of positive work culture will very helpful in long run for an
organization to sustain to grow.
In conclusion we can say that the need of the hour is professional approach is required
from union leaders, and Management has to forward a step in providing basic facilities
and providing good work culture try to avoid i.e lower wages, hostile working
conditions, bad working environment, poor facilities and insulting treatment by the
superiors etc, so that the Industrial Relations remain cordial, industries can work
smoothly and prosper.
Collaboration, not Confrontation : An adversarial and confrontational attitude
reinforces differences and creates distrust. Opportunities to leverage on each others ideas
and experience are lost, and solutions are reached only as last resort compromises.
Conducting industrial relations with such attitude creates instability and industrial strife,
leading to economic and social outcomes unfavourable to all. On the other hand, a
consultative and partnership approach which takes into consideration each others needs
and concerns, promotes mutual understanding and win-win outcomes. At the same time,
constructive interaction fosters a spirit of camaraderie and builds lasting relationships.

 Leadership and Mandate : Leaders should provide direction and guidance based on the
collective interests of the stakeholders, bearing in mind the larger concerns of the
company. Leaders should also lead by example, particularly in times of adversity.
Voluntarily accepting greater responsibility and sacrifices enables leaders to have the
moral authority to lead and cope with crises more effectively. Management and union
representatives should have necessary mandate to negotiate and commit to agreements
reached. They should also have the appropriate authority to resolve disputes and
safeguard employees interest.
Mutual Trust and Understanding, Respect and Integrity : Mutual trust, respect and
understanding are key qualities which promote open and constructive dialogue, and
strengthen bonds. They enable the parties to appreciate each others constraints and
concerns; and work together to meet challenges for mutual benefit. Integrity, honesty and
good faith are the pillars of good inter-personal relationships, which are the building
blocks of successful consultation and co-operation. While differences of view are
inevitable, these moral principles will strengthen trust and bring about amicable
resolution of differences.
Sharing of Information : sharing promotes transparency and eliminates suspicion and
distrust. Information is a catalyst which promotes open and constructive dialogue, and
facilitates decision-making and dispute resolution.
Professionalism : Professionalism requires technical competency and objectivity in

dealing with issues. A professional takes into account the interests of all stakeholders and
evaluates relevant facts before drawing conclusions. A professional is honest and fair. He
is expeditious in resolving conflicts, provides appropriate solutions, and seeks mediation
where necessary. He understands business and economic principles, including the close
link between productivity and wages, as well as good human relations. He also
establishes a fair and effective grievance procedure.
Mutuality of Purpose : The viability and success of a company are not only concerns of
management but also of employees. Both should have a shared vision of corporate
interests and goals in the conduct of industrial relations. The shared vision unifies the
interests of the parties and directs them to place long-term objectives above short-term
gains, wider interests above sectional interests, and cocreates win-win solutions that fulfil
the needs and purpose of management, trade unions and employees.

OBJECTIVES OF INDUSTRIAL RELATIONS

The primary objective of industrial relations in Small Scale Industries is to maintain
congenial relations between employees and employer. The other objectives are:
1. To promote and develop congenial labour management relations.
2. To enhance the economic status of the worker by improving wages, benefits
and by helping in evolving sound budget;
3. To regulate the production by minimizing industrial conflicts through state
control.
4. To socialize industries by making the government as an employer.
5. To provide an opportunity to the workers to have a say in the management and
decision- making;
6. To improves workers strength with a view to solve their problems through
mutual negotiations and consultation with the management.
7. To encourage and develop trade unions in order to improve the workers
strength.
8. To avoid industrial conflict and their consequences.
9. To extend and maintain industrial democracy.

Sample Size

20

Sampling Method

Random Sampling Method

Primary Data Sources

Questionnaire
Interviews
Focus Group

Secondary Data Sources

Internet
Magazines & News Papers

Books

Location for Survey

Baramati

FACTORS OF INDUSTRIAL RELATIONS AFFECTED BY SMALL SACLE

INDUSTIRES
Industrial relations are influenced by various factors, viz., institutional
factors, economic factors and technological factors.
1. Institutional Factors: These factors include government policy, labour
legislations, voluntary courts, collective agreement, employee courts, employers
federations, social institutions like community, caste, joint family, creed, system
of beliefs, attitudes of works, system of power status etc.
2. Economic Factors: These factors include economic organization, like capitalist,
communist mixed etc., the structure of labour force, demand for supply of labour
force etc.
3. Technological Factors: These factors include mechanization, automation,
rationalization, and computerization.
4.

Political Factors: These factors include political system in the country, political
parties and their ideologies, their growth, mode of achievement of their policies,
involvement in trade unions etc.

5. Social and Cultural Factors: These factors include population, religion, customs
and tradition of people, race ethnic groups, cultures of various groups of people
etc.
6. Governmental Factors:

These factors include Governmental policies like

industrial policy, economic policy, and labour policy, export policy etc.

THREE ACTORS OF INDUSTRIAL RELATIONS IN SMALL SACLE

INDUSTIRES
Three major participants or actors of industrial relations, viz., workers and
their organizations, management and government are identified.
1. Workers and their Organisations: The total worker plays an important
role in industrial relations. The total worker includes working age,
educational background, family background, psychological factors, social
background, culture, skills, attitude towards other workers etc. workers
organizations prominently known as trade unions play their role more
prominently in trade unions. The main purpose of trade union is to protect
the workers economic interest through collective bargaining and by
bringing pressure on management through economic and political tactics.
Trade union factors include leadership, finances, activities etc.
2. Employers and their organization:

Employer is a crucial factor in

industrial relations. He employees the worker, pays the wages and various
allowances, regulates the working relations through various rules,
regulations and by enforcing labour laws. He expects the worker to follow
the rules, regulations and laws. He further expects them to contribute their
resources to the maximum. The difference between the demands of worker
and employer results in industrial conflicts. Normally employers have
higher bargaining power than workers. But their bargaining power is
undermined when compared that to trade unions. Employers from their
organizations to equate (or excel) their bargaining power with that of trade
unions. These organisations protect the interest of the employer by
pressuring the trade unions and government.
3. Government: Government plays a balancing role as a custodian of the
nation. Governments exerts its influence on industrial relations through its
labour policy, industrial relations policy, implementing labour laws, the
process of conciliation and adjudication by playing the role of both
employees organisation and employers organisation.

FUNCTIONS OF INDUSTRIAL RELATIONS IN SMALL SCALE INDUSTRIES

Functions of industrial relations include:

1. Communication is to be established between workers and the management in
order to bridge the traditional gulf between the two.
2. To establish a rapport between managers and the managed.
3. To ensure creative contribution of trade unions to avoid industrial conflicts, to
safeguard the interest of the workers on the one hand and the management on the
other hand, to avoid unhealthy, unethical atmosphere in an industry.
4. To lay down such considerations which may promote understanding, creativity
and cooperativeness to raise industrial productivity, to ensure better workers
participation.
5. Good labour-management relations depend on employer and trade unions
capacity to deal with their mutual problems freely, independently and responsibly.
6. The trade unions and the employers and their organisation should be interested in
resolving their problems through collective bargaining and if necessary with the
assistance of proper government agency.
Workers and employers organizations should be desirous of associating with government
agencies taking into considerations with general, social, public and economic measures
affecting employers and workers relations.