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Basic Concept of IR

Definition (by: Filippos): The term industrial


relation refers to all types of relations that exist in
an industry , the employer and employees.
1-Step: in this stage employee has to sign an
agreement.
2-Step: this stage express an organizational
structure means to find your own authority there.

Definition (by: Richardson):


Industrial relation include individual relation and
joint consultations between employers and
people at work the place of work, collective
relations between employer and their
organizations and the trade unions and the part
played by the state in regulating those relations.
Description: Industrial relation means each
employee has relation with their management.
Joint consultant means negotiation of whole
union.

Objectives of IR

1. Development & Promotion of Harmonics


labor management relation:
building an objective which profitable and useful
for both union and management.
2. Maintenance of Industrial Peace and
Avoidance of Industrial Conflicts: this objective
express that management and union have to
work together smoothly, both parties have none
problem, they try to avoid the occurrence of the
conflict.
3. Establish Industrial Democracy Based on
Labor Partnership: this objective express that

4. To Raise the Level of Productivity:


in this objective the productivity level is
increased by efficient and effective system
which should be very much supported to the
company.
5. To Boost the Discipline and Moral of
Workers:
this objective of industrial relation is depending
upon the moral, that moral is developed when
management will listen the worker/labor and
also listen the management.
6. To Increase Industrial Prosperity:
this objective is made to industrial development
with the cooperation of union and management.
7. To Improve Works a Lot with a View to Solve

Factors of IR

1. The Employer:
employer invest the capital for earning profits,
employer is key factor for maintaining the
organization. Employer vary, it can be private
employer, and government employer, and the
nature of private and government employer
also varies. In the private industries have lots of
conflicts as compare to the government
industries. Private industries need work, no
disputes, no grievances, no shouting.
Government industries have less care of profit.
2. Workman or union:
union(labors) are allowed to expression, most
of the times employer gives benefits to

Conditions of Good Industrial Relation

1. Past Records of Industrial Relations:


conditions of good industrial relation depend
upon if the past records between management
and union is good help and impact to improve
the future good relation, if the past records both
parties are not better, it also will affect the
performance of the organization.
2. Satisfaction of Economic Needs of Workers:
basic needs of the labor should be fulfilled,
such as food, shelter, clothes, and health,
because these are very essential needs of
labor, if these needs will be fulfilled, labor will be
satisfied, and they will work more, that will help

3. Off-The-Job Conditions of Workers:


this condition helps to build good relation
through what is the actual problem that is
making the sick of labor? Such as having a
problem in family of labor like any disease. So
management what do they ask from the labors
about their issues personally. This thing
facilitates building a good industrial relation.
4. Negotiation Skills and Attitudes of Workers
and Management:
in this union what do they select the
representatives on the basis of confidence,
seniority, skills, education, experience who can
negotiate with management, management also

Causes of Poor Industrial Relations

1. Nature of Work:
sometimes employees become dissatisfy, when
work burden is increased and wages are not
paid accordingly. And in the schedule there
should be one or two leaves for labor without
deducting their salary due to the leaves. This
thing becomes the cause of poor industrial
relation.
2. Political Nature of Labor Union:
in the organization political interference also
cause a poor industrial relation. In the
organization there are many group concerned
to various political parties (PPP, PMLN, PTI), so

3. Level Wages:
this is also causes the poor industrial relation
when the inflation is increasing day by day and
their wages are not increasing, so the labor
views for the management will be bad, that
management is not increasing our salary.
4. Occupational Instability:
it is also a main cause of poor industrial relation
when the labor/employee are transferred from
one place to another place, and from one
designation to another designation, so it
creates difficulty for the labors/employees.

5. Unhealthy Behavioral Climate:


this cause also build poor industrial relation
when the behavior of the management is not
fair with workers/union. So workers want a
healthy atmosphere by management in which
they can respect the management rather than
hating.
6. Unfair Practices:
this main cause of poor industrial relation when
management threatens the union that if you will
strike and protest you will be kidnapped or your
family members will not safe anymore, means
management try to stop them from strike, or
protest.

Effects of Poor Industrial Relations

1. Multiplier Effect:
due the this the industry and economy is
effected; in industry gap comes in the
consumer and its products in the market.
2. Resistance to Change:
due the poor industrial relation, change does
not incur in the organization in the production
process, working process, technological and
non-technological.
3. Declines in Normal Working:
due the poor industrial relation, the rest
necessity comes in the body by the job, it

4. Frustration and Social:


sometimes due the noise, pressure and other
reasons mind does not accept the work and
want to take rest. Relations with management
are better that will facilitate the labor to work
well, if it is not that will frustrate the employees,
bosss strictness make them frustrate. If the
management is not sound, the loss will be face
by the organization therefore, the social
relations also affect the organizational
performance.

Basic Concept of Conflict

a. Parties involved:
it is necessary that in the conflict there should
be two parties, high and low level, or opposite
parties, or management and union.
b. Perceived threat:
in this type of threat labor can go at any level,
labor can threaten the management through
various ways.
c. Needs, Interests, and Concerns:
these three things become the cause of the
conflict, which build conflict much strong.

Components of Conflict
a. Conflict Must Involve at Least Two Parties:
this component is very important for occurring
the conflict of two parties. One party should be
union and other management.
b. The Field of Conflict:
this is also important component of conflict in
which having the possible state of social
system, and what is agenda (outlines for
discussion), reason and purpose of conflict and
its meeting.
c. The Dynamics of Situation:
there should be adjustment of two parties.
d. The Building Model in Management Control:
after negotiation and discussing the agenda,

Two Views of Conflict

The Bad
The bad view of conflict express that;
on the basis of organizational structure that
where is the problem and find it out. Two types
of organizational structure i-structured and iiunstructured. Due to these there are much
chances of occurring conflict. Centralized (one
authority) structure often creates conflict. Most
the employees have not chance to share their
views in decision making, this thing become the
cause of conflict.

The Good
Good view of conflict is lies to functional
conflict. -productivity (increase in output). If
there is problem in the organization, they
negotiate with other department on the issue
and solve the issue.
The Ugly
It is a situation which is not concluded.
Something is going impossible you make it
possible. For example, the misconception of
authority; one side manager stands alone other
side there is number of employees(labors)
against the manager. Manager suppressed the
situation

It is divided into strategies names are Ugly Strategies, it is


further divided into four strategies that are expressed below.

1-Non-Action Strategy:
it is the worlds dangerous strategy. It is the
best strategy to solve the conflict. For example,
Karachi Electricity Supply Company (KESC); on
the violence and demonstrations of the labors,
management did not take anyaction, they let
employees whatever they do. After that,
employees harmed the infrastructure of the
company and vehicles, finally management
present the report in the court of the destruction
of vehicles etcetera; all those employees who

2-Administrative Orbiting Strategy:


in this strategy management realize the
problem but they do not want to solve it.
Management just passing the statement that it
would be solved. For example, on the
increment of inflation, employees demand for
the increment in their salary so finance
manager states that we will increase your
salary.
3-Secrecy Strategy:
undisclosed meeting is convened at outside the
organization in which the leader or the
representative is called and negotiated and
solved the problem/demands etcetera.

Sources of Organizational Conflict

1. Shared Resources:
due to the shared resources conflict occurs
and division is done equally.
2. Differences in Goals:
when there is difference among the goal of one
department to another department, it also
causes the conflict, because both goals are not
matching with one another.
3. Interdependence of Work Activities:
individual department cannot achieve the goal
of department until workers do not take part in
working activities.

4. Differences in Value or Perceptions:


difference in the values and perception of
departments cause the conflict when they come
to discuss in the meeting their ideas do not
match.
5. Individual Styles and Organizational
Ambiguities:
everyone has its own style, workers way of
working is varying with organizational
ambiguities, if it does not match with working
environment of workers and it creates
ambiguities that occurs conflict.

How to Response the Conflict?

1. Emotional Responses
In this type of response, the management
shows his/her aggressiveness, anxiety to
union(labors) for building fear, because
management has to response otherwise
company will face loss. Management shows
rigid and rude behavior to labors, because
change in attitude brings great lead of loss.

2. Cognitive Responses
Workers are always worried about the
organization;
they think about the organization on issue such
as conflict that what will be the outcome of it.
Workers talk with management and its different
manager, the management express different
views about the conflict. Employees(workers)
come to know that its effect will be
negative/positive on the organization, one thing
is connected to your opinion.
3. Physical Responses
Management act to show that they are in very
critical condition. They begin to show some
physical drawback such as higher level of

Process of Conflict Pondys Process

Latent conflict:
in this conflict process sources of the conflict
are present. Management promote his favorite
employee.
Perceived conflict:
in this employee perceive the conflict; and
recognize that conflict is actually existing.
Felt Conflict:
in this process employee completely know
about the conflict and starts fighting with
management for their rights.
Manifest Conflict:
over and over attitude and aggressive, rude

Methods of Managing the Conflict (3 ways


described by Stoner)

1-Conflict stimulation:
in first step/way where the situation of conflict is
very low. To resolve the problem is necessary of
having the conflict.
1.1-Bringing in Outsides:
in this outside party means third party comes to
solve the problem, they negotiate with
management and union; they listen both partys
agenda/demands and finally shake hands of
both parties with each other. Third party discuss
the problem individually with one party and
second party and also states them the reason
of coming of them in the organization that to

1.2-Going Against the Book:


in this what happens that some people are
excluded and new employees who come to
deal with them(union), management change the
way, and direct communicate with union on the
demands, because middle man has the role of
conflict.
1.3-Reconstructing the Organization:
management change the structure
(centralized/decentralized) of the organization,
because of management thinks there is fault in
the structure so in different designation of
management employs new senior and
experienced employees for knowing the actual

1.5-Selecting Appropriate Manager:


one who can understand the problem of
workers, manager should work like a leader,
and having leadership qualities. Manager
should work easily and honestly for the
organization. In the industry if appropriate
manager is hired/appointed, if he/she does not
possess the managing quality, industry will
have to face the losses. Being a manager
should be patience, confident,
leading qualities are not in you, will be fired
from the designation, other will sit on your
designation who has all these qualities should

2-Conflict Reduction & Resolution Method:


in this method management try to divert the
attention of the labors(employees) from current
issues to another issue, and conflict never go
little down, it is never reduced. There are
chances of solution, when management shows
his dominance on workers it is used that
workers ought not cry on anything, and fear
dominancy is used to reduce the raised voice of
workers.
3-Dominance and Suppression:
in this through dominancy demands/voice of
workers is suppressed.

3.1-Forcing:
management their power imposes on workers.
For example, a ship which have to come on
port/harbor at 2pm but manager himself try to
late the ship and it comes after 4 hours late on
the port, but it is time to leave of labor, but
manager order them till the full filling of ship you
cannot leave the port, now labors are bound
and they cannot go until the ship is filled
completely.
3.2-Smoothing:
it is the tactical way of resolution in which
manager takes ones side, like manager says
that he is with union, and he stands against the
management for union. In this case manager

3.4-Majority Rule:
in this the rule of majority is concentrated, that
what majority is saying management has to
accept them, cannot avoid it. Management has
to make decision on one side. It is effective way
of solving the conflict.
3.5-Compromise:
this is the rule of adjustment; in which few steps
union comes back and few steps management
goes back, means both mutually agreed; both
think that what is more important and what is
less important. Union do not know that what is
next, that management would accept our

3.6-Integrative Problem Solving:


it is joint problem solving, all parties sit
together and think about the problem solving
techniques, and solve the problem. It is further
divide into three categories;
i-Consensus:
in this all are agreed on one solution; solution
may be advised by anyone.
Ii-Confrontation:
it is direct criticism of one party to another
party. In this criticism third partys work is to
judge both parties and says both parties openly
share your problem here whatever they are.
Third party by using their leadership skills and

Industrial Disputes

Forms of Disputes
Usually, Conflict and disputes interchangeably
used in the context. The dictionary definition of
Disputes is: disagreement followed by
opposition against something.
1. Strikes: a concerted stopping of work or
withdrawal of workers' services, as to compel
an employer to accede to workers' demands or
in protest against terms or conditions imposed
by an employer.
2. Lockout: the temporary closing of a business
or the refusal by an employer to allow

3. Layoff: the act of dismissing employees by


employer, especially temporarily. Due the
shortage of electricity/raw material or any other
resources shortage in the organization.
4. Retrenchment: termination of the job due the
strong reason. Suppose a labor is ill, the
organization discontinue the job of the labors. It
is possible when a labor is near at retirement so
employer offer him early retirement with
handsome amount of retirement pension of
Rs.30 lacs, but most of the labors deny from
this offer and want to work till they retire at 60s

Forms of Strike

What is strike? Here is its simple definition: a


group work stoppage to compel an employer to
accede to workers' demands or to protest an
employer's conditions.
1. Go-slow strike: a form of strike by workers in
which they deliberately slow-down the phase of
work/production in order to cause problem or till
their demands are approved from their
employers.
2. Stay-in-strike/Sit-down strikes/Pen-down
strike/Tool down strike: a labor action in which

3. Lightning strike: it is also a labor action in


which labors/employees burn the vehicles,
office and other infrastructure for approving
their demands from employer. It is also
unofficial form of strike.
4. Work-to-rule strike: it is labors action in
which employees/labors do no more than the
minimum required by the rules of a workplace.
5. Hunger strike: a group of labors/employees
protest by sitting without eating anything for 2,3
days for approving their demands from
employer/management or against the condition

Methods for the Prevention and


Settlement of Industrial Disputes

1-Collective Bargaining: it is a process of


mutual negotiation between management and
union on the issues of labors. Both
management and union compromise with each
other. Sometimes the demands of labors,
management cannot afford, in this case
collective bargaining facilitate the management
to reduce few demands from union side, other
are accepted. This is the most useful method in
business organization.
2-Code of discipline: it the code in which

2.1-Management and Union Agree

a. No unilateral Action: one side action;


organization becomes destabilized, union
addresses that our demands must be
approved, and management express that we
have not any relation with union and its
demands. Both agreed on it.
b. Existing Machinery with utmost Expectation:
for solving the problem a panel is seated
consist of two members of union and two
members of management. Whenever
conflict/problem is increased a committee is

c. No Strike without Notice: union agreed that


they cannot do any strike without notice. Union
agreed on it.
d. Democratic Process for Negotiation &
Condition: in this process everyone takes
participation, even a peon has authorized to
contribute for solving the problem/conflict
through negotiation and conciliation. Both
agreed on it.
e. No Coercion, Intimidation, Go-slow &
Victimization: management/union not allow to
threaten the management/union. Go-slow: to

2.2-Management Agree

a. No increase in Workload: sometimes


management misuse the authority like due the
conflict, management increase the work burden
until problem is solved. Management is
prohibited, and agreed on this.
b. To Take Prompt Action with Implementation:
management agreed on to rapid taking action
of grievances of labors and implementation also
required to settle the problem.
c. Conspicuous Places for Negotiation:
management agreed on for meeting of union
and management will at common place, not

2.3-Union Agree

a. Not to Increase the Physical Rule: physical


attacks are not allowed on the property, assets
and people (executives, directors etc) of an
organization. Union agreed on it.
b. Not to Permitted Rowdyism: it is a situation
of disorder or noisy, so union is not allowed to
strike with noise, because noisy strike is illegal.
Union agreed on the code.
c. Not to bound the Employees for Strike: union
cannot force the employees/workers to
participate in the strike. Union agreed on the
code.

Collective Bargaining

According to Harbinson: collective bargaining is


a process of accommodation (making possible)
between two institutions which have both
common (not favor in management) and
conflicting interests (not favor of a union).

Objectives of Collective Bargaining


(CB)

1-To agree upon a contract acceptable union


representatives, union members and the
management: the objective of the objective is to
make both parties agree and gather at one
platform and developing the consensus,
collecting different ideas from mutual
understanding.
2-If 1/3 Majority is Available: this objective
express that if the 1/3 majority of union or
management is available meeting can be
convened. For example, unions
representatives are not present but other

Types of Collective Bargaining

1-Procedural: this collective bargaining rules


describe the two things, that how to govern on
the behavior of the employees and many
conflict in the organization are controlled by the
rules. They just require to show their behavior
as decided in procedural rule. Management has
to respect everyone, and cannot say that
subordinates are servant because of their low
scale. Union behavior ought not be threatening
the organizational structure (higher authorities),
it is somehow right but in a manner and with
legal way not illegally.

Three Kind of Relationship


Regulated by Substantive

2.1-Economic or Market Relationship: in this


kind of relationship management offer the
complete package for union, that those who are
senior will be awarded with bonus and leader
will be rewarded more bonus or cash amount
as compare to workers.
2.2-Governmental Relationship: sometimes
dispute occurs for solving, in this case external
party means government agents come to solve
the dispute. By this way relationship between
union and government become stronger.
2.3-Workplace Relationship: making the

3-On The Basis of Exercise There


Are Two Types

1-Distributive Bargaining: in this sort of relation


one party gets merits and other party face
losses.
2-Integrative Bargaining: this is beneficial for
both parties, have problem solving approach.
Both mutually agreed that no loss no gain.
Concept of productive bargaining is developed
that no stakeholder will in loss.

Participants of Collective Bargaining

Employer
Small Scale Business/Firm: size of firm is
minimum 20 and maximum 50
workers/employees.
Medium Scale Business/Firm: size of firm
minimum 50 and maximum 100
workers/employees. Representatives like
personal or HR manager deals along with legal
assistance. It is registered kind of business.
Legal matters are solved by legal
advisor/assistance and whenever HR Manager
negotiate with the union and manager identify

Employee
Departmental/local basis: (E.g. SUTA, 600
teachers)
Country wide: (E.g. FAPUASA, 25,000
teachers)
If the problem is not solved at low/local level, it
is sent to the upper level.
Example: Sindh University Teacher Association
(SUTA), and Federal of All Pakistan Universities
Academic Staff Association. Few year ago an
issue raised when Government of Sindh took
notice that afterwards government will appoint

listened by this, FAPAUSA took immediate


action and passed the statement If
Government of Sindh will not take notice back,
we would boycott all Sindhs Universities
classes. As a result, Government of Sindh took
notice back and next morning at dawn; in the
newspapers head-lines were that Government
of Sindh has taken notice back. So this was the
example of both country wide and
local/departmental wise representatives; that if
your voice is not listened at low level you can
raise it with help of upper level if you are

Process of Collective Bargaining

1. Organizing and Certification: there are some


representatives in the organization, who talk
with workers/employees to make a group, if it is
certified union no one can challenge it; they can
be senior members who look for that
workers/employees are willing to join the union.
What does management do here?
Management is not in favor of making a union,
they want to stop making union and try to
dominated over.
2. Preparation for Negotiation: there two types
of collecting the data, information, fact and

3. Negotiation: once representatives of union


will formulate the facts and figures; they will
negotiate properly. Strategy is logic to achieve
the goal. All representatives should be well
prepared. Negotiation begins when
representatives present the list of demand; it
should be strictly followed because
management will argue with union and union
have to be careful whatever union want to
speak and steps union take.
4. Contract Administrative: on whatever union
addressed should be agreed upon, this is the

Essential Conditions of Collective


Bargaining

1. Careful Thought and Selective of


Negotiation: negotiation team/group should be
selected from different departments.
Organization is diversified the department. This
type of work is called professional
development. Marketing personnel has
expertise in this particular field like this all
departments expert should be selected in
negotiation. The quota of selection should like
20% from marketing department, 10% from HR
department etcetera. Very senior employees
are able to solve the problem with their

2. Management Should Recognize Union: how


the management recognize the union?
Management understands that they respect the
union, considered as unity of an organization.
Strong union and progressive management can
promote the environment of mutual confidence.
Talent versus talent, skilled and effective
participants always generate mutual
confidence. Both parties already sign the
contract/agreement to discuss, not to make
conflict.
3. Bargaining Team Members Should Have

4. Homework On Agenda of Meeting: before


coming in the meeting representors should get
prepared, their agenda of meeting should be
clearly written according to labor law, court of
conduct, legally and have command/grip on.
5. Both Parties Should Grievances, Safety, And
Hygiene Problem: both partys grievances
should be addressed and listened carefully.
Basic hygiene problems of employees are
valued and managed.
6. Internal Union Democracy: it describes that
union has not right to threaten, pressurize and

Thank you for your attention.