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Causes Of Poor Industrial Relations Between

Employer And Employees:-

Poor I.RS
Economic causes

Managerial Causes

Political causes

Other causes

I) Economic factors: a) wages.

b) Dearness Allowance and Bonus. c) High Industrial profits.

d) Working condition and Working hours.

e) Modernization and Automation of plant and

machinery. f) Demand for other facilities.

II) Managerial causes.

a) Denial of recognition to Trade Unions.

b) Defective recruitment policies.

c) Irregular Lay-Off and retrenchment. d) Defiance of agreement and codes. e) Defective Leadership. f) Weak Trade Unions.

III) Political causes.

a) Influence of Politicians.

IV) Other causes.

a) Sympathetic Strike etc

Importance of maintaining sound Industrial relations.

1)Reduces industrial disputes.

2) High morale.
3) Mental revolution. 4) New Programmes. 5) Reduced wastage.

Introduction of Workers Participation in Management.


It implies a situation where workers representatives are ,to some extent, involved in the process of management decision making ,but where the ultimate power is in the hands of management. ..Ian Clegg.

Aims of WPM.
i) An instrument.
ii) A device iii) A means. iv) A humanitarian act.. v) An ideological point of view.

Objectives of Workers Participation in Management.

i) Economic objective. ii) Social objectives. iii) Psychological objectives.

Importance of WPM.
1) Mutual understanding.

2) Increase in production.
3) Eliminating industrial disputes. 4) Increase efficiency of workers.

5) No outside intervention.
6) Industrial democracy. 7) No resistance of change.

8)Creativity of employees can be spotted out.

Limitations of WPM.
1) Workers are inefficient. 2) No participation possible in


problems. 3) Weak trade unions.

WPM at operational level

WPM at operational Level.

Joint management council

Shop councils and Joint councils

Formation of Joint Management Councils

consisting of equal representatives of workers and management was accepted by the Indian National Congress with the overall goal of a socialistic patterns of society in 1954.
Setting up such councils was purely on

voluntary basis and with a consultative function. Some of its important objectives were;

1) To serve as an authentic channel of

communication between the employees and the management.

2) To create a sense of participation amongst

3) To encourage suggestions from employees.

4) To help increase production and in general

5) To improve the working and living conditions of


The Management were to consult with the councils

on matters relating to introduction of new methods of production and administration of standing orders and their amendments.

The councils had the right to receive the

information about the economic status of the enterprise, marketing, production and sales programmers, methods of manufacture and work, annual balance sheet and profit and loss statement, and general working, present and future ,of the enterprise, which would help the members of the council to use this information while making some useful suggestions to the management

Though initially very enthusiastic in their approach,

the councils lost favour soon, both with management and the trade unions, due to hostile attitude of the trade unions, lack of interest by the workers ,and the indifference of the management.

Joint councils
This disinterest and subsequent development

were mainly on account of the fact that, although the worker is recognized as a partner of the management in joint bodies, he is not an equal partner in reality.
He cannot be so because he is subordinate to

management by the entire system of responsibility, duty ,control and obligation.

However ,interest in the field of workers'

participation was again revived in october,1975 under the 20-point economic programme.A scheme provided a two-tier model-shop council at the plant level and joint council at the enterprise level.

Shop council will attend to matters such as

increasing production ,overall efficiency of the shop/department ,control of wastetage, absenteeism on shop, safety and general maintenance of discipline,welfare,health measures etc.

The Joint Council will deal with matters like

optimum production, efficiency and fixation of productivity norms of machines and men,workplanning and achieving production targets, development of skills of operatives, schedules of working hours and holidays, rewards on valuable suggestions etc.

Within next two years ,the government extended

this scheme to commercial and service organization in public sector also.

The basic objective was to generate mutual trust

and confidence between the workers and the management ,to promote active involvement of workers in the entire production process.

Suggestion to make WPM Schemes Successful in


Pre-conditions for success.

The success of any scheme of participative

management is dependent on some of the basic points regarding work environment ,which are as under:
There should be a strong, demographic and

representative unionnism,without any political forces and multiplicity in unions.

Formation of mutually agreed and clearly spelt

objectives for participation, with emphasis on autonomy and satisfaction of higher needs of the workers.
Creation of working environment conducive to

participation ,without much rigid hierarchical structure and close supervision.

Ensure complete sharing of information which

shall ensure effective consultations and formation of policies.

Both parties should develop their attitude and

outlook, and must have full faith in the soundness of this concept.
Rights of each other are recognized and protected

by the presence of legal framework, thought is not used often.


Forms of WPM
Works Committees. Joint Management Councils.

Workers Representatives on the Board of

Management. Shop Councils. Joint Councils. Unit Councils. Other Forms of WPM, 1) Suggestion Schemes. 2) WP in Equity Capital.

3) Information Sharing model. 4) Consultation Model. 5)Association of Workers models. 6)Collective Bargaining Model. 7) Workers self Management model. 8) Descending Participation model. 9) Workers self management Model.