Human Resource

Management

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Industrial Relations
It refers to the employer employee relations
i.e. relationship which emerges from day to day
association of management and labor

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Participants in IR

Government

Employees &
Organizations (TU)

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Management

ICFAI

Main purpose of IR
Develop healthy labor-mgmt relations
Collective Bargaining
Trade union relations
Discipline
Maintenance of Industrial Peace
Industrial Disputes Act
To promote Industrial Democracy
Workers Participation in mgmt, Joint mgmt
councils

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Collective Bargaining
Term coined by Sidney & Beatrice Webb
The method of determining working conditions and terms of
employment through negotiations
Negotiation

about

working

conditions

&

terms

of

employment between an employer, a group of employers or

one or more employers organizations, on the one hand,
and one or more representative workers organizations on
the

other, with

view

to

reaching

an

International Labor Organization, Geneva, 1960]

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agreement.

Objectives
To settle disputes relating to wages, working conditions
To protect interests of workers through collective action
To resolve differences between mgmt & workers through
voluntary negotiations
To avoid third party interventions
Facilitate reaching a solution acceptable to both parties
Preventing strikes & lock-outs to enhance productivity

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CB conducted at 3 levels
1.

Plant level
(Union Plant)

2.

Industry Level
(Rashtriya Mill Mazdoor Sabha Mill Owners of
Mumbai)

3.

National Level
(INTUC & Mgmt)

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CB Contracts and Process

Bipartite Agreements Voluntary
Bipartite Settlements Regd. before conciliator
Collective Bargaining Process
Pre-negotiation Phase
Selection of Negotiators
Bargaining
Writing the Contract

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Pre-negotiation Phase
Preparation stage
Information gathering Internal & External
sources
Understanding the other party
Selection of Negotiators
Division heads
Negotiating skills

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Bargaining
Distributive vs. Integrative Strategy
Strategy Plan & Policies
Tactics- Theatrics

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Issues in Bargaining
Bargaining pressures
Strikes
Picketing
Boycott
lockout
Solutions
Mediation
Arbitration

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Writing the Contract

Contract with clauses
Wages
Working hours
Promotion
Overtime
Incentives
Welfare measures

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Workers participation in
Management

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Participation

It is a mental & emotional involvement of a

person in a group situation which encourages him
to

contribute

to

group

responsibility with them

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goals

and

share

WPM
A mechanism where workers have a say in the
decision making process of an organization
Based on trust, info-sharing, and mutual problem
solving

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Objective of WPM
Freedom for self expression
Feeling of Pride and importance
Sense of belonging
Integration of workers interest with that of
mgmt
Avoid industrial conflicts
Industrial Democracy
Mutual trust & respect
More committed workers
Upward communication
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Factors determining WPM

Situational Autonomy, Technology, Size,
Organization structure
Human Workers attitude and capacity to
participate, Managerial attitude

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Levels of Participation
Informative Level Sharing of information
Consultative Consult on matters related to
welfare
Associative Accept suggestion for solving
problems
Administrative discuss implementation of
decisions
Decisive joint decision making at all levels
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Forms of Participation

Suggestion schemes
Consultation
Joint administration
Joint Decision making
Collective Bargaining
Workers Participation in share capital

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WPM in India
IDA, 1947 Works Committees
ILC, 1957 JMC
Management & Miscellaneous Scheme, 1970
Workers rep on Board (in some public and
private sector enterprises)
1975 WPM scheme 2 tier model
Shop council, Joint council

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Works Committee
Provided under Industrial Disputes Act, 1947 (Sec3)
Rep of employers + employees
Every industry > 100 employees
Aim Harmonious IR
Functions
Discuss conditions of work,
Administer welfare funds
Educational & recreational activities
Encourage thrift & savings
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Works Committee

Reasons for Failure (NCL)

Advisory nature of recommendations
Vagueness regarding exact scope and functions
Inter union rivalries
Reluctance of employers

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Works Committee

Suggestions for effective WC by NCL

More responsive attitude of management
Adequate support of unions
Proper appreciation of scope & functions of WC
Whole hearted implementation of
recommendations of WC

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Joint Management Councils

Based on Recommendations of ILC tripartite sub
committee formed
Objective of JMC increased association,
improve operational efficiency, welfare facilities,
educate workers
Tripartite committee recommendations
>500employees
Fair record of IR
Well organized TU
Functions: right to be consulted on some
matters, right to receive info, administrative
responsibility

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