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Industrial relations

K ndustrial relations commonly denotes

³employee- employer relations´

K Industrial relations are born out of

employment relationship in an industrial
setting
K ºhe field of R
R R  èalso called

 R ) looks at the relationship
between management and workers, particularly
groups of workers represented by a union.
Ôistory of IR

K |efore late 18th century there was no word like IR into existence
K Small business : reason to direct relationship bet. Workers and
masters
K Personal and informal
K No necessity of middleman for communication
K Radical changes through industrial revolution in late 18th century
K Introduction to use of power machine and factory system
K Requirement of large amount of workers
K As a result «..Absence of direct communication
K åoncept of µManagement¶ came into existence

K Separation of ownership from management distinguished the

owners of the company¶s capital, its management and its workplace

K Natural trust and goodwill got replaced by mutual suspicion and

hatred

K Need to rebuild the relations between employee and employer

„ets understand the «Significance of
Industrial Relations
K *ood IR helps in economic progress of the country
- Problem of economic productivity
- |urden of Establishing and maintaining good relations

K It helps management to form labor relations policy and their

translations into action

K *ood IR helps to boost the discipline and morale of workers

- It ensures orderliness, effectiveness, and economy in the use of
resources
Salient features of IR«(What we understand)
K Industrial Relations are outcome of employment
relationships in an industrial enterprise
K The work situation may provide method of adjustment and
cooperation with each other
K The important actors of Industrial Relations are:
K --employees or their organizations
K --employers and their associations
K --and government
So what could be the objectives of
IR«?
K jevelop and promotion of harmonious labor
management relation
K Maintenance of industrial peace and avoidance of
industrial conflicts
K ºo safeguard the interest of labor, management, industry
and NAºIONAL EåONOMY as a whole
K Workers to have a say in decision making
K Encourage and develop trade union
K Avoiding industrial conflicts
K ºo boost the discipline and morale of workers
IR covers some of the following Areas
K åollective |argaining : Negotiation about working conditions and terms of
employment between employer and employee to reach an agreement

K Role of management, unions and government

K Machinery for resolution of industrial disputes :works committee ,

åoncillatory officerè settlement) ,labor courts etc.

K *rievances,labor welfare and security

K ºrade unions,workers participation

K Labour legislation : Internal social responsibility to provide some basic

amenities apart from pay, protect interest of workers, social welfare

ºhere are three majors players in industrial
relations
1. Management / employers
2. Labor /workers /employees
3. *overnment / regulator
Actors of Industrial Relations
K Employee/ Workman

K Union

K Employer

K *overnment

K åonsumer
›mployee
K Improve their condition of employment

K Views in any grievances

K Exchange view and ideas with management

K Share in decision making

K components of unions and associations

K Responsible for family and earning

K Profit makers for organizations

ºrade Unions
K åollective image of employees in organization

K Unions are institutions in organization which are different than the nature of an

individual employee

K Legal existence through trade unions act

K Politicians act as a head of union many of time

K Most of the time there is a pressure for decision making

K ºo redress the bargaining power of Individual worker.

K ºo secure improved terms and conditions of employment.

K ºo secure improved status for the worker in his or her work.

›mployer
K Main factor for generating an employment
K åreating and maintaining employee motivation
K Obtaining commitment from workforce
K Achieving high levels of efficiency
K Negotiating terms and conditions of employment
K Employer includes proprietors, partners, joint stock
companies, state and central government
*overnment
K ºhe govt. regulates the relationship between the management and

the labour

K Seeks to protect the interest of both the groups.

K ºhe authority of the courts to settle legal disputes.

K It controls IR for:

K --saving the workman from exploitation where unions are weak

K --ensuring planned economic growth of country and saving its

limited resources from wastages and strikes

åonsumer
K Much neglected person in the society

K He brings about pressure on employer as well as employee for

speedy solutions of industrial problems

åonditions for *ood Industrial
Relations
K Past record of industrial relations èharmonious or rivalry)
K Economic satisfaction of workers èbasic survival need)
K Social and Psychological Needs of workers: incentives«
K Off the job conditions of the workers
K Strong and Enlightened responsible labor unions
K Negotiation skills and attitude of management and workers èvarying
backgrounds, must possess empathy)
K Legislation :*ovt intervention, 3 rd major force
K Education, training and development of workers
K Inter personal relations, Social and psychological satisfaction :
supportive climate along with economic rewards
åause of Poor Industrial Relations
K Uninteresting nature of work : due to automation ±role of worker reduced,
stereo typed work

K Political nature of unions : [
 
 


 


 
 




 


 

K Poor wages : Inequity in wages , complicated wage system

K Occupational instability : do not want changes in the job-fear or insecurity

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›ffects of Poor Industrial Relations
K Poor IR leave behind lot of privation of reduction in output and
profits.
K |elow are ill effects of poor IR:
K Multiplier effect: modern industries are interconnected with each
other to fulfill their needs

K Resistance to change: methods, processes and techniques have to

be improved. New technologies have to be introduced.

K jeclines in normal working: strained IR affect to absenteeism and

labour turnover

K Frustration and social cost: Work is to satisfy social and personal

needs than to only µwork¶
Suggestions to improve Industrial
Relations
K |oth management and union should develop constructive attitude
towards each other with mutual constraint

K ºhere should be an existence of mutual trust and confidence

K All basic policies and procedures relating to IR should be clearly

communicated to all

K Right kind of union leadership: management should create

conditions that would stimulate the growth
ºhank You««.
Approaches to IR
Systems approach

K Systems framework by John junlop

‡ Actors
process ‡ Rules
‡ Environmental ‡ bargaining ‡ settlement
contents ‡ åonciliation
‡ Ideology ‡ arbitration

input output
K Actors: managers, workers and government agencies

K Actors influenced by several forces in environment ± technology,

markets and power relation in society

K Ideology: ºhough there is conflict among the actors but there is also
a shared ideology and compatibility of ideas which help to resolve
conflict by framing rules

K ºhe network or web of rules

Unitary approach

ºhe organisation is, or should be, an integrated group of

people with a single authority/loyalty structure and a set
of common values, interests and objectives shared by all
members of the organisation.

r Management's prerogative èi.e. its right to manage and

make decisions) is regarded as legitimate, rational and
Accepted

r Opposition to it èwhether formal or informal, internal or

external) is seen as irrational

r In short:
r ± the organisational system is in harmony
r ± conflict is unnecessary and exceptional
Pluralist approach
K |ased on assumption that organization is composed of individuals
who make up distinct sectional groups , each with its own
interests , objectives and leadership.

K Recognition of diverging interests between workers, employers

and government

K åonflict is the total range of behaviour and

attitudes that express opposition and divergent orientation and it
is perceived as both rational and inevitable.

K |ut focus is on framework of regulating work

relationships-balance of power between management and trade
unions
åonflict is necessary ,but it can be and needs to be managed and
resolved
 ¢arxist Approach
K If shared ideology than why is that conflict never ceases.
K åonflicts can never cease until capital accepts that labor
has right to an equal share in power.
K Production system is privately owned and is motivated by
profit.
K IR is the study of µprocesses¶ of control over work relations,
Its about who controls , how , what and why.
ºrusteeship

K Proposed by Mahatma *andhi

K åompany accepts its total responsibility and

management role becomes that of balancing all the
claims upon the company.

K Inherent responsibility to its consumers, workers,

shareholders, and the community
K *reater good
K So long as 60% of the workforce is in
agriculture and contributes to 25% of the
*jP , the lot of the workforce in agriculture
cannot and will not improve. jiscuss the
strategies to deal with the issue?