Industrial Relations

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Industrial Relations:

Industrial Relations

Industrial Relations:

The term ‘Industrial Relations’ comprises of two terms: ‘ Industry’ and ‘ Relations “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.” Industrial Relations

Scope of IR:

Labour relations, i.e., relations between labour union and management. Employer-employee relations i.e. relations between management and employees. The role of various parties’ viz., employers, employees, and state in maintaining industrial relations. The mechanism of handling conflicts between employers and employees, in case conflicts arise Scope of IR

Objectives of IR:

The primary objective of industrial relations is to maintain and develop good and healthy relations between employees and employers or operatives and management Establish and foster sound relationship between workers and management by safeguarding their interests Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties Objectives of IR


Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of workers Provide an opportunity to the workers to participate in management and decision making process Raise productivity in the organisation to curb the employee turnover and absenteeism Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of relationship between workers and management Cont ….


Establish and nurse industrial democracy based on labour partnership in the sharing of profits and of managerial decisions Socialize industrial activity by involving the government participation as an employer Change with change in the political government across the countries Improvement of economic conditions of workers State control over industrial undertakings with a view to regulating production and promoting harmonious industrial relations Cont ….

Importance of IR:

Uninterrupted production Reduction in Industrial Disputes High morale Mental Revolution Reduced Wastage Foster Industrial Peace Promote Industrial Democracy Benefit to Workers Benefit to Management Importance of IR

Parties to IR:

Parties to IR Industrial Relations Employees Employers Government Courts & Tribunals Employer Associations Trade Union


Among the participants to IR, employees are considered as the most affected one by the IR system prevalent in an organisation Generally, employees perceive IR as a means to improve their conditions of employment, voice against any grievances, exchange views and ideas with management and participate in organisational decision making processes Employees participate in the IR system through their associations, or say, trade unions Employees

Objective of IR to Employees:

To redress the bargaining advantage on one-on-one basis, i.e., individual worker vis -a- vis individual employer by way of joint or collective actions. To secure better terms and conditions of employment for their members. To obtain improved status for the worker in his/her work To increase democratic mode of decision making at various levels Objective of IR to Employees


Employer is the second party to IR In the corporate organisation , employer is represented by the management Management becomes responsible to various stakeholders in an organisation including employees Like employees’ associations, employers also form their associations at the local, industry and national levels Employer

Objectives of the employers’ associations:

Represent employers in collective bargaining at the national or industry level. Develop machinery for avoiding disputes. Provide feedback on employee relations. Advise member organisations on the issues relating to IR Negotiating terms and conditions of employment with the representatives of employees Objectives of the employers’ associations


The role of government in the matter of industrial relations has been changing along with changes in industrial environment and management perspective Government tries to regulate the relationship of employees and employers, and also keeps an eye on both groups to keep each in line This relationship is enforced and maintained through labour courts, industrial tribunals, wage boards, investigating and enquiry committees, etc., Government

Develop Sound Industrial Relations:

Developing Trust between Labour and Management Existence of Sound and Democratic Trade Unions Maintenance of Industrial Peace Continuous Feedback and Monitoring Professional Approach Develop Sound Industrial Relations

Approaches of IR:

The three popular approaches to industrial relation are as follows: 1 . Unitary Approach 2 . Pluralistic Approach 3 . Marxist Approach Approaches of IR


Pluralistic Co-operation Conflict Authoritarian Paternalism Unitary Human resource management Systems Evolution Revolution Marxist Control of the labour process Input Conversion Output Conflict (differences) Institutions and processes Regulation (rules) Social action Labour market Comparative

Unitary Approach:

The Unitary approach to IR is based on the assumption that every one-be it employee, employer or government-benefits when emphasis is on common interest IR is grounded in mutual co-operation, individual treatment, team work and shared goals. Assumption : Common interest & promotion of harmony No strikes are there. It’s a reactive IR strategy. They seek direct negotiations with employees Unitary Approach

Pluralistic Approach:

Pluralistic approach is a departure from unitary approach of IR It perceives: Org. as a coalitions of competing interest. TU as legitimate representatives of employee interests. Stability in IR as the product of concessions and compromises between management & unions Conflict is viewed as conducive for innovation and growth Pluralistic Approach

Marxist Approach:

But marxists unlike pluralists, regard conflict as a product of the capitalist society based on classes Marxists see conflict as a product of the capitalist society Conflict arises due to the division in the society between those who own resources and those who have only labor to offer For Marxist all strikes are political Marxist Approach

Human Relations or Neo-Classical Approach:

According to this theory, conflict is an aberration and not the natural state of human society This aberration occurs when tendency of the industrial society is to treat worker as an isolated individual , and deprive him of all control over his environment The core of human relations theory consists in the importance attributed to the small informal social groups as a source of human satisfaction Human Relations or Neo-Classical Approach

Social Action Approach:

The situations in which they are engaged and these are taken as an initial basis for the explanation of their social behaviour and relationships This model points out the reciprocal nature of the relationship between social structure and behaviour General explanations of social action are not possible simply because of the nature of the subject of social sciences – men do not react to the stimuli in the same way as matter in the natural sciences Social Action Approach

Systems Approach:

The systems approach views the industrial relations system as a sub-system of the society or the total social system The society is seen as providing certain external influences and constraints but not as completely dominating industrial relations Systems Approach

Gandhian Approach:

Gandhiji‟s views on industrial relations are based on his fundamental principles of truth and non-violence and non-possession This philosophy presumes the peaceful co-existence of capital and labour , which calls for the resolution of conflict by non-violent , non-cooperation (i.e., Satyagraha), which actually amounts to peaceful strikes in ordinary parlance Gandhian Approach

Industrial Dispute:

According to Industrial Dispute Act- 1947 : Industrial dispute means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person Industrial Dispute

Industrial dispute:

Strike Economic Strike Sympathetic Strike General Strike Sit Down Strike Slow Down Strike Lock-out Gherao Picketing Industrial dispute

Causes of Industrial Disputes:

Economic causes Wages , Bonus , Dearness allowance, Conditions of work and employment, Working hours, Leave and holidays with pay, and Unjust dismissals or retrenchments Causes of Industrial Disputes

Causes of Industrial Disputes:

Non-economic causes include: Recognition of trade unions, Victimisation of workers, Ill-treatment by supervisory staff, Sympathetic strikes, Political causes Causes of Industrial Disputes

Causes of Industrial Disputes:

Miscellaneous causes Workers’ resistance to rationalization, introduction of new machinery and change of place of factory. Non-recognition of trade union. Rumours spread out by undesirable elements. Working conditions and working methods. Lack of proper communication. Behaviour of supervisors. Trade union rivalry Causes of Industrial Disputes

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