Importance and Scope of IR

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Industrial Relations

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1 Importance of Industrial Relations and Scope of Industrial Relations

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2 Industrial Relation System Industrial relations means the relationship between employers and employees in course of employment in industrial organisations. The concept of Industrial Relations has a broader meaning. In a broad sense, the term Industrial Relations includes the relationship between the various unions, between the state and the unions as well as those between the various employers and the government. Relations of all those associated in an industry may be called Industrial Relations.

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3 Industrial Relation System Definition: “Industrial relations are the complex interrelations among managers, workers and agencies of the government”. According to International Labour Organisation (ILO) , Industrial relations comprises relationships between the state on one hand and the employer’s and employee’s organisation on the other, and the relationship among the occupational organisations themselves.

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4 Features of Industrial Relations: 1. Industrial relations are outcomes of employment relationships in an industrial enterprise. These relations cannot exist without the two parties namely employers and employees. 2. Industrial relations system creates rules and regulations to maintain harmonious relations. 3. The government intervenes to shape the industrial relations through laws, rules, agreements, terms, charters etc. 4. Several parties are involved in the Industrial relations system. The main parties are employers and their associations, employees and their unions and the government. These three parties interact within economic and social environment to shape the Industrial relations structure.

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5 Features of Industrial Relations: 5. Industrial relations are a dynamic and developing concept, not a static one. They undergo changes with changing structure and scenario of the industry as and when change occurs. 6. Industrial relations include both individual relations and collective relationships.

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6 FACTORS OF INDUSTRIAL RELATIONS Industrial relations are influenced by various factors, viz., institutional factors, economic factors and technological factors. Political Factors. Social and Cultural Factors, Governmental Factors.

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7 FACTORS OF INDUSTRIAL RELATIONS Institutional Factors: These factors include government policy, labour legislations, voluntary courts, collective agreement, employee courts, employers’ federations, social institutions like community, caste, joint family, faith, system of beliefs, attitudes of works, system of power status etc. Economic Factors: These factors include economic organization, like capitalist, communist mixed etc., the structure of labour force, demand for supply of labour force etc. Technological Factors: These factors include mechanization, automation, rationalization, and computerization.

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9 FACTORS OF INDUSTRIAL RELATIONS Political Factors: These factors include political system in the country, political parties and their ideologies, their growth, mode of achievement of their policies, involvement in trade unions etc. Social and Cultural Factors: These factors include population, religion, customs and tradition of people, race ethnic groups, cultures of various groups of people etc. Governmental Factors: These factors include Governmental policies like industrial policy, economic policy, and labour policy, export policy etc.

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10 Importance of Industrial Relations: 1. Uninterrupted Production: The most important benefit of industrial benefits is that it ensures continuity of production. This means continuous employment for all involved right from managers to workers. There is uninterrupted flow of income for all. Smooth running of industries is important for manufacturers, if their products are perishable goods and to consumers if the goods are for mass consumption (essential commodities, food grains etc.). Good industrial relations bring industrial peace which in turn tends to increase production.

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11 Importance of Industrial Relations: 2. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes. Strikes, grievances and lockouts are some of the reflections of Industrial unrest. Industrial peace helps in promoting cooperation and increasing production. Thus good Industrial relations help in establishing Industrial democracy, discipline and a conducive workplace environment. 3. High morale: Good Industrial relations improve the morale of the employees and motivate the worker workers to work more and better.

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12 Importance of Industrial Relations: 4. Reduced wastage: Good Industrial relations are maintained on the basis of co-operation and recognition of each other. It helps to reduce wastage of material, manpower and costs. 5. Contributes to economic growth and development.

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13 Causes of poor Industrial Relations: 1. Economic causes: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labour. Unauthorised deductions from wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive schemes are other economic causes. Other causes for Industrial conflicts are inadequate infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance etc.

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14 Causes of poor Industrial Relations: 2. Organisational causes: Faulty communications system, unfair practices, non-recognition of trade unions and labour laws are also some other causes of poor relations in industry. 3. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations. Dissatisfaction with job and personal life culminates into Industrial conflicts.

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15 Causes of poor Industrial Relations: 4. Psychological causes: Lack of job security, non-recognition of merit and performance, poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations. 5. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective trade unions system prevailing in the country has been one of the most responsible causes for Industrial disputes in the country.

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16 Suggestions to improve Industrial Relations: 1. Sound personnel policies: Policies and procedures concerning the compensation, transfer and promotion, etc. of employees should be fair and transparent. All policies and rules relating to Industrial relations should be fair and transparent to everybody in the enterprise and to the union leaders. 2. Participative management: Employees should associate workers and unions in the formulation and implementation of HR policies and practices.

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17 Suggestions to improve Industrial Relations: 3. Responsible unions: A strong trade union is an asset to the employer. Trade unions should adopt a responsible rather than political approach to industrial relations. 4. Employee welfare: Employers should recognise the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, and other necessary facilities for labour. Management should have a genuine concern for the welfare and betterment of the working class.

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18 Suggestions to improve Industrial Relations: 5. Grievance procedure: A well-established and properly administered system committed to the timely and satisfactory redressal of employee’s grievances can be very helpful in improving Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers. 6. Constructive attitude: Both management and trade unions should adopt positive attitude towards each other. Management must recognise unions as the spokesmen of the workers’ grievances and as custodians of their interests. The employer should accept workers as equal partners in a joint endeavour for good Industrial relations.

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19 Suggestions to improve Industrial Relations: 7. Creating a proper communication channel to avoid grievances and misunderstandings among employees 8. Education and training imparted to the employees

How Management and Union operate in an organisation :

How Management and Union operate in an organisation

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21 Scope of Industrial Relations 1. Development of Healthy Labour-Management Relations : The existence of strong, well-organized, democratic and responsible trade unions and associations of employers can lead to: Job security of employees Increased workers' participation in management Negotiations, consultations and discussions Good labour-management relations.

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22 Scope of Industrial Relations 2. Maintenance of Industrial Peace : Industrial peace pre-supposes the absence of industrial strike. Industrial peace is essential for increased productivity and harmonious labour-management relations. The industrial peace can be largely nurtured through the following means: Machinery should be set up for the prevention and settlement of industrial disputes The industrial peace can also be attained by the creation and maintenance of implementation cells and evaluation committees which have the power to look into implementation of agreements, settlements and awards and also violations of statutory provisions laid down under various labour laws.

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23 Scope of Industrial Relations 3. Development of Industrial Democracy: The idea of industrial democracy states that the labour should have the right to be associated with the management of an industry. To achieve this objective, the following techniques are usually employed:

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24 Scope of Industrial Relations 3. Development of Industrial Democracy: Establishment of the Shop Councils and Joint Management Councils at the floor and plant level. These councils aim at: Improving the working and living conditions of employee Improving productivity, encourage suggestions from employees Assisting the administration of laws and agreements Serve as a channel of communication between the management and employees Creating among the employees a sense of participation in the decision-making process and Sense of belonging to the industry.

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25 Measures to Improve IR Progressive Management out look Strong & Stable Unions Mutual Trust. Mutual Accommodation Sincere Implementation of Agreements Workers participation in Management Sound personnel policies Government's Role.

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26  Factors affecting the industrial relations in an organization  Thanks

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