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Acknowledgment
The preparation of this report is a sound example of teamwork. The experience is a valuable one because not only did the report increase our understanding and knowledge on the assigned topic, i.e. Causes of poor IR in BD and pre-requisites for improving employee relation in Organization. It also taught us important lessons of how to incorporate out theoretical knowledge to enhance the understanding of practical implications. In addition, it also gave us a thorough opportunity to learn from others; despite conflicting ideas, the teams managed to join efforts and reach unanimous decisions at the end. It re-defined our skills of working with others to reach a final goal, and improved our communication as well as tolerance levels.

However, this would not have been possible had we not been given the opportunity to present this report. Therefore, we would like to express the deepest appreciation to our course instructor, Tamima Hossain, Lecturer, BBA Program, and M.H. School of Business, who has been a continuous source of guidance throughout the report and has always been there to answer our quarries.

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Executive Summary
This studies on Poor industrial relation in Bangladesh and its cure- how to improve Industrial Relation in organization. Industrial Relation is deals with the manpower of the enterprise and the management which is concerned with whether machine operator, skilled worker or manager. Rapid and sustainable industrial development is the mean for the national prosperity. Healthy industrial relation is the only way for greater productivity, and greater productivity can create more and more investment for industrialization. Here, industrial situation is not giving as enough hope towards the above. Here, trade unions are not well organized, powerful, not backed by spontaneous workers support, highly politicalized, and the members are not efficient enough to raise voice for the workers. Many of the entrepreneurs, and employers do not believe in industrial relation, rather they like treating workers as the most neglected component of production, uses the bad technique of managing the leaders rather than encouraging trade union for industrial relation. Industrial relation situation in Bangladesh is not encouraging. But for the greater interest of the nation organizations should emphasis on sound industrial relation that can expedite national development.

Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

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Introduction
In the term Industrial Relation (IR), Industry means any productive work or more specifically production process and Relation is human relation in the production process. Thus, industrial relations mean relationship between management and employees; and relationship among the employees in the course of running of an industry or organization. The concept industrial relation has been addressed as different terms i.e. labor relations, employee relations, organizational relation and work life relations in the study of HRM. According to V. Agnihotri, industrial relation is industrial workers relation with their management, which directly or indirectly refers to trade union and management relationship. Henry Richardson defines industrial relation as an art of living together for productivity. Dunlop explained industrial relation as a sum total of relationship between workers, their organization, managers and government or law. In the opinion of Arun Monappa, industrial relation is a set of functional interdependence involving historical, economic, social, psychological, demographic, technological occupational, political and legal variables. In view of the definitions, industrial relation comprises of all the issues of industrial life allied to wages, conditions of work and work place, trade unionism, industrial hazards, fatigue, monotony, absenteeism, labor turnover, productivity, collective bargaining etc. Industrial relation is treated as a measuring instrument for industrial productivity.

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Objective of this Report

The main objective of the report is comparative analysis and to examine some data and trends causes of poor Industrial Relation in Bangladesh & pre-requisites for improving employee relation in Organization. This report will reveal causes of poor IR and how it can overcome.

This objective comprises three main goals: 1. To highlight objective of IR and its impact. 2. Analyze the causes of poor IR. 3. To provide pre-requisites how employee relation can improve. That is why we tried to find out the present IR situation in Bangladesh and what the reasons are behind it. We also tried to know the cures how we can improve IR in organization. Knowing about functional requirements of a successful industrial relations program is also an objective in this report.

Limitations of the study

There were some obstacles, which were hard to meet up with. The limitations are: Lack of adequate information due to confidentiality. Lack of documented and concrete secondary materials. Direct observation requires extensive time involvement, which may not be possible.

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Methodology
This report relies principally on the contributions of two sources: Primary Sources Secondary Sources The sources which have been reviewed are: books, journals, reports, and data from various unofficial sources. We have also used internet sources to collect information on industrial relations. As a methodology, both qualitative and quantitative approaches have been adopted. Besides presenting data, the study analyses the historical evolution of industrial relations system and the legal instruments used therein. Collection of data and statistics, particularly in the case of collective bargaining, was somewhat impeded by the unavailability of official statistics.

In preparing this report, we use MS Ward 2007 and Excel 2007 Worksheet to illustrate the numeric data. To include graphical content we use line and Bar chart.

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Industrial Relations
Industrial relation means the relationship between employers and employees in course of employment in industrial organizations. However, 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. According to International Labor Organization, Industrial relations comprise relationships between the state on one hand and the employers and employees organization on the other, and the relationship among the occupational organizations themselves.

Features of Industrial Relations

Industrial relations are outcomes of employment relationships in an industrial enterprise. These relations cannot exist without the two parties namely employers and employees. Industrial relations system creates rules and regulations to maintain harmonious relations. The government intervenes to shape the industrial relations through laws, rules, agreements, terms, charters etc. 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. 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. Industrial relations include both individual relations and collective relationships.

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Objectives of Industrial Relations

To bring better understanding and cooperation between employers and workers. To establish a proper channel of communication between workers and management. To ensure constructive contribution of trade unions. To avoid industrial conflicts and to maintain harmonious relations. To safeguard the interest of workers and the management. To work in the direction of establishing and maintaining industrial democracy. To ensure workers participation in decision-making. To increase the morale and discipline of workers. To ensure better working conditions, living conditions and reasonable wages. To develop employees to adapt themselves for technological, social and economic changes. To make positive contributions for the economic development of the country.

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. 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 co-operation and increasing production. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 8 of 18 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. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. 4. Mental Revolution: The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employers authority. It will naturally have impact on production because they recognize the interest of each other. 5. New Programs: New programs for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. It increases the efficiency of workers resulting in higher and better production at lower costs. 6. Reduced Wastage: Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected 7. Contributes to economic growth and development.

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Industrial Relations in Bangladesh

Scope of industrial relations involves all the variables of industrial life which is in turn having direct bearing on total social life. The main objective of industrial relation is to maintain harmoniums production situation, avoiding industrial unrest for smooth productivity. The G-8 countries have high industrialization; and high industrialization was possible only on excellent industrial relation situation. If there is no industrial relation or no relationship between employers and worker, or among the employers, production or productivity will not come into reality. Bangladesh is not an industrialized country nor does it have huge natural resources as yet. People could be the only resource if they could be turned into human resources. Rapid and sustainable industrial development is the mean for the national prosperity. Healthy industrial relation is the only way for greater productivity, and greater productivity can create more and more investment for industrialization. Here, industrial situation is not giving as enough hope towards the above. Here, trade unions are not well organized, powerful, not backed by spontaneous workers support, highly politicalized, and the members are not efficient enough to raise voice for the workers. Many of the entrepreneurs, and employers do not believe in industrial relation, rather they like treating workers as the most neglected component of production, uses the bad technique of managing the leaders rather than encouraging trade union for industrial relation.

Causes of poor Industrial Relations in Bangladesh

Government action in support of globalization has to rely on policy planning and delivery services provided by the public sector. This sector has to be restructured to meet the demands of, or overcome problems arising from, globalization (e.g., demands from MNCs and domestic firms for less red tape; and the problem of enterprises having to rely on inefficient public enterprises for provision of basic services). In this regard, Ministries of Labor often have a narrow and reactive role. Given the importance of industrial relations to economic development, they should be working more actively with planning and finance Ministries to generate development options, create more coherent and coordinated strategies and, generally, improve public sector efficiency. There is also a need for governments to include trade unions in any public sector reform process and take account of their major concerns. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 10 of 18 Finally, governments should continue to promote bipartite and tripartite institutions and processes to establish appropriate labor policy and standards. Inputs from all relevant parties should be considered. Not only will this limit potential conflict in the future, but (particularly where major business and investment interests including those of MNCs are involved) it should establish a sound basis for investment and economic and employment growth.

Key Aspects of poor Industrial Relations in Bangladesh

Economic causes: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labor. 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. Organizational causes: Faulty communications system, unfair practices, nonrecognition of trade unions and labor laws are also some other causes of poor relations in industry. 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. Psychological causes: Lack of job security, non-recognition of merit and performance, poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations. 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.

However, the following are briefly the causes of poor industrial relations: 1. Mental inertia on the part of management and labor; Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 11 of 18 2. An intolerant attitude of contempt of contempt towards the workers on the part of management. 3. Inadequate fixation of wage or wage structure; 4. Unhealthy working conditions; 5. Indiscipline; 6. Lack of human relations skill on the part of supervisors and other managers; 7. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible; 8. Inappropriate introduction of automation without providing the right climate; 9. Unduly heavy workloads;

10. Inadequate welfare facilities; 11. Dispute on sharing the gains of productivity; 12. Unfair labor practices, like victimization and undue dismissal; 13. Retrenchment, dismissals and lock-outs on the part of management and strikes on the part of the workers; 14. Inter-union rivalries; and 15. General economic and political environment, such as rising prices, strikes by others, and general indiscipline having their effect on the employees attitudes.

In short, industrial relation situation in Bangladesh is not encouraging. But for the greater interest of the nation organizations should emphasis on sound industrial relation that can expedite national development. For a hopeful industrial revolution there is urgent need to fulfill some prerequisites like: Establishing excellent relationship, mutual trust and honor between employers and workers at highest level Avoidance of industrial unrest, establishment and maintaining harmonious labor management relationship Increasing employees efficiency;

Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 12 of 18 Ensuring highest productivity through concerted efforts of employers and employees Providing possible better wages, safe work place, good work environment, and sufficient welfare for workers, which in term will surely increase productivity. Establishing social security system and safety net for the employees. Now a day, the employers, workers and government are thinking on industrial development through high quality of industrial relations.

Scope of improve Industrial Relations

The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy labor management relations, creating industrial peace and developing industrial democracy. The cordial and healthy labor management relations could be brought in by safeguarding the interest of the workers; by fixing reasonable wages; by providing good working conditions; by providing other social security measures; by maintaining healthy trade unions; By collective bargaining.

The industrial peace could be attained by setting industrial disputes through mutual understanding and agreement; By evolving various legal measure and setting up various machineries such as Works Committee, Boards of Conciliation, and Labor Courts etc. The industrial democracy could be achieved by allowing workers to take part in management; and

Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 13 of 18 By recognition of human rights.

Pre-requisites Organization

to

improve

Employee

Relations

in

an

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 employee relations should be fair and transparent to everybody in the enterprise and to the union leaders. Participative management: Employees should associate workers and unions in the formulation and implementation of HR policies and practices. Responsible unions: A strong trade union is an asset to the employer. Trade unions should adopt a responsible rather than political approach to employee relations. Employee welfare: Employers should recognize the need for the welfare of workers. They must ensure reasonable wages, satisfactory working conditions, and other necessary facilities for labor. Management should have a genuine concern for the welfare and betterment of the working class. Grievance procedure: A well-established and properly administered system committed to the timely and satisfactory redressed of employees grievances can be very helpful in improving Industrial relations. A suggestion scheme will help to satisfy the creative urge of the workers. Constructive attitude: Both management and trade unions should adopt positive attitude towards each other. Management must recognize 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 endeavor for good employee relations. Creating a proper communication channel to avoid grievances and

misunderstandings among employees Education and training imparted to the employees

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Planning to Developed Industrial Relations: Tasks Ahead

In future organization systems, employees would consider themselves to be partners in management and expect their talents to be utilized to the fullest. With increased self-esteem and self-image, young graduates will resist authority and would challenge prevailing management prerogatives. Tomorrows management control centers, advanced OR models will aid future managers in the use of resources, they would need to balance humanistic values with the flow of advancing science and technology. According to Victor Fuchs, In future, the large corporation is likely to be over-shadowed by the hospital, university, research institutes, government offices and professional organizations that are the hallmarks of a service economy. Following the concept of corporate citizenship, the responsible corporation has to develop as a social institution, where people share success and failure, create ideas, interact and work for development and realization of the individuals potential as human being.

Since Industrial Relations is a function of three variables management, trade unions and workers, a workable approach towards planning for healthy labor-management relations can be developed by: Defining the acceptable boundaries of employer/ employee action; Granting the freedom to act within these boundaries; and Monitoring the resulting developments.

For achieving the objectives of improved management trade union the following line fo action is suggested: A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. Proper organization climate and extension of area of Industrial Relations,

Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 15 of 18 Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant, industry and national levels. A comprehensive system of rules and discipline, The maintenance of an efficient system of communication, An objective follow-up pattern for industrial relations system. Respect for public opinion and democratic values An integrated industrial relations policy incorporating rational wage policy; trade union and democratic rights, sanctity of ballot, collective bargaining and tripartite negotiations. Whatever, labor laws may lie down, it is the approach of the management and union which matters and unless both are enlightened, industrial harmony is not possible. In fact both managements and workers need a change in their philosophy and attitudes towards each other. In all fairness, both management and workers should not look upon themselves as two separate and distinct segments of an organization, but on the contrary, realize that both are partners in an enterprise working for the success of the organization for their mutual benefit and interest. It is becoming increasingly obvious that industrial peace amongst all participants in the industrial relations systems requires truth as foundation, justice as its rule, love as its driving force, and liberty as its atmosphere.

Functional Requirements of a Successful Industrial Relations Program

The basic requirements on which a successful industrial relations program is based are: a) Top Management Support: - Since industrial relations is a functional staff service, it must necessarily derive its authority from the line organization. This is ensured by Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 16 of 18 providing that the industrial relations director should report to a top line authority to the president, chairman or vice president of an organization. b) Sound Personnel Policies: - These constitute the business philosophy of an organization and guide it in arriving at its human relations decisions. The purpose of such policies is to decide, before any emergency arises, what shall be done about the large number of problems which crop up every day during the working of an organization. Policies can be successful only when they are followed at all the level of an enterprise, from top to bottom. c) Adequate Practices should be developed by professionals: - In the field to assist in the implementation of the policies of an organization. A system of procedures is essential if intention is to be properly translated into action. The procedures and practices of an industrial relations department are the tool of management which enables a supervisor to keep ahead of his job that of the time-keeper, rate adjuster, grievance reporter and merit rater. d) Detailed Supervisory Training :- To ensure the organizational policies and practices are properly implemented and carried into effect by the industrial relations staff, job supervisors should be trained thoroughly, so that they may convey to the employees the significance of those policies and practices. They should, moreover, be trained in leadership and in communications. e) Follow-up of Results: - A constant review of an industrial relations program is essential, so that existing practices may be properly evaluated and a check may be exercised on certain undesirable tendencies, should they manifest themselves. A follow up of turnover, absenteeism, departmental morale, employee grievances and suggestion; wage administration, etc. should be supplemented by continuous research to ensure that the policies that have been pursued are best fitted to company needs and employee satisfaction. Hints of problem areas may be found in exit interviews, in trade union demands and in management meetings, as well as in formal social sciences research.

Conclusion
It is evident that good industrial relation is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 17 of 18 realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.

Reference
Tamima Hossain, A Handbook on Industrial Relation Khan Sarfaraz Ali and Dr.Nasima Khatun. A Handbook on HR Solution (2009). (ISBN: 978984-33-0505-3) Causes of poor IR in BD & pre-requisites for improving employee relation in Organization

Page 18 of 18 Dr. Abdullah Al Faruque, Current Status and Evolution of Industrial Relations System in Bangladesh, International Labour Organization www.navimumbaicollege.com/uploads/433_Industrial_Relations.doc http://www.yourhrworld.com/industrial-relations/4268-causes-poor-ir-its-outcomes.html http://www.scribd.com/doc/33834904/Industrial-Relations-in-Bangladesh http://kmmhasan.wordpress.com/2008/12/29/causes-of-poor-industrial-relations-inbangladesh/ http://www.scribd.com/doc/35840151/Main-Trade-Unions-and-Industrial-Relations-inBangladesh

Causes of poor IR in BD & pre-requisites for improving employee relation in Organization