Industrial Relations

Definition: The Industrial Relations or IR encompasses the relationship between

the management and workmen and the role of a regulatory body to resolve any
industrial dispute.

As the name implies, Industry Relations comprises of two words, Industry, and
Relations. Where industry covers the production activity in which the group of
workmen is engaged in, while the relations show the relationship between the
management and the workers within the industry. IR plays a significant role in
today’s working scenario where the harmonious relationship between the
employers and employees is needed to have an uninterrupted production. The
Industrial Relations mainly cover the following:

 Regulatory body to resolve industrial disputes.

 Collective Bargaining.
 The role of management, unions and government.
 Labor Legislation
 Worker’s Grievance Redressal system.
 Disciplinary policy and practice.
 Industrial Relations Training.


OR
Industrial Relations
“Industrial relationship is about the relationship between an employee and
management. This page carries information about Industrial relations and its
concept through definition and description of industrial relation.”
Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of
labors and harmonious relationships. Therefore, it is in the interest of all to create
and maintain good relations between employees (labor) and employers
(management).
Definition of Industrial Relations

Industrial relation is defined as relation of Individual or group of employee and

employer for engaging themselves in a way to maximize the productive activities.
In the words of Lester, “Industrial relations involve attempts at arriving at solutions
between the conflicting objectives and values; between the profit motive and social
gain; between discipline and freedom, between authority and industrial democracy;
between bargaining and co-operation; and between conflicting interests of the
individual, the group and the community.

Concept of 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.” The term industrial
relations explains the relationship between employees and management which
stems directly or indirectly from union-employer relationship.
Industrial relations are the relationships between employees and employers within
the organizational settings. The field of industrial relations looks at the relationship
between management and workers, particularly groups of workers represented by a
union. Industrial relations are basically the interactions between employers,
employees and the government, and the institutions and associations through which
such interactions are mediated.
The term industrial relations has a broad as well as narrow outlook. Originally,
industrial relations was broadly defined to include the relationships and
interactions between employers and employees. From this perspective, industrial
relations covers all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labor)
relations. Now its meaning has become more specific and restricted. Accordingly,
industrial relations pertains to the study and practice of collective bargaining, trade
unionism, and labor-management relations, while human resource management is a
separate, largely distinct field that deals with nonunion employment relationships
and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and
their employer and the relationships between employees. The relationships
employers and workers have with the organizations are formed to promote their
respective interests, and the relations between those organizations, at all levels.
Industrial relations also includes the processes through which these relationships
are expressed (such as, collective bargaining, workers’ participation in decision-
making, and grievance and dispute settlement), and the management of conflict
between employers, workers and trade unions, when it arises.

Need for Industrial Relation

Need of Industrial Relation has arisen to defend the interest of workers for
adjusting the reasonable salary or wages. It also helps the workers to seek perfect
working condition for producing maximum output. Workers/employees are
concerned with social security measures through this. Industrial Relations is also
needed for achieving the democracy by allowing worker to take part in
management, which helps to protect human rights of individual.Salaries in India
are much more attractive in Indian subcontinent. As India is having flourishing
economy, the job opportunities are emerging and there is huge scope of expansion.
The salary pattern of India is also growing. Even, the seventh pay commission is
also spreading the way to coming soon. The Salaries of private sector is also in the
upswing mode with the increase of 11% annually. Although, Inflation is one of the
major factor which nullify the increase in the salary. But still, the inflation is lower
than the increase in the salary. So, this can be seen as increase in the salary.
The National Commission on Labor (NCL) also emphasize on the same concept.
According to NCL, industrial relations affect not merely the interests of the two
participants- labor and management, but also the economic and social goals to
which the State addresses itself. To regulate these relations in socially desirable
channels is a function, which the State is in the best position to perform In fact,
industrial relation encompasses all such factors that influence behaviour of people
at work. A few such important factors are below:
In fact, industrial relation encompasses all such factors that influence behaviour of
people at work. A few such important factors are below:
 Characters
It aims to study the role of workers unions and employers€ ™ federations officials,
shop stewards, industrial relations officers/ manager, mediator/conciliators /
arbitrator, judges of labor court, tribunal etc.

Institution
It includes government, employers, trade unions, union federations or associations,
government bodies, labor courts, tribunals and other organizations which have
direct or indirect impact on the industrial relations systems.

Methods
Methods focus on collective bargaining, workers participation in the industrial
relations schemes, discipline procedure, grievance redressal machinery, dispute
settlements machinery working of closed shops, union reorganization,
organizations of protests through methods like revisions of existing rules,
regulations, policies, procedures, hearing of labor courts, tribunals etc.

Contents
It includes matter pertaining to employment conditions like pay, hours of works,
leave with wages, health, and safety disciplinary actions, lay-off, dismissals
retirements etc., laws relating to such activities, regulations governing labor
welfare, social security, industrial relations, issues concerning with workers
participation in management, collective bargaining, etc

Importance of Industrial Relations

1. Increased Productivity: With amicable industrial relations both the workers and
managers continue to work on their respective position and contribute towards
the overall productivity of the firm. Thus, IR ensures the continuity of production.
2. Reduced Industrial Disputes: An effective IR helps in the reduction of industrial
disputes as both the management and the workers maintain harmonious
relations with each other and work in unison towards the accomplishment of
production objective.
3. Increased Morale: The peaceful industrial relations boost the morale level of the
employees as they feel that their interest coincides with that of the employer’s,
and their efforts will result in the overall profitability of the firm.
4. Minimization of Wastage: A good IR ensures reduced wastage as the resources –
Man, Machinery, Material are fully utilized and are effectively contributing
towards the overall productivity of the firm.

Thus, an effective IR is required to ensure higher production at less cost and

increased profits. It covers the system, rules, and procedures to protect the interest
of the workmen and the employers and to regulate the behavior of the employer i.e.
the way he treats his workmen

Approaches To IR

The scenario of Industrial Relations(IR) is perceived differently by different

people. For some, Industrial Relations is related to class conflict, others perceive it
in terms of mutual co-operation and still others understand it in terms of competing
interests of various groups. HR managers are expected to understand these varying
approaches because they provide the theoretical underpinnings for much of the role
of HRM.

The three popular approaches to Industrial Relations are Unitary approach,

pluralistic approach, and Marxist approach.

Unitary Approach

Under unitary approach, Industrial Relations is grounded in mutual co-operation,

individual treatment, team-work and shared goals. Work place conflict is seen as a
temporary aberration, resulting from poor management, from employees who do
not mix well with the organization’s culture. Unions co-operate with the
management and the management’s right to manage is accepted because there is no
‘we-they’ feeling. The underlying assumption is that everyone benefits when the
focus is on common interest and promotion of harmony. Conflict in the form of
strikes is not only regarded as unnecessary but destructive.

Advocates of the unitary approach emphasize on a reactive Industrial Relations

strategy. They seek direct negotiations with employees. Participation of
government, tribunals and unions are not sought or are seen as being necessary for
achieving harmonious employee relations.

The unitary approach is being criticized as a tool for seducing employees away
from unionism and socialism. It is also criticized as manipulative and exploitative.

Pluralistic Approach

The pluralistic approach totally departs from the unitary approach. The pluralistic
approach perceives:

1. Organizations as coalitions of competing interests, where the management’s role

is to mediate amongst the different interest groups.

2. Trade unions as legitimate representatives of employee interests.

3. Stability in Industrial Relations as the product of concessions and compromises

between management and unions

Legitimacy of the management’s authority is not automatically accepted. Conflict

between the management and workers is understood as inevitable and, in fact, is
viewed as conducive for innovation and growth. Employees join unions to protect
their interests and influence decision-making by the management.
Unions thus balance the power between the management and employees. In the
pluralistic approach, therefore, a strong union is not only desirable but necessary.
Similarly, society’s interests are protected by state intervention through legislation
and industrial tribunals which provide orderly process for regulation and resolution
of conflict.

The theories on pluralism were evolved in the mid-sixties and early seventies when
England witnessed a resurgence of industrial conflicts. However, the recent
theories of pluralism emanated from British scholars, and in particular from
Flanders and Fox. According to pluralists, industrial conflict is inevitable and it
needs to be contained within the social mechanism of collective bargaining,
conciliation and arbitration.

Marxist Approach

Marxists, like the pluralists, regard conflict between employers and employees as
inevitable. However, pluralists believe that the conflict is inevitable in all
organizations. Marxists see it as a product of the capitalist society.

Trade unions are seen both as labour reaction to exploitation by capital, as well as
a weapon to bring about a revolutionary social change. Concerns with wage-related
disputes are secondary. Trade unions focus on improving the position of workers
within the capitalist system and not to overthrow. For the Marxists, all strikes are
political.

Besides, Marxists regard state intervention via legislation and the creation of
industrial tribunals as supporting management’s interest rather than ensuring a
balance between the competing groups. This view is in contrast to the belief of the
pluralists who argue that state intervention is necessary to protect the overall
interest of society.

To Marxists, the pluralist approach is supportive of capitalism, the unitary

approach is anathema. Consequently, enterprise bargaining, employee
participation, co-operative work culture, and the like which help usher in
cordial Industrial Relations are not acceptable to Marxists. Such initiatives are
regarded as nothing more than sophisticated management techniques designed to
reinforce management control and the continuation of the capitalist system.