INDUSTRIAL RELATIONS

History

Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labour markets and large-scale industrial
organizations with thousands of wage workers.[15] As society wrestled with these massive
economic and social changes, labour problems arose. Low wages, long working hours,
monotonous and dangerous work, and abusive supervisory practices led to high employee
turnover, violent strikes, and the threat of social instability. Intellectually, industrial relations
was formed at the end of the 19th century
Industrial relations got its roots in the industrial revolution and the spread of capitalism which
created the modern employment relationship by spawning free labour markets and large-scale
industrial organizations with thousands of wage workers. Kaufman, the Global Evolution of
Industrial Relations .As both societies wrestled with these massive economic and social
changes, labour problems arose. Low wages, long working hours, monotonous and
dangerous work, and abusive supervisory practices led to high employee turnover, violent
strikes, and the threat of social instability and due to confluence of these event and ideas
associated with rise of democratic governments in the western world of the late nineteenth
and twentieth centuries. It emerged from both negative and positive impulses

The negative aspect, industrial relations was a reaction against deplorable working condition
and with unrepressed profit making and employee clout in the nine teeth century and twentieth
century capitalism and this led to the deplorable situations a conflict between capital and
labour and hardship for employee of that time

So we come to the conclusion that industrial relation was part of the reform wing. Industrial
relations arose from the conviction that cordial relationship between workers and employer
could be improvised through a combination of scientific discovery, education, legal reform…..

Current situation
Therefore, the maintenance of a good human relationship is a must in today business
environment, because in case of its absence the organizational structure may crumble.
Employees constitute the most valuable assets of any organization. Any neglect of the
important factor is likely to result in increased cost of production in term of wage and salaries,
benefits and services; working conditions, increased labour turn-over, absenteeism,
indiscipline and cleavages, strikes and transfer on the ground of discontent and the like,
besides deterioration in the quality of the goods produced and strained relations between
labour and 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.
“Industrial relationship is about the relationship between an employee and management.
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).
What is Indu str ial Rela t ion s and wha t does it mean?

Let’s break down the concept:

“Industry”: Industry refers directly to productivity – when one or many individuals

are engaged in a productive task we call those people “industrious”.

“Relations”: In the context of “Industrial relations”, the word refers to any

relationship that exists within a productive sphere between an employer and his
employees and the union that represents them.

Industrial Relations: Industrial relations then refers to the relationship between

employers and employees.

This needs to be a good relationship, the divisions need to be working together

as efficiently as possible, in order to maximize economic gain and the potential
for industrial growth.

In other words – without cooperation between these two divisions (employer and
employee) – industrial progress and economic gain would grind to a halt.

Furthermore – the relationship between employer and employee may be directly

or indirectly influenced by the union representing the workers.

Therefore – Industrial relations are essentially the interactions and relationships

between employers, employees and the government, and the institutions and
associations through which such interactions are mediated.

While Industrial Relations used to refer broadly to the relationships between

employer and employees and as such encompassed functions such as HR
Management, as well as union-management, the term has morphed and become
more specific.

It is now referring only to issues of trade-unionism and labour-management

relations while HR Management has become a separate but still fundamental
function dealing with non-union employment relationships and company policy.
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.
Features of Industrial Relations:

1. Industrial relations are the relations between two parties connected with industrial /
manufacturing activity, namely employer and employees. Such relations are the
outcome of the employment relationship in Industry.
2. The concept of industrial relations is complex and multi- dimensional. It is also a
dynamic and developing concept.
3. In the olden days, industrial relations were cordial and peaceful. However, at present,
they are not so due to increase in the number of industrial workers, growth of trade
unions, growing demands of workers etc.
4. Industrial relations do not function in a vacuum. The attitude and approaches of•
employers, employees and trade unions are directly related ‘to, industrial relations.
5. Industrial relations lead to “industrial peace” or “industrial unrest”. Both terms are used
in relation to industrial relations. Cordial industrial , relations bring industrial peace i.e.
a period when industrial disputes, strikes, lock-outs, etc. are absent and production
activity is being conducted in a regular and continuous manner.
6. Cordial industrial relations are always beneficial to all concerned parties whereas
absences of such relations are harmful to all parties and even to the national economy.
Need for Industrial Relations
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.
W hat is The Role of Industrial Relatio ns?
Good industrial relations form the backbone of our modern industrial society.

Without the proper structures and processes in place, modern industrial relations
would crumble as we know it.

But what does “industrial relations” really mean, and why couldn’t our current
economic or industrial construct function without it?

NEED HELP W ITH LABOUR RELATIONS

What are the Objectives of In du str ia l Rela tion s and Why are
Ind ustr ia l Re lat ion s imp ortan t?

1. Continu ity of Pr oduction

The most vital function of industrial relations is ensuring uninterrupted production.

This means that all positions of employment, from managers to workers, are
always filled so that full-scale production is ongoing.

I also means a steady income stream for all involved.

Industries rely on one another.

The goals of industrial relations then is to ensure that there is never a breakdown
in communication or degradation of an industrial relationship leading to a stall in
productivity and thus a stall in economic gain.

This leads us to the second reason good industrial relations are vital.

2. Min imize the occurrence of Ind ustria l D ispu tes

Good industrial relations aim to minimize, if not eradicate, the occurrence of

strikes, go-slows, lockouts and grievances which hamper industrial activity.

3. Min imize Wastage

Good industrial relations help increase and ensure continuous production.

Good industrial relations thus help minimize wastage of labour and material
resources.
What Are the Different Theories of Industrial Relations?
Industrial relations describes the complex, ever-changing relationship between
industry management and its employees. There are several mainstream theories of
industrial relations, each casts employee unions and business management with
differing responsibilities and functions.

There are four primary theories of industrial relations: unitarist, pluralist, Marxist and
radical. These theories emphasize (or dismiss) different elements of the industrial
relations process and/or function, depending on the values and standards venerated
by the philosophy.

Unitarist Theory

The unitarist theory of industrial relations emphasizes the co-dependency of employers and
employees. To a unitarist, an organization is an integrated, friendly and collaborative whole.

Unitarists do not favor employee unions. They believe that loyalty to such an organization
would detract from employee loyalty to a company (disrupting the bond between employer
and employees).
Pluralist Theory

Pluralist theory emphasizes the representative function of management and trade unions, and
it reinforces the value (and legitimacy) of collective bargaining.

Pluralists recognize organizations within management and within unions as legitimate. They
believe that management's primary function is to coordinate, communicate and persuade,
rather than control or demand.

Radical Theory

Not to be confused with Marxist theory, radical theory sees industrial relations as a necessary
(but not ideal) result of employees protecting themselves from powerful big-business.

Radicals believe that profit-hungry corporations have no regard (aside from legal obligations)
for their employees, and are willing to profit off of them at any available opportunity.
Marxist Theory

The Marxist theory of industrial relations claims that capitalism breeds corruption and greed,
leaving the employee to suffer while corporations rake in profits.

Marxists claim that institutions would be far better employers if run as state organizations,
while compensation would be standardized to promote a co-operative, non-competitive work
environment.
Industrial Relations: Objectives and Participants in Industrial Relations

The relations arising from the employment of workers are not distinct from human relations
that arise on a business enterprise/ organization. Industrial relations is that aspect of
management which deals manpower of the establishment whether operators, skilled workers
or managerial staff.

Cordial and peaceful industrial relations between the employer and employee are necessary
for improving the productivity and thus the economic growth of the country. The term
management implies getting the things done with the help of other people. Nobody can deny
that people constitute a major element of an industrial organization.

The good results of an enterprise always reflect the notable performance of all
concerned i.e. entire staff of the organization. The term industrial relations have been
widened in its meaning with industrial developments after World War-ll and now it
implies employer- employees unions and government relationship in industry.

Objectives of Industrial Relations:

(i) To create healthy relation between employees and employers.

(ii) To minimize industrial disputes.

(iii) To generate harmonious relations among all concerned with production process.

(iv) To improve the productivity of workers.

(v) To provide workers their appropriate position by considering them partners and associating
them with management process.

(vi) To provide the workers their due profit share, improve their working conditions and thereby
eliminating the chances of strikes and lockout etc.

Participants in Industrial Relations:

The main participants in industrial relations are:

(i) Employers

(ii) Employees/Workers.

(iii) Government.

Employers have their associations to deal with labour problems and their unions in a collective
way Workers are represented by their trade unions. Government tries to regulate the relations
between the two i.e. employees and employers by implementing labour laws.

These three variables interact with each other within environment which prevails in industrial
sector at any time. Good industrial relations are the result of.

(i) Healthy labour and management relations.

(ii) Industrial peace and settlement of all disputes in such a way that there are no labour
problems like strikes or lockouts.

(iii) By labour participation in management.

T he Role of Go vern men t in Ind ustr ia l Re lat io ns

What R o le does the Go vern ment rea lly p lay in Indu str ial Rela t ion s?

My word is law:
The industrial relations processes, and the relationships between employees and
employers, are influenced by the government and its agencies through the
government’s construction, passing and implementation of relevant industrial
relations law, policies, regulations etc.

The legal framework within which Industrial Relations must function is determined
by the government and/or its agencies, possibly in consultation with other role -
players in the industrial relations processes.

These includes things such as trade union representatives, employers and select
employees.
The legal framework can be the legal limitations imposed on an
employer/employee relationship.

For example such as the amount of hours an employee is allowed to legally work
per week and how much an employer is obligated to pay an employee for a certain
amount of work.

In South Africa, for example, the BCEA (Basic Conditions of Employment Act) can
be seen as a governmental contribution to the governing of the relationship
between employers and employees, and can as such be considered the
government’s contribution to guiding the processes of industrial relations.

Judge and jury:

The government can also become directly or indirectly involved in the industrial
relations processes when boundaries are overstepped or negotiations go awry.

The government could become involved in, for example, settling an industrial
relations dispute in court, or adjusting or amending a policy which has proven
itself flawed, outdated or newly irrelevant following the outcome of a certain case
or set of negotiations.

How does the go vern men t benef it fr om In du str ia l Re lat io ns?

Basically, the government benefits from Industrial Relations in that a safe working
environment promotes employee and employer satisfaction, which in turn h elps
maintain high employment rates which reflects well on the government and
directly addresses and influences issues such as poverty and crime.

Industrial Relations in Society and what Role does it play

What ha s our Soc iety at large go t to do with In dustr ia l Re latio ns?

Society in general benefits from Industrial Relations by achieving the following

objectives:

1 – A Living Wage
Industrial Relations forms part of the process to ensure that each and every
employed individual in our country is making a living wage.

The minimum wage crisis should be of concern to every humanitarian in our

society.

Not only the poor and/or unskilled benefit from a living wage – so do all industries
and enterprises at large.

If all our manual labourers earn a living wage they will have more capital to cater
to their basic needs and wants.

This will essentially ensure that people have enough money to spend in order to
satisfy their basic human needs benefits everybody, albeit indirectly at times,
because it means more money plugged back into our economy.

2 – Equality of Opportunity
Industrial Relations processes aim to achieve an equality of opportunity within our
country’s workplaces.

Anybody who is not a heterosexual, cisgender, Caucasian, able -bodied male

stands to benefit from strides taken toward equality of opportunity.

Those who campaign, through Industrial Relations channels, for equality of

opportunity are campaigning for equal treatment and opportunity in the workplace
free from the effects of preference or prejudice and unhampered by any artificial
barriers (read: “glass ceiling”).

3 – Rights of the Individual

The Industrial Relations processes and channels that are in place help protect
the rights of the individual.

This means that, even if you are not currently employed, the IR processes are
campaigning on your behalf, already fighting for your rights to be
respected, should you ever enter an industry.

4 – Work Life Balance

A balance between work and your personal life is extremely important to keep
yourself up to high standards.

Industrial relations aims specifically to create a balance between being highly

productive and enjoy the job you are in to the maximum.

This will be beneficial to both the employee and employer in the long term.
When every business/employee relationship are balanced optimally, it would have
good consequences for the society in general.

Conclusion

Absolutely everybody should know the who, what, when, where, and why of labour
relations and how industrial relations management works.

Knowledge is power, and the above should have adequately equipped you to
identify and address breakdowns in communication and the subsequent halt in
production or lapse in productivity.

Whether you are an employee, an employer or a casual observer, it is important

that you know who to contact in the event of a breakdown in communication or
unfair treatment in the workplace.

Open lines of communication are vital to ongoing economic and industrial growth;
we hope this guide to navigating the murky waters of industrial relations has
taught you exactly who you’ve got in your corner, and who to c ontact in a time of
crisis.

Industrial relations exist to serve and protect everybody involved – from the
employee, to the owner, to the public at large and all the way through to the
government.

If the lines of communication are open, and industrial relat ions are undertaken,
everybody wins.
FUNCTIONS AND CODE OF INDUSTRIAL RELATIONS

FUNCTIONS OF INDUSTRIAL RELATIONS

 Communication is to be established between workers and the management in order to

bridge the traditional gulf between the two.
 To establish a support between mangers and the managed
 To ensure creative contribution of trade unions to avoid industrial conflicts, to
safeguard the interests of workers on the one hand and management on the other
hand, to avoid unhealthily, unethical atmosphere in an industry
 To lay down such considerations this may promote understanding, creativity and co-
cooperativeness to raise industrial productivity and to ensure better workers
participation

CODE OF INDUSTRIAL RELATIONS

 The attitude of management towards trade unions and employees should be positive
 The attitude of employees and union towards management should be positive
 The attitude of employees towards trade unions should positive
 There would be difference of opinions among trade unions, employees and
management
 Management need not consult the trade unions and employees regarding disciplinary
cases
 Management should not influence employees regarding joining or withdrawing from
unions
 Management should not encourage the workers for forming rival unions
 Trade unions should not involve in managerial activities which do not affect the
employees
 Issues in the collective bargaining should be disposed of at the earliest
 All employees should accept attend the training programmes as and when they are
asked to do so

CONDITIONS FOR CONGENIAL INDUSTRIAL RELATIONS

1. Existence of strong, well organized and democratic employees unions

2. Existence of sound and organized employers unions
3. Spirit of collective bargaining and willingness to resort to voluntary arbitration
4. Maintenance of industrial peace
Industrial Relation System (Classification)

An industrial relations system consists of the whole gamut of relationships between employees
and employees and employers which are managed by the means of conflict and cooperation.

A sound industrial relations system is one in which relationships between management and
employees (and their representatives) on the one hand, and between them and the State on
the other, are more harmonious and cooperative than conflicting, and creates an environment
conducive to economic efficiency and the motivation, productivity and development of the
employee and generates employee loyalty and mutual trust.

Actors in the IR system: Three main parties are directly involved in industrial relations:
Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and
fire them. Management can also affect workers’ interests by exercising their right to relocate,
close or merge the factory or to introduce technological changes.
Employees: Workers seek to improve the terms and conditions of their employment. They
exchange views with management and voice their grievances. They also want to share
decision making powers of management. Workers generally unite to form unions against the
management and get support from these unions.
Government: The central and state government influences and regulates industrial relations
through laws, rules, agreements, awards of court ad the like. It also includes third parties and
labor and tribunal courts.

SCOPE: The concept of industrial relations has a very wide meaning and connotation. In the
narrow sense, it means that the employer, employee relationship confines itself to the
relationship that emerges out of the day to day association of the management and the labor.
In its wider sense, industrial relations include the relationship between an employee and an
employer in the course of the running of an industry and may project it to spheres, which may
transgress to the areas of quality control, marketing, price fixation and disposition of profits
among others.

The scope or industrial relations is quite vast. The main issues involved here include the
following:

1. Collective bargaining
2. Machinery for settlement of industrial disputes
3. Standing orders

1. Workers participation in management

2. Unfair labor practices
Ind ustr ia l Re lation fro m T he Emp loyee’s Perspective

How does “ Indu str ial Rela t ion s” ben efit the e mp lo yee?

Union Representatives
Trade and/or labour unions resist the exploitation of employees by employers
through equal bargaining power, and represent workers’ interests in the
employment relationship.
It is the union (rep), on behalf of the worker, who ensures that the employee
benefits from Industrial Relations and aim to secure the workers by helping them
to have:

 Better wages that is sustainable for the future of the employee.

 Improved working conditions so that the employee can be productive, safe
and happy.
 Mutual respect by ongoing conversation between the employer and their
employees to keep the work relationship healthy.
 The proper Training and Skills Development to keep up with trends in the
workplace so the employee will be able to progress within their career.

Union reps then ensure that the process of Industrial Relations benefits the
employee, and protects the interests of the employee during negotiations and
similar relations with the employer.

How do Union s he lp e mp lo yees bene fit f ro m Indu str ia l Re lat ion s?

1 – Collective Bargaining
Ever heard the saying “there’s strength in numbers”?

Labour unions represent the interests of a body of employees by means of a

united front.

This allows the employees’ voices to be heard more effectively than if employees
made the same requests or voiced the same concerns one by one in their
individual capacity.

Unions have the power to organize strikes, boycotts, go -slows, sit-ins and formal
protests in order to get the employers’ attention and urge them to consider matters
from the perspective of the employees that the trade unions represent.

2 – Employee Welfare
Unions look out for the best interests of their members.

Unionized workers, for example, earn higher wages than their non -unionized
counterparts, and they automatically have an intermediary who will step in for
them during negotiations with employers about work schedules, income, safety
etc.
Unions also exist in order to protect employees’ basic rights such as the right to
access healthcare and be protected from accident and injury in the workplace.

How does “ Indu str ial Rela t ion s” ben efit the e mp lo yer?

Union Reps
Trade and/or labour unions represent the employees in negotiations with the
employer.

Because the union rep represents the multitudinous voices of the employees, it
allows the employer to hear only one clear and concise argument on behalf of the
workers instead of having to field the same comments/concerns from hundreds of
employees who are all saying the same thing.

Union reps save the employer time and thus money in this way.

While the interest of the union rep lies with the worker; his/her existence
ultimately serves to benefit both parties; both employee and employer.

Union reps then ensure that the process of Industrial Relations benefits the
employee, and protects the interests of the employee during negotiations and
similar relations with the employer.

It also saves the employer man-hours and communication struggles by creating a

platform for two-way communication between a large group of employees and a
usually smaller group of employers.
How do Union s he lp e mp lo yers benefit f ro m Indu str ia l Re lat ion s?

1 – Collective Bargaining
A trade union represents the multitudinous voices of the employees and allows
the employers to hear a clear and concise message; namely, the demands or
concerns of the vast majority.

This streamlines conflict resolution and this is in the best interest of the employer.

While trade unions have the power to organize strikes, boycotts, go -slows, sit-ins
and formal protests in order to get the employers’ attention, they also have the
power to call them off as soon as an agreement has been reached.

This solves issues relating to vigilantism and individual employees who hold out
on returning to work or fulfilling their role in the production cycle even though a
respectable agreement between employer and employees has been reached.

Having set guidelines for conflict resolution serves both parties!

2 – Employee Welfare Watchdogs

Unions look out for the best interests of their members and said members
automatically have an intermediary who will step in for them during negotiations
with employers about work schedules, income, safety etc.
Unions also exist in order to protect employees’ basic rights such as the right to
access healthcare and be protected from accident and injury in the workplace.

Trade Unions therefor also help employers assess and meet their legal obligations
to their employees.

Employers know that, should any legislation change or new regulations be

instituted, they will be informed through the proper channels and they can
work with the trade unions to facilitate and convey to the employees any changes.
Importance of Industrial Relations

A healthy industrial relation is key to the success of an industry and economy. Their
significance may be discussed as under –

Uninterrupted production

 The most important benefit of industrial relations is that this ensures continuity of
production. This means, continuous employment for all employees who contribute to
production process, ie., from chief executive officer to floor workers to pantry boy. The
resources including row materials and time are fully utilized, resulting in the maximum
possible production. There is uninterrupted flow of income for all. Smooth running of
an industry is of vital importance for several other industries; to other industries if the
products are intermediaries or inputs; to exporters if these are export goods; to
consumers and workers, if these are goods of mass consumption.

Reduction in Industrial Disputes

 Good industrial relations reduce the industrial disputes. Disputes are reflections of the
failure of basic human urges or motivations to secure adequate satisfaction or
expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow
tactics, gherao and grievances are some of the reflections of industrial unrest which
do not spring up in an atmosphere of industrial peace. It helps promoting co-operation
and increasing production.

High morale

 Good industrial relations improve the morale of the employees.

Employees work with great zeal with the feeling in mind that the
interest of employer and employees is one and the same, i.e. to
increase production. 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.

Mental Revolution

 One of the main objects 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.
It is the business of leadership in the ranks of workers,
employees and Government to work out a new relationship in
consonance with a spirit of true democracy. 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 employer’s authority. It will naturally
have impact on production because they recognize the interest
of each other.
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.

Thus, it is evident that good industrial relations 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 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.
Problems Facing Industrial Relations

Industrial relations is the term that describes how the management and the employees of a
company interact with each other. Specifically, it is the relationship that exists between the
upper management of a small business and the staff that carries out the duties of the small
business. Because there is a divide between these two aspects of a business, problems also
arise when maintaining a relationship between management and staff.

Narrow Focus

In many businesses, an issue that arises out of industrial relations is a narrow focus by the
employees of the organization. An employee or staff member may only view the task at hand
that they have to perform to complete their job rather than viewing how the role the employee
plays benefits the organization as a whole. Many employees simply see their managers as
someone who tells them what to do rather than as a facilitator that can help the employee
achieve their own professional goals as well as bring the company to a point where it reaches
the goals of the business.

Inflexibility of Employer

When an employer is inflexible, this can stifle the creativity of employees. When employees
feel as if their creativity is being squashed or that their opinions do not matter, this can cause
strife between the employees and management of the business. When creativity is squashed,
this can cause the company innovation to lack, which can ultimately create an uncompetitive
position for the company in the marketplace. Employers that allow employees to participate in
running the company by allowing suggestions and feedback from the employees and even
empowering employees to take on more responsibility for the route the business takes,
typically enjoys a more successful business environment—internally and in the marketplace.

Division

Another issue that arises in industrial relations is an “us against them” mentality. Many
employees believe there is a great divide that exists between them and the management of
the company. This division between the two groups of a business can cause a myriad of issues
such as contract negotiation problems, strikes and the required intervention of trade and labor
unions. When management and employees can relate and communicate with each other, it
typically alleviates the problems, such as not being able to negotiate work contract agreements
or having to bring in the labor union to negotiate the terms and conditions between employees
and management.
Causes of Poor Employer-Employee Relations

1. Economic Causes:

Poor wages and poor working conditions are the main reasons for unhealthy relations among

management and labour. Unauthorized deductions from wages, lack of fringe benefits,

absence of promotional opportunities, dissatisfaction with job evaluation and performance

appraisal methods, faulty incentive schemes are other economic causes.

When employers deny equitable and fair remuneration and good working and living conditions

to the working class, trade unions agitate and industrial peace is disturbed. Inadequate

infrastructural facilities, worn-out plant and machinery, poor layout, unsatisfactory

maintenance and other physical and technical causes also contribute to industrial conflict.

2. Organisational Causes:

Faulty communication system, dilution of supervision and command, non-recognition of trade

unions, unfair practices, violation of collective agreements and standing orders and labour

laws are the organisational causes of poor relations in industry.

3. Social Causes:

Uninteresting nature of work is the main social cause. Factory system and specialisation have

made worker a subordinate to the machine. Worker has lost sense of pride and satisfaction in

the job. Tensions and conflicts in society break up of joint family system, growing intolerance

have also led to poor employer-employee relations. Dissatisfaction with job and personal life

culminates into industrial conflicts.

4. Psychological Causes:

Lack of job security, poor organisational culture, non- recognition of merit and performance,

authoritative administration and poor interpersonal relations are the psychological reasons for

unsatisfactory employer- employee relations.

5. Political Causes:

Political nature of trade unions, multiple unions and inter-union rivalry weaken trade union

movement. In the absence of strong and responsible trade unions, collective bargaining

becomes ineffective. The union’s status is reduced to a mere strike committee.

The outsiders who become union leaders by making wild promises to workers make excessive

demands on employers. When employers do not accept their demands conflicts arise spoiling

the employer-employee relations climate in the country.

Poor employer-employee relations are harmful for all. Industrial conflicts reduce productivity

of labour. Quantity and quality of work suffer and costs rise. Industrial discipline breaks down

and labour turnover and absenteeism increase. Working class suffers due to industrial decline.

They find it very difficult to get improved wages and working conditions. Many of them loose

jobs and promotions.

They get frustrated and demoralised. Employers face resistance to changes in technology and
organisational structure. Industry, economy and society are interdependent. Therefore,
industrial strike has multiplier effect on the economy and society. Social tensions and law and
order problems, drinking and gambling and other social evils tend to rise in an atmosphere of
poor employer-employee relations.

Hrm industrial-relations

1. 1. HUMAN RESOURCE MANAGEMENT CHAPTER PRESENTATION ON:

INDUSTRIALINDUSTRIAL RELATIONSRELATIONS
2. 2. CONCEPT • Industrial Relations (IR) refers to a dynamic and complex relationship
between employers and employees which is a web of much more complex than the
simple concept of handling labour-capital conflict. •IR also referred as ‘Employee
Relations’ or ‘Human Relations’. •The concepts that have become the main sources of
 Industrial Relations strategy formulation for progressive organization are:-
•Productivity •Competitiveness •Job-hopping •Downsizing •Union-free organization.
3. 3. Some Definitions….. • According to Encyclopedia Britannica IR is defined as, • “ The
concept of industrial relations has been extended to denote the relations of the State
with employers,workers,and their organisations.It includes individual relations & joint
consultation between employers and workers at their places of work; collective
relations between employers & trade unions; & the part played by the State in
regulating these realtions.” • According to Armstrong Industrial Relations are ….. •
“Concerned with the system & procedures used by unions & employes to determine
the reward for effort & other conditions of employment,to protect the interests of the
employed & their employees,& to regulate the ways in which employers treat their
employees.”
4. 4. OBJECTIVES • To establish harmonious relations between operatives &
management. • To avoid industrial conflicts. • To raise productivity in the organization
• To avoid governments interference in the working of the relationship between
employees & employer. • To curb employee turnover & absenteeism
5. 5. CONCEPT OF INDUSTRIAL DISPUTE • “Industrial Dispute means any dispute or
differences between employees and employers & employers & workmen or between
workmen or workmen, which is connected with the employment or non-employment or
the terms of employment or with the conditions of labour of any person.” • In general
terms it can be said that it is an expression of diffrences over some issues of interest
between two or more parties.
6. 6. CAUSES OF INDUSTRIAL DISPUTES 1).ECONOMIC FACTORS: • Wages •
Incentives • Benefits • Working conditions 2).MANAGEMENT PRACTICES: • Unfairs
Labour Practices • Ineffective Supervision • Violation of Acceptable Norms 3).TRADE
UNION PRACTICES: • Union Rivalry • Non-cooperative approach 4).LEGAL &
POLITICAL FACTORS: • Multiplicity of Labour Law • Political Interference
7. 7. Approaches to Industrial Relation The scenario of industrial relation is perceived
differently by different people. For some IR is •Class conflict •Mutual co-operation
•Competing interests of various groups.
8. 8. Approaches to Industrial Relation Unitary Approach Marxist Approach Pluralistic
Approach Industrial Relation
9. 9. The three popular Approaches to IR are : - • Unitary approach :- IR is grounded in
mutual co-operation, individual treatment, team work and shared goals. • Everyone
benefits when the focus is on common interest and promotion of harmony. • The unitary
approach is being criticized as a tool for seducing employee away from unionism &
socialism. It is criticized as manipulative & exploitative
10. 10. • Pluralistic Approach:- – It sees organizations as coalitions of competing interests,
where the management’s role is to mediate amongst the different interest groups –
Trade unions as legitimate representatives of employee interest. – A strong union is
not only desirable but necessary.
11. 11. • Marxist Approach:- • In Marxist approach the conflict between employers and
employees are inevitable .Hence Marxists sees it as a product of the capitalist society.
• Marxist approach focuses on the type of society in which an organizational function.

Scope of Industrial Relations

The concept of industrial relations has a very wide meaning and connotation. In the narrow
sense, it means that the employer, employee relationship confines itself to the relationship
that emerges out of the day to day association of the management and the labor. In its wider
sense, industrial relations include the relationship between an employee and an employer in
the course of the running of an industry and may project it to spheres, which may transgress
to the areas of quality control, marketing, price fixation and disposition of profits among others.
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 S CO P E O F I NDUS T R IA L RE L A T I O NS IS Q U ITE V A S T. T HE MA I N

ISSUES INVOLVED HERE INCLU DE T HE FOLLOW ING:
– Collective bargaining.

– Machinery for settlement of industrial disputes.

– Standing orders.

– Workers participation in management, and.

– Unfair labor practices.

Definition and Scope of industrial relations:
The ultimate aim of any human activity at the socio-economic level should be the minimal use
of available resources in achieving the maximum economic and social results, i.e. to be
increasingly productive. The productivity of capital, machines, and resources other than
human resources can be improved in various ways. But improving the productivity of human
resources is a complex and onerous task, for the simple reason that “labor” stands for both an
individual human being and a group of individuals with different perceptions about productivity,
motivation and attitudes, and with different needs. In organizations, individuals do not operate
in isolation. They interact and react collectively to various issues in which management has
an interest, including productivity. Thus productivity improvement extends beyond the domain
of the management of workers and becomes a labor-management or industrial relations issue
to be negotiated, settled and implemented jointly by the management and the union.
Productivity improvement as an industrial relations issue thus acquires a greater significance
in all enterprises where the employees are organized.

“Industrial relations” broadly means the relations arising out of employment. In this broad
sense, it covers the area of personnel management or human resources management and
labor-management relations or labor relations. In its narrower sense, it refers only to the
relations between management and the unions. And in its popular usage, it refers only to
labor-management relations.

Industrial relations in organizations is the sum total of the management’s attitude to labor and
of labor’s attitude to management’s policies and practices that affect the interests of the
employees. Industrial relations are, basically, interactions between management and union(s).
They involve continuous dialogue between the two sides on various issues of common
interest; through such dialogues, the two sides shape each other’s attitudes. The approach,
methods, strategies, and techniques, etc., of management in achieving the desired objectives
vary from one organization to another. This is especially true with regard to productivity
improvement through industrial relations. It is, therefore, primarily the responsibility of
management to develop industrial relations with workers and the unions so as to promote
productivity on a continuing basis.
 The main aspects of industrial relations:

1. Promotion and development of healthy labor-management relations.

2. Maintenance of industrial peace and avoidance of industrial strife.
3. Development and growth of industrial democracy.
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