Professional Documents
Culture Documents
Historical Background Meaning Definition Nature Objectives Scope Importance Parties To Industrial Relation Approaches
Historical Background Meaning Definition Nature Objectives Scope Importance Parties To Industrial Relation Approaches
Content …
Historical Background
Meaning
Definition
Nature
Objectives
Scope
Importance
Approaches
History
Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labor markets and large-scale industrial
organizations with thousands of wage workers. As society wrestled with these massive
economic and social changes, labor 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 as a middle ground
between classical economics and Marxism.
The relation between workers and management have undergone Himalayan changes in
our country there had been a system of king and his subjects, all should
work to improve the coffers of the king. Later Zamindars came and
workers were at their mercy – some time bonded also, later with the formation of
East India company and British Rule a heart less Hire and fire system was established
Industrial workers were no man’s child neither the employers or government cared
for them, there were no union also. Gradually enlightened leaders came in
like, Gokale, MK Gandhi Roy, Tilak etc felt the need for workers union.
Their relentless efforts forced both governments and the employers to
think of workers lot small u n i o n s w e r e f o r m e d , g o v e r n m e n t e n a c t e d
r u l e s l i k e ‘ T r a d e u n i o n A c t 1 9 2 6 . I n d u s t r i a l disputes Act etc.
Growing prosperity
Rising wages
Education
Greater mobility
By “relations” we mean “the relationships that exist within the boundary wall of
the industry between the employer and his workmen.”
The term Industrial relations are basically the interactions between employers,
employees and the government, and the institutions and associations.
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
“The term Industrial relations explains the relationship between employees and
management which stem directly or indirectly from union-employer relationship”–
sV. Agnihotri.
“Industrial relations are broadly concerned with bargaining between employers
and trade union on wages and other terms of employment. The day-to-day relations
within a plant also constitute one of the important elements and impinge on the broader
aspects of industrial relations” – C.B Kumar
“Industrial relation is an art of living together for the purpose of production” –
J.Henry
“The subject of industrial relations deal with certain regulated and
institutionalized relationship in industry” – Allan Flanders.
“The field of industrial relations include the study of workers and their trade
unions, management, employers’ association and state institutions concerned with the
regulation of employment” – H.A Clegg
“Industrial relations is a developing and dynamic concept and does not limit itself
merely to the complex of relations between the unions and management, but also refers
to the general web of relationships normally obtaining between employees-a web much
more complex than the simple concept of labor-capital conflict.” kapoor
ACC. to ILO definition “Industrial relations deals with either the relationships
between the state and employers’ and workers’ organizations or the relations between
the occupational organizations themselves.”
Nature
Employer-Employer
Employer-Employee
Employee-Employee
It exists within the boundary wall of the Industry. exist in both the organized or
unorganized sectors of industry.
It is a web of rules formed by the govt., and business community and labour.
Conflict Solving- From the earliest phase of industrialization from which the
workers formerly working with their own tools entered into power driven factories,
owned by owners: to minimization of breakdown due to industrial conflicts of later
state and further to industrial peace.
Multi- Dimensional- Industrial relation do not function in a vacuum but multi-
dimensional in nature and are conditioned with three determinants (i) Institutional
factors (ii) Economic factors (iii) Technological Factors.
Institutional factors are included items such as state policy, labour laws,
voluntary codes, collective agreements, labourers’ unions and employers’
organisation, social institution like the community, caste, joint family, creed,
system of beliefs, etc, attitudes of work, systems of power status, relative
nearness to the centers of power; motivation and influence and industrial
relations.
Economic factors are included economic organisation (socialist, capitalist,
communist, individual ownership, company ownership, government ownership)
power of labour and employers, the nature and composition of the labour force
and the sources of supply and demand in the labour market.
Objectives
Importance
Maintenance of harmonious industrials relations is on vital importance for the survival
and growth of the industrials enterprise. Good industrial relations result in increased
efficiency and hence prosperity, reduced turnover and other tangible benefits to the
organization. The significance of industrial relations can be summarized as below:
10. 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.
11. 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. 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.
12. 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.
Scope
The cordial and healthy labour management relations could be brought in-
By safeguarding the interest of the workers;
By collective bargaining.
1) Workers and their unions, the intelligence level knowledge of workers, back-
ground of worker leaders, real or bogus their linkage with political
unions, are to be considered for the effective relations.
Approaches
Approaches to Industrial Relations
Industrial conflicts are the results of several socio-economic, psychological and political
factors. Various lines of thoughts have been expressed and approaches used to explain
his complex phenomenon. One observer has stated, “An economist tries to interpret
industrial conflict in terms of impersonal markets forces and laws of supply demand. To
a politician, industrial conflict is a war of different ideologies – perhaps a class-war. To a
psychologist, industrial conflict means the conflicting interests, aspirations, goals,
motives and perceptions of different groups of individuals, operating within and reacting
to a given socio-economic and political environment”.
Psychological approach
According to psychologists, problems of industrial relations have their origin in the
perceptions of the management, unions and rank and file workers. These perceptions
may be the perceptions of persons, of situations or of issues involved in the conflict. The
perceptions of situations and issues differ because the same position may appear
entirely different to different parties. The perceptions of unions and of the management
of the same issues may be widely different and, hence, clashes and may arise between
the two parties. Other factors also influence perception and may bring about clashes.
The reasons of strained industrial relations between the employers and the
employees can be understood by studying differences in the perception of issues,
situations and persons between the management groups and labour groups.
Sociological approach
Industry is a social world in miniature. The management goals, workers’ attitudes,
perception of change in industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-symbols, rationality,
acceptance or resistance to change, tolerance etc. Industry is, thus inseparable from
the society in which it functions. Through the main function of an industry is economic,
its social consequences are also important such as urbanization, social mobility,
housing and transport problem in industrial areas, disintegration of family structure,
stress and strain, etc. As industries develop, a new industrial-cum-social pattern
emerges, which provides general new relationships, institutions and behavioural pattern
and new techniques of handling human resources. These do influence the development
of industrial relations.
Through tension is more direct in work place; gradually it extends to the whole industry
and sometimes affects the entire economy of the country. Therefore, the management
must realize that efforts are made to set right the situation. Services of specialists in
Behavioral Sciences (namely, psychologists, industrial engineers, human relations
expert and personnel managers) are used to deal with such related problems.
Assistance is also taken from economists, anthropologists, psychiatrists, pedagogists,
tec. In resolving conflicts, understanding of human behavior – both individual and
groups – is a pre-requisite for the employers, the union leaders and the government –
more so for the management. Conflicts cannot be resolved unless the management
must learn and know what the basic what the basic needs of men are and how they can
be motivated to work effectively.
Gandhian approach
This approach is based on his fundamental principles of truth and non violence . These
principles evolved the concept of non co-operations and trustees. Where conflict exists
it should be resolved by non co-operations & non violence .
If they have to organize a strike, trade unions should seek by bailout authority
from all the workers, but in remain peaceful and use non violent methods.
It has now been increasingly recognized that much can be gained by the managers and
the worker, if they understand and apply the techniques of human relations approaches
to industrial relations. The workers are likely to attain greater job satisfaction, develop
greater involvement in their work and achieve a measure of identification of their
objectives with the objectives of the organization; the manager, on their part, would
develop greater insight and effectiveness in their work.
Indiscipline;
Lack of human relations skill on the part of supervisors and other managers;
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;
Thus, while problem of human relations are personal in character and are related to the
behavior of individuals where moral and social element predominate, the term ‘industrial
relations’ is comprehensive covering human relations and the relations between the
employers and workers in an organization as well as matters regulated by law or by
specific collective agreement arrived at between trade unions and the management.
(2) Several acts are enacted by parliament both before and after
i n d e p e n d e n c e which were focusing on workers interests, welfare health etc. The
‘Tric Act’ Factory, Act. Industrial Dispute Act; Trade union Act gives major direction to
achieve the constitutional directives.
(3) Besides this, wages Act 1948, Bonus Act 1965, Gravidity Act
1 9 7 2 , E q u a l remuneration Act 1975, are some of the acts in the above direction.
This did not find well with unions but some unions have arranged for deduction
of their subscription through employers pay counter to some extent the check of system
is working. Causes of industrial unrest in India can be classified mainly under four
heads they are
1) Financial Aspects
a) Demand for increase of wages, salaries and other perks. workers demand goes on
increasing with the increase in cost of living
b) Demand for more perks, and fringe benefits. Issue of bonus also has become a
contentious one, even though Bonus Act has come fixing minimum
r a t e payable as 81/3% of their total salary in spite of profit or loss incurred by the
industry
.c) Incentives festivals allowances, concessions etc requires a hike every now and then,
workers compare these benefits with other industries and demand them –without
comparing the capacity of the industry where they are working.
c) More facilities like free meals free group travel etc are sought every now and then
3) Administrators Causes
a) Non implementation of agreements awards and other local settlements – with full
sprit
c) Attempt to weaken existing trade unions and trying to foist fake unions
Text Question
1. What is industrial relation? Explain the objective of Industrial relation? Bring out
the significance of industrial relations?
4. Explain the role of the Government, Employer and the Trade Union in
maintaining sooth industrial relations?