INDUSTRIAL RELATIONS – CONCEPT

In the pre-industrial society, agriculture was the major source of wealth. Production was
mainly based on crude farming tools. All the factors of production i.e. labour and capital
was tied up with land. Only those who had control over these three factors had
economic power.

Transformation started in the society, with the industrial revolution, from the latter half of
the 18th century, starting from Great Britain to India by the end of that century. The most
important change was that capital became the critical factor of production.
Industrialisation brought about drastic changes in the working methods and manpower
management relations in the workplace.

The technological advancements also led to the factory system and thereby to the
emergence of two distinct classes, viz, the capitalist class and the working class.
The capitalist class provided the important input of production – machinery, means of
production and premises and the workers supplied labour and were mainly untrained,
uneducated and unorganized.

The trends in the early stages of industrialization were:

 Loss of freedom – Unlike in previous domestic industries, working in factories

involved strict discipline and less freedom. The workers didn’t have much say in
matters like working conditions, rest intervals, holidays, wages etc.
 Unhygienic working conditions – Attention was not paid to the health and safety
of the workers and the working conditions were mostly unhygienic and unhealthy.
 Employment of children – There was exploitation of children due to economic
necessity and they also worked in unhygienic working conditions.

Apart from these changes, the outlook and philosophy of the employer also influenced
the industrial relations.

In the early 19th century, the doctrine of laissez faire was in vogue,

What Does Laissez Faire Mean?

The phrase is French and literally means "let do", but it broadly implies "let it be", or
"leave it alone."

In economics, laissez-faire means allowing industry to be free from state intervention,

especially restrictions in the form of tariffs and government monopolies. It is an
economic theory from the 18th century that is strongly opposed to any government
intervention in business affairs.
People who support a laissez faire system are against minimum wages, duties, and any
other trade restrictions. An economic doctrine that opposes governmental regulation of
or interference in commerce beyond the minimum necessary for a free-enterprise
system to operate according to its own economic laws.

The laissez faire slogan was popularised by Vincent de Gournay,in the 1750s. Gournay
was an ardent proponent of the removal of restrictions on trade and the deregulation of
industry and economic prosperity in France. Although Gournay left no written tracts on
his economic policy ideas, he had immense personal influence on the thinking of his
contemporaries, notably the physiocrats, who credit both the laissez-faire slogan and
doctrine to Gournay and strongly supported by Adam Smith and John Stuart Mill. Widely
accepted in the 19th century, laissez-faire assumed that the individual who pursues his
own desires contributes most successfully to society as a whole. The function of the
state is to maintain order and avoid interfering with individual initiative.

Important features of laissez faire:

(i) Freedom to Contract: - The parties to a contract were free to lay down terms
and conditions of contract without any intervention from third party. Normally
the weaker party i.e. the labourers have to accept the dictate of the stronger
party. Government or workers’ unions’ intervention was rigidly opposed.
(ii) The Dynamics of Market:- This doctrine believed that dynamics of market
revolves round economic forces. The forces of demand and supply that
operates in the market decides determine the price as well as the labour
market. Thus if the supply of labour exceeds demand the wages of workers
were low. Any interference regarding wages either from government or unions
was opposed.
(iii) The Pursuit of Self-Interest – This doctrine believed that pursuit of self
interest served the best interest of everyone. There interference by any other
party would adversely affect their interest.

In the late 19th century, the industrial relations system started shaping up, due to
new managerial techniques, work complications etc. The popularity of the
laissez-faire doctrine waned when it proved inadequate to deal with the social and
economic problems caused by industrialization.

Human Resources became an important factor of production. This led towards the
development of welfare of the workforce and good industrial relations.
INDUSTRIALIZATION:

The Industrial Revolution was a period from the 18th to the 19th century where major
changes in agriculture, manufacturing, mining, and transport had a profound effect on
the socioeconomic and cultural conditions starting in the United Kingdom, then
subsequently spreading throughout Europe, North America, and eventually the world.
The onset of the Industrial Revolution marked a major turning point in human history;
almost every aspect of daily life was eventually influenced in some way.

Starting in the later part of the 18th century there began a transition from manual labour
and draft-animal–based economy towards machine-based manufacturing.

The first Industrial Revolution, which began in the 18th century, merged into the Second
Industrial Revolution around 1850, when technological and economic progress gained
momentum.

Effects of Industrial Revolution:

The Industrial Revolution brought severe consequences to society. Factory owners,

needing cheap, unskilled labor, profited greatly by using children and women to run the
machines. By the age of 6, many children were already working 14 hours a day in
factories! These children had no free time to do anything else and earned low wages.
Some got sick and died because of the toxic fumes, while others were severely injured
and sometimes killed working at the dangerous machines in factories. Obviously, the
Industrial Revolution had both good and bad sides.

In terms of social structure, the Industrial Revolution witnessed the triumph of a middle
class of industrialists and businessmen over a landed class of nobility and gentry.

Ordinary working people found increased opportunities for employment in the new mills
and factories, but these were often under strict working conditions with long hours of
labour dominated by a pace set by machines. However, harsh working conditions were
prevalent long before the Industrial Revolution took place. Pre-industrial society was
very static and often cruel—child labour, dirty living conditions, and long working hours
were just as prevalent before the Industrial Revolution.

Factories and Urbanisation - Industrialisation led to the creation of the factory. The
factory system was largely responsible for the rise of the modern city, as large numbers
of workers migrated into the cities in search of employment in the factories. Some
industrialists themselves tried to improve factory and living conditions for their workers.
One of the earliest such reformers was Robesrt Owen.
Child labour - The Industrial Revolution led to a population increase, but the chance of
surviving childhood did not improve throughout the industrial revolution. Employers
could pay a child less than an adult which made child labour the labour of choice for
manufacturing in the early phases of the Industrial Revolution between the 18th and
19th centuries. Many children were forced to work in relatively bad conditions for much
lower pay than their elders. Child labour had existed before the Industrial Revolution,
but with the increase in population and education it became more visible.

The public outcry, especially among the upper and middle classes, helped stir change in
the young workers' welfare.

Housing - Living conditions during the Industrial Revolution varied from the splendour
of the homes of the owners to the squalor of the lives of the workers. Poor people lived
in very small houses in cramped streets. Disease was rampant. The Industrial
Revolution created a larger middle class of professionals such as lawyers and doctors.
The conditions for the poor improved over the course of the 19th century because of
government and local plans which led to cities becoming cleaner places.

Luddites - The transition to industrialisation was not without difficulty. A group of

English workers known as Luddites formed to protest against industrialisation and
sometimes sabotaged factories.

Unrest continued in other sectors as they industrialised, such as agricultural labourers in

the 1830s. Threshing machines were a particular target, and rick burning was a popular
activity. However the riots led to the first formation of trade unions, and further pressure
for reform.

Organisation of labour - The Industrial Revolution concentrated labour into mills,

factories and mines, thus facilitating the organisation of combinations or trade unions to
help advance the interests of working people. The power of a union could demand
better terms by withdrawing all labour and causing a consequent cessation of
production. Employers had to decide between giving in to the union demands at a cost
to themselves or suffer the cost of the lost production. Skilled workers were hard to
replace, and these were the first groups to successfully advance their conditions
through this kind of bargaining.

The main method the unions used to effect change was strike action. Many strikes were
painful events for both sides, the unions and the management. I

Working people also formed friendly societies and co-operative societies as mutual
support groups against times of economic hardship. Enlightened industrialists, such as
Robert Owen also supported these organisations to improve the conditions of the
working class.
Standards of living

The change of living conditions during the industrial revolution has been very
controversial, but the general consensus was that the bulk of the population, that was
at the bottom of the social ladder, suffered severe reductions in their living standards.
But during the period 1813-1913 there was a significant increase in worker wages.

Other changes due to indusrialisation

The application of steam power to the industrial processes of printing supported a

massive expansion of newspaper and popular book publishing, which reinforced rising
literacy and demands for mass political participation.

The growth of modern industry from the late 18th century onward led to massive
urbanization and the rise of new great cities, first in Europe and then in other regions, as
new opportunities brought huge numbers of migrants from rural communities into urban
areas.

Impact of Industrial Revolution

1. Elimination of physical labour.- Due to increase in sophisticated technology,

machine replaced human labour in performing many heavy and strenuous tasks.
This had both favourable and unfavourable influence on the level of employment.
The workers were freed from most of the heavier and unpleasant tasks and the
working conditions in the plants also improved. But since fewer people were
required to perform due to increased automation, it also resulted in increased
employment .

2. Mass production at low cost – With the help of technology, mass production
could be carried out more efficiently at a lower cost. This resulted in increased
quantity and improved quality of goods produced.

3. Specialisation of functions – Modern industrial work required more specialists

at every level and consequently the demand for semi-skilled or unskilled workers
reduced considerably. This created problems in effective HR planning.

4. Elaborate control mechanism/ Reduction in work skills/ Sense of alienation

– The highly automated industries required more control mechanism so as to
monitor the work to be carried out effectively. Too many checks, control and strict
disciplined also has an adverse affect in their work behavior and motivation. Too
much of automation and mechanization also reduces requirement of skills and
the work becomes repetitive and monotonous. This gives a feeling of alienation,
dissatisfaction etc which again affexts their productivity and morale.
 5. Hard work and higher capital formation – Industrialisation has led to increased
capital formation which in turn boosts the economy of the country. This not only
affects the workers but also the social and political system of the country.

6. Evolution of entrepreneurial elite – The increase of large scale industries led

to the emergence of 2distinct classes – the owners and the workers, each with
their own philosophy and attitude, radically different from each other.

7. Interdependence – The mechanization of work led to more interdependence

and inter relation tasks. Thus a problem or breakdown causes the whole
assembly line to come to a standstill which ultimately affects the profitability of
the organization.

8. Unhygienic harsh working conditions and living conditions – One of the

most degrading impact of industrialization on workers is that they were forced to
live and work in utmost unhygienic human conditions including females and
children. Though with the passage of time, the system gradually changed in
terms of improvement in the working and living conditions of the workers.

9. Increased mobility – With standardization of work methods, increased

education and training, there was an increase in both geographical and
occupational mobility.

INDUSTRIAL RELATIONS

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.

Industrial relations was formed with a strong problem-solving orientation that

rejected both the classical economists’ laissez faire solutions to labor problems
and the Marxist solution of class revolution.

Concepts and approaches of Industrial Relations-

Industrial Relations is a multidisciplinary field that studies the employment

relationships.It can be defined as the relations between management and union, or
between representatives of employees and representatives of employers i.e. it
represents all aspects of employment relations within the organizational settings.
Industrial Relations also includes the processes through which these relationships are
expressed

The term Industrial Relations comprises of 2 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.

Industrial Relations is an art of living together for purposes of production and/or

services. It applies knowledge derived from the principles of many disciplines:
economics, law, human/industrial psychology, anthropology, sociology, social work etc.

Two Dominant Aspects of Industrial Relations

Two important aspects of the industrial relations scene in a modern industrial society :

1. Cooperation - Modern industrial production is based upon cooperation between

labour and capital. Here labour stands for the workers who man the factories,
mines and other industrial establishments or services. Capital stands for the
owners of business enterprises who supply the capital and own the final
products.

2. Conflict - The second aspect of the system of industrial relations today is, the
existence of conflict. Conflict, like cooperation, is inherent in the industrial
relations set up of today. It becomes apparent when industrial disputes
resulting in strikes and lockouts become frequent.

Industrial Relations encompasses all such factors that influence behavior of

people at work. A few such factors are:

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.

Characters: It aims to study the role of workers unions and employer’s federations
officials, industrial relations officers/managers, mediators/counselors/arbitrator, judges
of labour court, tribunals etc.

Methods: Here the focus is on collective bargaining, workers’ participation in the

industrial relations scheme, discipline procedure, grievance redressal machinery,
dispute settlement machinery, union reorganization, organization of protests through
methods like revision of existing rules, regulations, policies, procedures, hearing of
labour courts, tribunals etc

Contents: It includes matter pertaining to employment conditions like pay, hours of

work, leave with wages, health and safety, disciplinary actions, lay-offs, dismissals,
retirements etc, laws relating to such activities, regulations governing labour welfare,
social security, industrial relations, issues concerning workers’ participating in
management, collective bargaining etc.

Industrial Relation from various points of view:

 Management’s point of view: Their aim is to achieve the best results/ outcomes
with least inputs, improve return on capital and wages, working conditions of
workers and offer incentives to managers to strive for continuous improvement in
relations and mutual cooperation between employers and employees.
 Workers/trade union’s point of view- Their aim is to improve wages and working
conditions, gain control over work, secure redressal of grievances and at times even
pursue political actions.

 Government’s point of view- Their aim is to develop sound labour management

relations for realizing the goals of economic and social development.

Industrial relations has three faces

Science building Problem solving Ethical

a. In the science building face, industrial relations is part of the social sciences,
and it seeks to understand the employment relationship and its institutions
through high-quality, rigorous research in the field of labor economics, industrial
sociology, labor and social history, human resource management, political
science, law, and other areas.
 b. In the problem solving face, industrial relations seeks to design policies and
institutions to help the employment relationship work better.

c. In the ethical face, industrial relations contains strong principles about workers
and the employment relationship - especially the rejection of treating labor as a
commodity in favor of seeing workers as human beings, entitled to human rights

Industrial relations in India–

(General scenario- With the emergence of factories, cottage industries were thrown in
back gear, compelling a lot of workers to leave their farms and become wage earners in
factories with meager wages and poor working conditions. With passage of time a
substantial population concentrated in industrial centres and this population was broadly
characterized by haves and have nots. Both had radically different interests and
ideologies. This led to development of unions to further their causes. The government
later came to the scene to regulate working conditions, wages etc.)

a. Industrial Relations: Organized sector and their impact on unorganized

sector- There was a rapid transformation from the agrarian system to an
industrial one. But of the total population only 37% are in the workforce of which
only about 25.5 % are in the organized sector. But the patterns of Industrial
Relations has a definite impact on labour-management relations in the
unorganized sector. The trends and patterns established in the organized sectors
spills over as there is always pressure on unorganized organizations to match its
employment, working conditions, benefits etc with that of organized sector.

b. Unions are important force in the Indian political scenario- Unions are
sometimes a fall out of the political system and is used for electioneering
purpose. Also unions sponsored by ruling parties has an influence on the
legislative process through their intense lobbying. Strong national level unions
are consulted by government in formulating various socio-economic policies
which in turn influences the system of industrial relations.

c. Varying patterns of Industrial Relations in India – The IR patterns vary not

only in unorganized and organized sector but also within the latter. Due to non
unionization in the unorganized sectors the grievances are at times redressed by
threats of dismissal or other violent forms, thus the problem of Industrial
Relations is not allowed to surface.
 d. Changing dynamics of Industrial Relations in India – Initially with the
adoption of socialistic pattern of society and subsequent acceptance of Industrial
policy, the public sector was entrusted with the responsibility of accelerating
economic development and growth in the country. There were many constraint in
the growth and development of the private sector. The industrial relations
scenario was poor in the private sectors and the employees had to suffer in the
hands of the employers. The employees of public sector got a better deal. With
the liberalization of the Indian Economy, the labour-management relations are
now improving in the private sectors and getting strained in the public sector.

Scope of Industrial Relations: Apart from Industrial relations, industrial life also creates
a social relationship which regulates the relations and working of a wider variety of
people directly or indirectly.

Industrial Relations thus includes

i. Labour relations : relations between union and management.

ii. Employer-employee relations : relations between management and

employees.

iii. Group relations: relations between various groups of the working people

iv. Community or public relations: relations between industry and society.

No. i and ii are generally used synonymously and iii and iv form part of the discipline –
Sociology.

Aspects of industrial relations

1. Development of healthy labour-management relations – Presence of a

strong, well organized, democratic and responsible trade unions help in
enhancing job security of employees, increase in workers’ participation in
management etc which lead to better labour management relations

2. Maintenance of industrial peace – This can be nurtured by setting up

machineries for prevention and settlement of industrial disputes (developing
various legislative and administrative enactments), government should have the
power to refer disputes to adjudication when there is a major crises, government
should enjoy power to maintain status quo, to be exercised if after referring to
arbitration, either party refuses to comply, and the provision of bipartite and
tripartite forums for settlement of disputes.
 3. Development of Industrial Democracy – where the labour has the right to be
associated with the management of an industry. Techniques to achieve this
objective – establishment of shop councils and joint management councils at the
floor and plant level, recognition of Human Rights in Industry, increase in labour
productivity and availability of proper work environment.

Participants in Industrial Relations

The Industrial Relations System is an organisation of recognised major variables

which exert a controlling influence on industrial relations. On this basis there are
three major variables (participants) in industrial relations:

i) Workers and their Organisations: Here, the emphasis is on the members of

organisations, the personal characteristics of workers, their cultural and
educational attainments, qualifications, skills and attitudes to work, etc.

ii) Managers and their Organisations: Here, the emphasis is on the work groups,
teams, the variations in their sizes, composition and the extent of specialisation
they impose. Provision is made for internal communication, for the structure of
status and authority and for such ancillary organisations such as trade unions
and employers’ associations.

iii) Role of the Government: Here the emphasis is on the role and responsibilities
of governmental agencies, the extent of official intervention, assistance and
regulation of working conditions and working communities.

Change In the Role Of The Three Actors

1. Management

 The Exploitative Authoritarian system

 Benevolent Authoritarianism

 Consultative Style

 Participative Style

2. Workers’ Unions

 Sectional Bargainers

 Class Bargainers
  Ascent of the State

 Partners in Social Control

 Enemy of the System

3. The Government - The third actor is the Government. The Government may
assume any of the following roles.

 Laissez-faire Philosophy

 Paternalism

 Tripartism

 Voluntarism

 Interventionism

The three actors in the system interact with each other to yield the basic
output – i.e. set of rules that govern working conditions and terms of
employment.

Factors that affect Industrial Relations-

1.Institutional Factors – like state policy, labour laws, collective bargaining

agreements, labour unions, employers’ federations etc

2. Economic Factors – like economic organizations( socialist, communist,

capitalist), type of ownership (individual, company – domestic, MNC, government,
cooperative ownership), source of labour supply, disparity of wages between groups,
level of unemployment etc

3. Social Factors – These factors like caste, creed, status are loosing importance
with the acceleration of industrialization but cannot be ignored.

4. Technological Factors – like work methods, type of technology used, etc as

these factors influence employment status, wage level, etc

5. Psychological Factors – like owners’ attitude, perception of workforce, workers’

attitude, their motivation, morale, interest, dissatisfaction etc has an important impact
in the industrial relations
6. Political Factors – like system of government, political philosophy, attitude of
government towards labour problems etc. IR are largely shaped by the amount of
involvement of political parties in trade union activities.

7. Enterprise related Factors – like style of management, its values, organizational

climate, competition, adaptability to changes, HR policies etc

8. Global Factors – like international relations, global conflicts, economic and

trading policies of power blocks, international trade agreements, International labour
agreements.

BASIC CONCEPTS AND VALUES THAT GOVERN SOUND INDUSTRIAL

RELATIONS

 Equity & Fairness – Equity/ fairness refer to equal treatment to one and all
under comparable circumstance in industrial relations.

 Power & Authority – Power is the ability to influence, impose or control. It

implies use of force. Its various aspects are – power to reward/ punish/ coerce
others, position power, expert power due to knowledge/experience/skills,
associational power through membership in unions/coalitions/networking etc.
Authority is the right to expect and command obedience.

 Individualism & Collectivism – The fundamental basis of a democratic society

is the freedom of the individual. In an employment relationship, collectivist basis
may negate or limit an individual’s freedom.

 Integrity, Trust & Transparency – Integrity is adhering to what is professional,

Trust is established between and among people. Transparency is promoted
through sharing of information, openness in communication, willingness to
explain and reason out the motives behind decisions and actions.

SUBSTANCE OF A SOUND INDUSTRIAL RELATIONS SYTEM

 The structure of the economy and labour market

  Constitutional provisions, legal frameworks & labour standards ( international &
national, statutory & voluntary)

 The structure of trade unions and employers organizations, their linkages,

attitudes & approaches.

 The nature and degree of government intervention

 Policies on industrial relations at international, national, industry, firm and

workplace level.

 Labour market policies, labour law administration, dispute relation mechanism

etc.

 Collective bargaining and workers participation.

ATTRIBUTES OF A SOUND INDUSTRIAL RELATIONS SYSTEM

 Harmonizes the interests of ecologically sustainable economic growth with social

progress and justice

 Generates productive employment

 Contributes to improvement in the productivity and quality of goods/services at

economic/competitive/cost prices

 Improves the well-being and quality of life of workers and their families.

BASIC REQUIREMENTS FOR A SUCCESSFUL INDUSTRIAL RELATIONS

PROGRAMME:

1. Top Management Support

2. Sound Personnel Policies

3. Adequate Practices should be Developed by Professionals

4. Detailed Supervisory Training

5. Follow up of Results

6. Relationship Building/Culture Building – Long term

Theoretical perspectives - Industrial relations describes three major theoretical
perspectives regarding the understanding and analysis of workplace relations. Each
view offers a particular perception of workplace relations and interprets workplace
conflict, the role of unions and job regulation differently.

The three views are 1 Unitarism, 2.Pluralist 3.Radical.

1.Unitarist perspective - In unitarism, there is only one source of authority;

management. They own and therefore control. The organization is perceived as an
integrated and harmonious whole with the ideal of "one happy family", where
management and other members of the staff all share a common purpose with mutual
cooperation. Unitarism is based on the assumption that an organization is composed of
a group of people under a single, unified loyalty structure. It thus has a paternalistic
approach where it demands loyalty of all employees, being predominantly managerial in
its emphasis and application.

Consequently, trade unions are deemed as unnecessary and avoidable since the loyalty
between employees and organizations are considered mutually exclusive, where there
can't be two sides of industry. Conflict is perceived as irrational, disruptive and the
pathological result of agitators, interpersonal friction and communication breakdown.

Employers and management find the unitary perspective attractive as it legitimizes their
authority to govern. This perspective is outmoded.

2.Pluralist perspective- This is based on the assumption that the organization is

composed of individuals who make up distinct sectional groups, each with its own
interests, objectives and leadership. In particular, the two predominant sub-groups in
the pluralistic perspective are the management and trade unions. Consequently, the
role of management would lean less towards enforcing and controlling and more toward
persuasion and co-ordination.

This perspective sees conflicts between management and employees as rational and
inevitable. Trade unions are deemed as legitimate representatives of employees to
collectively safe guard their interests. Conflict is dealt by collective bargaining, which
can influence job regulations/control and achieve a balance of power between
management and trade unions.

All interest groups have their say and both the parties strive to exercise
economic( wages & benefits) as well as political (control) power. Hence pluralist is
about mutuality and the reciprocal influence of management over trade unions and
workers.

a. In the workplace, pluralists therefore champion grievance procedures,

employee voice mechanisms such as works councils and labor unions,
collective bargaining, and labor-management partnerships.

b. In the policy arena, pluralists advocate for minimum wage laws,

occupational health and safety standards, international labor standards, and
other employment and labor laws and public policies

These institutional interventions are all seen as methods for balancing the employment
relationship to generate economic efficiency and employee equity.

3.Radical perspective- This is based on the notion that the production system is
privately owned and is motivated by profit. Radical theories are strongly identified with
Marxist theories and the radical perspective is sometimes referred to as the "conflict
model". This perspective sees inequalities of power and economic wealth as having
their roots in the nature of the capitalist economic system. Conflict is therefore seen as
inevitable and trade unions are a natural response of workers to their exploitation by
capital. They favour transformation of trade unions into revolutionary organizations.

Approaches to Industrial Relation: Industrial relations can be viewed as a

eclectic system composed of group of people and organizations working with varying
viewpoints. It can be viewed from various angles ranging from economic, social,
political, psychological, and managerial A few of the approaches are:

1.THE SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

Dunlop considered industrial relations a subsystem of society divided the system into
four interrelated elements comprising of ‘certain actors, certain contexts, an ideology
which binds the industrial relations system together and a body of rules created to
govern the actors at the workplace.’ This approach is helpful in studying the industrial
relations as it focuses on participants in the process, environmental forces and the other
inter relations within the IR system.

Dunlop’s framework of Industrial Relations System.

Inputs Processes Outputs

Actors Bargaining

Environmental Conciliation Rules

Contents Arbitration

Ideology Lawmaking etc

 The actors: They are (i) managers and their representatives, (ii) workers and
their organizations and (iii) specialized government agencies concerned with
workers, enterprises and their relationships. The first two are directly related to
each other.

 The environmental contents: (i) technological characteristics of the workplace

(ii) the product and factors market or budgetary constraints that impinge on the
actors (iii) the locus and distribution of power in the larger society

 The ideology: These are a set of ideas and beliefs commonly held by the actors
that helps to bind or integrate the system as an entity.

 The network of rules: The result of all the interaction within the system, leads to
establishing rules like country’s labour policy, labour agreement etc and deciding
their application so that the workers gat a fair deal.

All these factors are critical in an industrial relations system and may be expressed in a
variety of forms: regulations & policies of management , decrees, decisions, awards, or
orders of government agencies, collective bargaining agreements, customs and
traditions of workplace & work community etc. These rules may be incorporated in a
number of these forms, they may be written, in oral form or customary practice.

Some limitations of the systems framework: With liberalization and growing

environmental concerns, apart from managers, workers and governments, consumers
and community also plays a critical role in IR processes and outcomes. Also
behavioral aspects like human motivations, preferences etc have been ignored.

2. PSYCHOLOGICAL APPROACH TO INDUSTRIAL RELATIONS:

Psychologists associated the problems of industrial relations with the perceptions and
attitudes of the focal participant: labour & management. Mason Harie conducted a test
on both the groups and concluded that
a. The general impression about a person is radically different when he is seen as a
representative of management from that of the person seen as a representative of
labour.

b. The management and labour see each other as less dependable

c. Both parties see each other as deficient in terms of emotional characteristics and
inter personal relations.

These variance is due to their individual perception. The conflicts between management
and labour occur mainly because each group negatively views/ perceives the behavior
of the other. This leads to strained inter-personal and inter-group relations breeding
disharmony and during conflicts not only their interest but also personalities are at
stake.

3.SOCIOLOGICAL APPROACH TO INDUSTRIAL RELATIONS:

The industry is a social world comprising of a community made up of individuals with

differing personalities, varying educational background, family breeding, emotions etc.
Various sociological factors like value system, customs, norms of both labour and
management affect the industrial relations and their work behavior is largely influenced
by these factors.

Moreover social consequences of industrialization like social mobility, migration

generates many social evils like family disintegration, stress & strain, delinquency,
personal & social disorganization leading to vices like drinking, gambling, drug abuse
etc. These affect the efficiency and productivity of the workers and influences Industrial
Relations.

Whenever industrialization gains momentum, consequently new social patterns emerge

along with new relationships, institutions, behavioral patterns and techniques to handle
human resources develop.

All these shape the industrial system. With the passage of time the profile of the
industrial worker has changed and he has become more urban in outlook, no longer
unskilled or neglected by society and is more secure in his employment. Management
also gives importance on the use of behavior techniques while dealing with the human
side of the enterprise and the flow of authority, power or control has become more
democratized. Sociologically, in the process of change, industrial relations are
becoming more complex.

4.HUMAN RELATIONS APPROACH TO INDUSTRIAL RELATIONS:

This approach deals with the most delicate area i.e. humans who have their own
emotions, perceptions, attitudes, personality etc. These factors makes them complex
individuals and when they interact with each other their complexity multiplies.

The problems of industrial relations rises when they are not properly managed both at
individual and group level.

The human resource management policies relating to leadership and motivation has a
profound influence on work behavior. E.g. autocratic style may lead to dissatisfaction
and demotivate people to work.

Another important factor to maintain good human relations and industrial relations is the
study of human need and the satisfaction of these needs. The 4 basic needs are
physiological, safety & security, social and egoistic needs. Each higher orger need
arises once the lower order needs are satisfied. Though no specific diagnosis can be
made, but the management should try to design a suitable motivational strategy to
provide their optimum need satisfaction required to maintain good human relations.

Application of techniques oh human relations will lead to good industrial relations.

 The workers will have greater job satisfaction, develop greater involvement in
their work, and can identify their objectives with that of the organization.
 The manager will develop a greater insight and effectiveness in his work.

5.SOCIO-ETHICAL APPROACH TO INDUSTRIAL RELATIONS:

This approach holds that industrial relations besides having a sociological base also has
some ethical ramifications. Good industrial relations can be maintained when both the
labour and management realize their moral responsibilities and work through mutual
cooperation and greater understanding of each other’s problems.

6.GANDHIAN (TRUSTEESHIP) APPROACH TO INDUSTRIAL RELATIONS:

Gandhiji’s views on industrial relations are based on his fundamental principles of truth,
non violence. And non possession. This philosophy presumes the peaceful coexistence
of capital and labour and call for the resolution of conflict by non violent, non
cooperation peaceful strikes to be resorted only if the employers fail in their moral
appeals.

The principle of trusteeship holds that though the capital legally belongs to the owners,
morally it belongs to the society. A trustee is one who holds property in trust for
another/others. For Gandhiji, this is an application of the law of God to human society
and human institutions.

In case of conflict Gandhiji advocated-

 The workers should seek redressal of reasonable demands only through

collective action
 If they have to organize strikes, it should be peaceful and non violent.
 Strikes should be avoided in industries of essential services

India’s industrial relations system has been largely influenced by Gandhian thought.
There is an emphasis on peaceful settlement of industrial disputes and the government
expects the parties to resolve their disputes peacefully and stresses on mutual
negotiations. In case the parties desire to refer their disputes to arbitration, it is
imperative that the trade unions serve a 14 day notice of strike to the employers