Professional Documents
Culture Documents
Industrial Relations and Labour Law
Industrial Relations and Labour Law
Industrial Relations and Labour Law
● The term “industrial relations” denotes the relation between management and Labour. It
covers all sorts of relationship , individual and collective and hence the orbit of what we
are accustomed to call labour law comprehends matters of industrial disputes , of
collective agreements as well is of job security, in short anything that can arise between
the managers and those subject to managerial power.
● In the opinion of V. B. Singh “Industrial relations are an integral aspect of social relations
arising out of employer-employee interaction in modern industries which are regulated by
the State in varying degrees, in conjunction with organised social forces and influenced
by the existing institutions. This involves a study of the State, the legal system, and the
workers’ and employers’ organizations at the institutional level; and of the patterns of
industrial organisation (including management), capital structure (including technology),
compensation of the labour force, and a study of market forces all at the economic level”
.
● Armstrong has defined IR as “IR is concerned with the systems and procedures used by
unions and employers to determine the reward for effort and other conditions of
employment, to protect the interests of the employed and their employers and to regulate
the ways in which employers treat their employees”.
● IR can now safely be defined as a coin having two faces: co- operation and conflict. This
relationship undergoes change from thesis to antithesis and then to synthesis. Thus, the
relationship starting with co-operation soon changes into conflict and after its resolution
again changes into cooperation. This changing process becomes a continuous feature in
industrial system and makes IR concept as dynamic and evolving one.
Based on above definitions of IR, the scope of IR can easily been delineated as follows:
The primary objective of industrial relations is to maintain and develop good and healthy
relations between employees and employers or operatives and management. The same is sub-
divided into other objectives.
● Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by cresaing free labour markets and large-scale industrial
organizations with thousands of wage workers.
● 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 as a middle
ground between classical economics and Marxism, with Sidney Webb and Beatrice
Webb's Industrial Democracy (1897) being a key intellectual work. Industrial relations
thus rejected the classical econ.
● Institutionally, industrial relations was founded by John R. Commons when he created
the first academic industrial relations program at the University of Wisconsin in 1920.
Another scholarly pioneer in industrial relations and labour research was Robert F.
Hoxie.
● Early financial support for the field came from John D. Rockefeller Jr. who supported
progressive labour–management relations in the aftermath of the bloody strike at a
Rockefeller-owned coal mine in Colorado. In Britain, another progressive industrialist,
Montague Burton, endowed chairs in industrial relations at the universities of Leeds,
Cardiff, and Cambridge in 1929–1930.
● Beginning in the early 1930s there was a rapid increase in membership of trade unions in
the United States, and with that came frequent and sometimes violent labour–
management conflict.During the Second World War these were suppressed by the
arbitration powers of the National War Labor Board.
● However, as the Second World War drew to a close and in anticipation of a renewal of
labour–management conflict after the war, there was a wave of creations of new
academic institutes and degree programs that sought to analyse such conflicts and the role
of collective bargaining.[21]
● The most known of these was the Cornell University School of Industrial and Labor
Relations, founded in 1945. But counting various forms, there were over seventy-five
others. These included the Yale Labor and Management Center, directed by E. Wight
Bakke, which began in 1945.An influential industrial relations scholar in the 1940s and
1950s was Neil W. Chamberlain at Yale and Columbia universities.
● Industrial relations was formed with a strong problem-solving orientation that rejected
both the classical economists' laissez-faire solutions to labour problems and the Marxist
solution of class revolution. It is this approach that underlies the New Deal legislation in
the United States, such as the National Labor Relations Act and the Fair Labor Standards
Act.
● By the early 21st century, the academic field of industrial relations was often described as
being in crisis.In academia, its traditional positions are threatened on one side by the
dominance of mainstream economics and organizational behaviour, and on the other by
postmodernism.
● In policy-making circles, the industrial relations emphasis on institutional intervention is
trumped by a neoliberal emphasis on the laissez-faire promotion of free markets. In
practice, trade unions are declining and fewer companies have industrial relations
functions.
● The number of academic programs in industrial relations is therefore shrinking, while
fields such as human resource management and organizational behaviour grow. The
importance of this work, however, is stronger than ever, and the lessons of industrial
relations remain vital. The challenge for industrial relations is to re-establish these
connections with the broader academic, policy, and business worlds.
Approaches to Industrial Relations
The underlying assumption is that everyone benefits when the focus is on common
interest and promotion of harmony. Conflict in the form of strikes is not only regarded as
necessary but destructive.
● Pluralistic Approach: The pluralistic approach totally departs from the unitary approach
and assumes that the organization is composed of individuals who form distinct groups
with their own set of aims, objectives, leadership styles, and value propositions.
The organization is multi structured and there will be continued tension due to conflicts
within and between the various sectional groups. In contrast to the unitary approach, the
pluralistic approach considers conflict between management and employees as rational
and inevitable.
● Marxist Approach: Also known as the ‘Radical Perspective’, the Marxist approach is
based on the proposition that the economic activities of production, manufacturing, and
distribution are majorly governed by the objective of profit.
Marxists, like the pluralists, regard conflict between employers and employees as
inevitable. However, pluralists believe that the conflict is inevitable in all organizations.
Marxists see it as a product of the capitalist society. Adversarial relations in the
workplace are simple one aspect of class conflict.
The Marxist approach, thus, focuses on the type of society in which an organization
functions. Conflict arises not only because of competing interests within the organization,
but because of the division within society between those who won or manage the means
of production and those who have only their labour to offer. Industrial conflict is, thus,
seen as being synonymous with political and social unrest.
The Marxist approach argues that for social change to take place, class conflict is
required. Social change initiates strong reactions from the worker class and bridges the
gap between the economically settled owners of factors of production and the
economically dependent worker class. This approach views pluralism as unreal and
considers industrial disputes and class conflicts as inevitable for the circular functioning
of an industry.
M K Gandhi – The Gandhian Approach: Gandhiji can be called one of the greatest labour
leaders of modern India. His approach to labour problems was completely new and refreshingly
human. He held definite views regarding fixation and regulation of wages, organisation and
functions of trade unions, necessity and desirability of collective bargaining, use and abuse of
strikes, labour indiscipline, and workers participation in management, conditions of work and
living, and duties of workers. The Ahmedabad Textile Labour Association, a unique and
successful experiment in Gandhian trade unionism, implemented many of his ideas. Gandhiji had
immense faith in the goodness of man and he believed that many of the evils of the modern
world have been brought about by wrong systems and not by wrong individuals. He insisted on
recognising each individual worker as a human being. He believed in nonviolent communism,
going so far as to say that “if communism comes without any violence, it would be welcome.”
Gandhiji laid down certain conditions for a successful strike. These are – (a) the cause of the
strike must be just and there should be no strike without a grievance; (b) there should be no
violence; and (c) non-strikers or “blacklegs” should never be molested. He was not against
strikes but pleaded that they should be the last weapon in the armoury of industrial workers and
hence, should not be resorted to unless all peaceful and constitutional methods of negotiations,
conciliation and arbitration are exhausted. His concept of trusteeship is a significant contribution
in the sphere of industrial relations. According to him, employers should not regard themselves
as sole owners of mills and factories of which they may be the legal owners. They should regard
themselves only as trustees, or co-owners. He also appealed to the workers to behave as trustees,
not to regard the mill and machinery as belonging to the exploiting agents but to regard them as
their own, protect them and put to the best use they can. In short, the theory of trusteeship is
based on the view that all forms of property and human accomplishments are gifts of nature and
as such, they belong not to any one individual but to society. Thus, the trusteeship system is
totally different from other contemporary labour relations systems. It aimed at achieving
economic equality and the material advancement of the “havenots” in a capitalist society by non-
violent means. Gandhiji realised that relations between labour and management can either be a
powerful stimulus to economic and social progress or an important factor in economic and social
stagnation. According to him, industrial peace was an essential condition not only for the growth
and development of the industry itself, but also in a great measure, for the improvement in the
conditions of work and wages. At the same time, he not only endorsed the workers’ right to
adopt the method of collective bargaining but also actively supported it. He advocated voluntary
arbitration and mutual settlement of disputes. He also pleaded for perfect understanding between
capital and labour, mutual respect, recognition of equality, and strong labour organisation as the
essential factors for happy and constructive industrial relations. For him, means and ends are
equally important.
Systems Approach
John Dunlop gave the systems theory of industrial relations in the year 1958. He believed that
every human being belongs to a continuous but independent social system culture which is
responsible for framing his or her actions, behaviour and role.
The industrial relations system was based on three sets of different variables:
1. Actors: By actors here we mean that the individuals or parties involved in the
process of developing sound industrial relations. This variable is denoted by ‘A’.
2. Contexts: The contexts refer to the setup in which the actors perform the given
tasks. It includes the industry markets (M), technologies (T) and the power
distribution in the organization and labour unions(P).
3. Ideology: The similar ideas, mentality or beliefs shared by the actors helps to blend
the system. It can be expressed by the initial (I)
Grievance Handling
Causes of Grievances:
1. Economic: Employees may demand for individual wage adjustments. They may feel
that they are paid less when compared to others. For example, late bonus, payments,
adjustments to overtime pay, perceived inequalities in treatment, claims for equal pay,
and appeals against performance- related pay awards.
5. Employee relations:Employees are unable to adjust with their colleagues, suffer from
feelings of neglect and victimization and become an object of ridicule and humiliation, or
other inter- employee disputes.
Effects of Grievance
b. Low productivity
important for HRs to build a system of hearing and redressing employee grievances. It
deep listening and empathise with the griever to fully understand what they are
unhappy about.
● Inquire and investigate: Once you have the employees’ point of view on the
matter, set in motion your own inquiry to understand all the facets of the issue and
figure out the root cause.
● Hold a formal meeting: Call in all the relevant parties and ask the employee to
present any evidence to back up their issue. You can also ask them about how they
woud like the issue to be resolved
● Decide and act: Once you reach a conclusion, take a decision you think is best
the employee to formally appeal in case they are unhappy with the resolution.
Clearly communicate the rules for the same.
● Review the situation: Decide on a relevant time interval and review the situation
OR
The manager should immediately identify all grievances and must take appropriate steps to
eliminate the causes of such grievances so that the employees remain loyal and committed to
their work. Effective grievance management is an essential part of personnel management. The
managers should adopt the following approach to manage grievance effectively-
1. Quick action- As soon as the grievance arises, it should be identified and resolved.
Training must be given to the managers to effectively and timely manage a grievance.
This will lower the detrimental effects of grievance on the employees and their
performance.
2. Acknowledging grievance- The manager must acknowledge the grievance put forward
by the employee as manifestation of true and real feelings of the employees.
Acknowledgement by the manager implies that the manager is eager to look into the
complaint impartially and without any bias. This will create a conducive work
environment with instances of grievance reduced.
3. Gathering facts- The managers should gather appropriate and sufficient facts explaining
the grievance’s nature. A record of such facts must be maintained so that these can be
used in later stage of grievance redressal.
4. Examining the causes of grievance- The actual cause of grievance should be identified.
Accordingly remedial actions should be taken to prevent repetition of the grievance.
5. Decisioning- After identifying the causes of grievance, alternative course of actions
should be thought of to manage the grievance. The effect of each course of action on the
existing and future management policies and procedure should be analyzed and
accordingly decision should be taken by the manager.
6. Execution and review- The manager should execute the decision quickly, ignoring the
fact, that it may or may not hurt the employees concerned. After implementing the
decision, a follow-up must be there to ensure that the grievance has been resolved
completely and adequately.
An effective grievance procedure ensures an amiable work environment because it redresses the
grievance to mutual satisfaction of both the employees and the managers. It also helps the
management to frame policies and procedures acceptable to the employees. It becomes an
effective medium for the employees to express t feelings, discontent and dissatisfaction openly
and formally.
Collective Bargaining
(i) Negotiations
(ii) Drafting
(iii) Administration
The working of collective bargaining assumes various forms. In the first place, bargaining may
be between the single employer and the single union, this is known as single plant bargaining.
This form prevails in the United States as well as in India.
Secondly, the bargaining may be between a single firm having several plants and workers
employed in all those plants. This form is called multiple plants bargaining where workers
bargain with the common employer through different unions.
Thirdly, instead of a separate union bargaining with separate employer, all the unions belonging
to the same industry bargain through their federation with the employer’s federation of that
industry. This is known as multiple employer bargaining which is possible both at the local and
regional levels. Instances in India of this industry-wide bargaining are found in the textile
industry.
Charac of collective bargaining
1. Same as features
2. “
3. Flexible and not static.
4. Dynamic concept as it is growing, expanding and changing in view of the attitudes,
opinions and perceptions of both the parties.
5. Ensures democracy at workplace
6. Not a competitive process rather a complementary process.
1. The Creation of the Trade Agreement:In negotiating the contract, a union and
management present their demands to each other, compromise their differences, and
agree on the conditions under which the workers are to be employed for the duration of
the contract. The coverage of collective bargaining is very uneven; in some industries
almost all the workers are under agreement, while in others only a small portion of the
employees of the firms are covered by the agreement.
The negotiating process is the part of collective bargaining more likely to make headline
news and attract public attention; wage increases are announced, ominous predictions
about price increase are reduction in employment are made.
However, new contracts may be written to meet the problems involved in the previous
contract. Furthermore, as day-to-day problems are solved, they set precedents for
handling similar problems in future. Such precedents are almost as important as the
contract in controlling the working conditions. In short, collective bargaining is not an
on-and-off relationship that is kept in cold storage except when new contracts are drafted.
Participative Management
- Delegating power: It's necessary to give some power to the employees. They must be able to
make decisions at their level as soon as possible, while having the opportunity to refer to their
manager (for example let your employees self-plan their work and the orientations they prefer).
● The Industrial Disputes Act, 1947 is a piece of social legislation enacted to provide for
investigation and settlement of industrial disputes and for certain other matters. It is an
Act calculated to ensure specific justice to both employers and workmen and advance the
progress of industry by bringing about harmony and cordial relationship between the
parties.
● The co-operation between capital and labour would obviously lead to more production
and that naturally helps boost national economy and progress. In achieving this goal,
industrial adjudication takes into account several principles such as the principle of
comparable wages, productivity of the trade or industry, cost of living and ability of the
industry to pay, etc. apart from several other factors.
● In deciding an industrial dispute, one of the primary objectives is and has to be the
restoration of peace and goodwill in the industry itself on fair and just basis to be
determined in the light of all relevant considerations.After the close of the First World
War, there was a great outbreak of industrial unrest. It led to the passing of the Trade
Disputes Act by the Government of India in the year 1929.
The Preamble to the Act reads thus, "An Act to make provision for the investigation settlement
of industrial disputes and for certain other purposes."
On the basis of various judgements of the Supreme Court given from time to time
(especially Dimakuchi Tea Estate Case, 1958) is made, the principal objectives of the Act may
be stated as below:
(a)To ensure social justice to both employers and employees and advance progress of industry by
bringing about harmony and cordial relationship between the parties.
(b) To settle disputes arising between the capital and labour by peaceful methods and
through the machinery of conciliation, arbitration and if necessary, by approaching the tribunals
constituted under the Act. If disputes are not settled, it would result in strikes or lockouts and
entail dislocation of work, essential to the life of the community.
(c) To promote measures for securing and preserving amity and good relations between the
employer and workmen.
(d) To prevent illegal strikes and lockouts.
Industry: The term "Industry” has been defined under Sec. 2 (j) to mean any business, trade,
undertaking, manufacture or calling of employers and includes any calling, service, employment,
handicraft or industrial occupation or vocation of workmen.
Industrial Dispute (Section 2K):
● Industrial Dispute means any dispute or difference between employers and employer or
between employers and workmen and between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or with
the conditions of labour, of any person.
● The concept of employment involves employer-employee relationship and a contract of
employment. An employer may dismiss a man and the organisation may decline to
employ him. This matter raises a dispute as to non-employment. Reinstatement is
connected with non-employment.
● The definition is in three parts. The first part refers to the factum of a real and substantial
dispute, the second part to the parties to the dispute and the third to the subject-matter of
the dispute (Standard Vacuum Refining co. vs. Their Workmen, AIR 1960 S.C. 948).
Unless a demand is raised by a workman and rejected by the management, there cannot
be any strial dispute (W.S. Insulators of India Ltd. Vs. Industrial Tribunal, 1977-II
LLJ.225).
● In sum, the following conditions must exist for an Industrial Dispute:
(i) There must be an industry;
(ii) between the parties there must be a relationship of workmen and employer
(iii) the dispute must be connected with the employment or non-employment, terms of
employment of the conditions of labour;
(iv) the dispute must be related to a workman or any other person in whom, the group has
a direct and substantial interest; and
(v) generally speaking, the dispute should not be merely an individual dispute; it should
in some sense be a collective dispute. However, in disputes related to termination of
service (dismissal, discharge, or retrenchment), an individual can raise an industrial
dispute
Workman (Section 2(S)): "Workman" means any person (including an apprentice) employed in any
industry to do any skilled or unskilled manual, supervisory, operational, technical or clerical work for hire
or reward, whether the terms of employment be expressed or implied, and for the purposes, of any
proceeding under this Act in relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute or whose
dismissal, discharge, or retrenchment has led to that dispute, but does not include any such person:
(i) who is subject to the Army Act, 1950 (46 of 1950), or the Air Force Act, 1950
(45 of 1950), or the Navy (Discipline) Act, 1934 (34 of 1934); or
(ii) who is employed in the police service or as an officer or other employee of a prison; or
(iv) who is being employed in a supervisory capacity, draws wages exceeding 1,600 rupees per mensem
or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in
him, functions mainly of a managerial nature.
● The Workmen Compensation Act, 1923 is an enactment that was issued by the
tral Government and was implemented by various State Governments which gives
social security to workers. This security is offered by the law for people who
work.
● The Act was formed after it was noted that laborers were getting more exposed to
danger with the use of advanced and sophisticated machinery. The common law
had it that the employer would only take up the compensation responsibility if it is
found that the industrial accident was a result of his negligence. In India, the issue
of compensating workmen after fatal and major accidents hit the road in 1884. It
was then in 1885 that the factory and mining inspectors realized that the Fatal
Accidents Act, 1885, was not enough to attend to the intended purposes.
● The State offered a hearing ear when members of the Legislative Assembly,
employers’ representatives, workers and experts in medicine and insurance
formed a committee that gave a report that led to the enacting of the Workmen’s
Compensation Act in 1923.
● The passing of the Act put a stop and offered a relief for workers who would have
gone through court processes that are often expensive, an effort to seek
compensation whenever they acquired an injury during employment.
● Objective of The Workmen Compensation Act
● The Workmen’s Compensation Act of 1923 was formed majorly to give
compensations to workmen in the event of an accident.
● The Act has it that employers should have duties and obligations that include the
welfare of workers after an injury resulting from employment in the same way
they have reserved the right to make profits. The Act aims to see workmen have a
sustainable life after an employment-related accident.
● The Factories Act, 1948 (Act No. 63 of 1948), as amended by the Factories
(Amendment) Act, 1987 (Act 20 of 1987), served to assist in formulating national
policies in India with respect to occupational safety and health in factories and docks in
India. It deals with various problems concerning safety, health, efficiency and well-being
of the persons at work places. It was replaced by the Occupational Safety, Health and
Working Conditions Code, 2020.
● The Act is administered by the Ministry of Labour and Employment in India through its
Directorate General Factory Advice Service & Labour Institutes (DGFASLI) and by the
State Governments through their factory inspectorates. DGFASLI advises the Central and
State Governments on administration of the Factories Act and coordinating the factory
inspection services in the States.
● The Act is applicable to any factory using power & employing 10 or more workers and if
not using power, employing 20 or more workers on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on with the aid
of power, or is ordinarily so carried on, or whereon twenty or more workers are working,
or were working on any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or is ordinarily so
carried on; but this does not include a mine, or a mobile unit belonging to the armed
forces of the union, a railway running shed or a hotel, restaurant or eating place.
● Wages and salaries-Wages and salaries and the most important subjects of Trade Unions.
In the organized industry, wages and benefits are determined through processes such as
collective bargaining, wage boards, conciliation, and adjudication. Working of all these
processes deserves systematic inquiry. Union power and objective facts hopefully
influence the wage scene through these forums.
● Working conditions-Another major objective of the Trade Unions is to insure the safety
of workers. While working every worker must be provided with basic facilities like.
Drinking water, minimum working hours, paid holidays, social security, safety
equipments, lights and others.
● Personnel policies-Any personal policy of the employer with respect to promotion,
transfer and training may be challenge by Trade Unions if arbitrary.
● Discipline-Trade Unions also protect the workers from arbitrary discipline action taken
by management against any worker. No worker should be victimized by management in
the form of arbitrary transfer or suspension.
● Welfare-The main objective of the Trade Union is to work for the welfare of the workers.
This includes welfare of the family members or children of the worker.
● Employee and Employer Relations-for an industrial peace there must be harmony
between employer and employee. But due to superior power of the management
sometimes conflict arises in this situation Trade Union represent the whole group of
workers and continue negotiations with management.[10]
● Negotiating Machinery-Trade Unions may also put proposals before management, as this
policy is based on the principle of Give and Take Trade Unions protect the interest of
workers through collective bargaining.
● Safeguarding Organisational Health and the Interest of the Industry-Trade Unions also
help in achieving employee satisfaction. Trade unions also help in better industrial
relation by creating procedure to resolve the industrial dispute.
● Alone workers feel weak. Trade Union provides him a platform to join others to achieve
social objectives.
Their past.
● Capital is concentrated social force, while the workman has only to dispose of his
working force. The contract between capital and labour can therefore never be struck on
equitable terms, equitable even in the sense of a society which places the ownership of
the material means of life and labour on one side and the vital productive energies on the
opposite side. The only social power of the workmen is their number.
● The force of numbers, however, is broken by disunion. The disunion of the workmen is
created and perpetuated by their unavoidable competition amongst themselves. Trades'
Unions originally sprang up from the spontaneous attempts of workmen at removing or at
least checking that competition, in order to conquer such terms of contract as might raise
them at least above the condition of mere slaves.
● The immediate object of Trades' Unions was therefore confined to everyday necessities,
to expediencies for the obstruction of the incessant encroachments of capital, in one
word, to questions of wages and time of labour.
● This activity of the Trades' Unions is not only legitimate, it is necessary. It cannot be
dispensed with so long as the present system of production lasts. On the contrary, it must
be generalised by the formation and the combination of Trades' Unions throughout all
countries.
● On the other hand, unconsciously to themselves, the Trades' Unions were forming centres
of organisation of the working class, as the mediaeval municipalities and communes did
for the middle class. If the Trades' Unions are required for the guerilla fights between
capital and labour, they are still more important as organised agencies for superseding the
very system of wages labour and capital rule.
● Too exclusively bent upon the local and immediate struggles with capital, the Trades'
Unions have not yet fully understood their power of acting against the system of wages
slavery itself. They therefore kept too much aloof from general social and political
movements.
● Of late, however, they seem to awaken to some sense of their great historical mission, as
appears, for instance, from their participation, in England, in the recent political
movement, from the enlarged views taken of their function in the United States, and from
the following resolution passed at the recent great conference of Trades' delegates at
Sheffield:
● ' That this conference, fully appreciating the efforts made by the International Association
to unite in one common bond of brotherhood the working men of all countries, most
earnestly recommend to the various societies here represented, the advisability of
becoming affiliated to that body, believing that it is essential to the progress and
prosperity of the entire working community.'
( c) Their future
● Apart from their original purposes, they must now learn to act deliberately as organising
centres of the working class in the broad interest of its complete emancipation. They must
aid every social and political movement tending in that direction.
● Considering themselves and acting as the champions and representatives of the whole
working class, they cannot fail to enlist the non-society men into their ranks. They must
look carefully after the interests of the worst paid trades, such as the agricultural
labourers, rendered powerless by exceptional circumstances.
● They must convince the world at large that their efforts, far from being narrow and
selfish, aim at the emancipation of the downtrodden millions.
Post-independence Phase
Debashish Bhattacharjee in his article The evolution of Indian industrial relations: A comparative
perspective, traces the industrial relations history from the 1950s. The major factors which
affected trade unions in one way or the other are discussed below.
Phase 1 (1950-1965)
1. The State knew the welfare of the workers better than the workers themselves, and
intervened to play a paternal role. modell to
4. The Industrial Disputes Act, 1947, came into existence, which gave the employers an
upper hand.
Voluntary arrangements such as Code of Discipline and the Inter-Union Code of Conduct were
brought about to promote collective bargaining. 6. Introduction of Works Committee (1947) and
Joint Management Councils (1958).
Phase 2 (1969-1974)
1. Change in the workers' preferences towards different union types. 2. Multiplicity of unions.
3. Attempt by the government to introduce bipartite system (National Apex Body). 4. 1976
Amendment to Industrial Disputes Act which gave the unions an upper hand.
Phase 3 (1980-1991) T
1. Massive PSU union strike (1982 Bombay Textile Strike) demanding multiplicity. 2.
Decentralized bargaining agreements kicked off. 3. Rise of independent unions and fall of
registered unions.
5. Attempt to remedy limitations of Trade Union Act and Industrial Disputes 6. Monopoly trade
dominated over democratic rights.
Phase 4 (1992-2000)
2. Government froze centralized wage bargaining process and decided to pass on the wage
increase burden to the enterprise.
3. Public looked at unions as declining "sectional interest group". 4. Drop in union membership.
Q. What are the essential conditions for the success of collective bargaining in Indian work
organisations?
The following are some suggested essential conditions for the success of collective bargaining:
1. Constructive consultation between trade union and the management is possible only when
bargaining power of two parties is equal.
2. The parties involved in collective bargaining should accept the principle of 'free consultation'
and 'free enterprise'.
3. Both the parties must have mutual confidence, good faith and a desire to make collective
bargaining machinery a success.
4. The parties involved should try to dispose of the issues in the same meeting minimise the
pending of items.
5. Both the parties should represent the rights and responsibilities of each other.
Trade union relations with employee, management, and state ( HOME ASSIGNMENT)
Formal Groups
Informal Groups
OBEDIENCE
Obedience is generally distinguished from compliance (behavior influenced by peers) and
conformity (behavior intended to match that of the majority).Thus Obedience is a form of social
influence in which a person yields to explicit instructions or orders from an authority figure.
COMPLIANCE
● Compliance” refers to a response, specifically a submission, made in reaction to an
implicit or explicit request.
● Social psychologists view compliance as a means of social influence used to reach goals
or attain social or personal gains.
● Group strength, group size, immediacy, and similarity are all factors that can influence
compliance in an individual.
● There are a number of techniques used to gain compliance, including the foot-in-the-door
technique, the door-in-the-face technique, low-balling, ingratiation, and the norm of
reciprocity.
1. Foot-in-the-Door Technique
In using the foot-in-the-door technique, the subject is asked to perform a small request, and after
agreeing, a larger request is made. Because the subject complied with the initial request or
requests, he or she is more likely to feel obligated to fulfill additional favors.
2. Door-in-the-Face Technique
This technique begins with an initial large request that the subject is not expected to comply
with. The large request is then followed by a second, more reasonable, request.
3. Low-Ball Technique
This technique is frequently employed by car salesmen. Low-balling gains compliance by
offering the subject something at a low initial cost. The cost may be monetary, time related, or
anything else that requires something from the individual. After the subject agrees to the initial
cost, the requester increases the cost at the last moment. The subject is more likely to comply
with this change in cost since he or she feels like an agreement has already occurred
4. Norm-of-Reciprocity Technique
This is based on the social norm that people will return a favor when one is granted to them.
Compliance is more likely to occur when the requester has previously complied with one of the
target’s requests.
CONFORMITY
In psychology, conformity is defined as the act of matching attitudes, beliefs, and behaviors to
group norms. The two major motives in conformity are:
1) normative influence, or the tendency to conform in order to gain social acceptance.
2) informational influence, which is based on the desire to obtain useful information through
Research on conformity
1. Asch
● Solomon Asch’s conformity experiments are one of the best-known illustrations of
conformity. His initial experiment in 1951 was set up as follows. The research participant
was told he was participating in a simple “perceptual” task.
● The participant would enter a room and sit at a table with several other people. These
people were confederates, or individuals who were posing as other participants but were
really working for the researchers. The participant and confederates would be shown a
series of cards that had a reference line and another card that had three comparison lines.
Over the course of several trials, subjects were required to select the comparison line that
corresponded in length to the reference line.
● The participant and confederates were instructed to provide their answers out loud, and
the confederates were told to sometimes unanimously provide a correct answer and
sometimes an incorrect answer. When Asch had the confederates all choose the same
obviously incorrect answer, participants also chose the wrong line 37% of the time.
● In a control group with no pressure to conform, participants had an error rate of less
1%.Asch repeated this experiment with different experimental variables and identified
several factors that influence conformity. Presence of a true partner, who was another
real participant and gave the correct response, decreased levels of conformity.
● Removing this partner halfway through the study caused increased levels of conformity
after their departure. Group size also influenced levels of conformity such that smaller
groups resulted in less conformity than larger groups. Public responses, those that were
spoken in the presence of the confederates, were associated with higher levels of
conformity than private, written responses.
Sheriff
● Muzaffar Sheriff was interested in knowing how many people would change their
opinions to bring them in line with the opinion of a group. In his experiment (1936),
participants were placed in a dark room and asked to stare at a small dot of light 15 feet
away.
● They were then asked to estimate the amount it moved; however, there was no real
movement. Perceived motion was caused by the visual illusion known as the autokinetic
effect. On the first day, each person perceived different amounts of movement, as they
participated in the experiment individually.
● From the second through the fourth day of the study, estimates were agreed upon by the
group. Because there was no actual movement, the number that the group agreed on was
a direct result of group conformity. Sherif suggested this was a reflection of how social
norms develop in larger society.
PSYCHOLOGY OF MOB
Mob psychology is a theoretical approach attempting to explain collective behavior solely on the
basis of the psychological states of people who participate. Mob Psychology is similar to terms
such as: 1. crowd psychology and group mentality. It is portrayed in many works of literature,
including William Shakespeare's Julius Caesar.
Mob psychology shows that 2. individuals tend to behave in a different manner as part of a group
in contrast to acting independently. Members of a group are prone to acting in ways that they
would deem 3. immoral or unjust if in control of their behavior.
This is not due to change in one's belief or principle, but rather the fact that individuals tend to
ignore or 4. avoid one's conscience or rational judgement. It can be said that individuals in a
group defer their goals and5. take upon the identity of the group.
Therefore, members of a group are 6.likely to commit acts they would never commit alone.
Being in a group allows individuals to 7. defer blame, responsibility, accountability, and/or
judgement upon the group.
There exist many evidence and examples of mob psychology in modern society. One example is
the 8. persecution of the Jews during the Holocaust. The Nazi party blamed Germany's weak
economy at the time upon the Jews.
Types of Crowd:
Casual Crowd: Based on your physical location, no common goal, coincidental, eg market
place.
Conventional Crowd: Based on a common act like watching a play, movie, theatre,
conventional and temporary in nature
Expressive Crowd: Can be an extension and expression of more emotions during a conventional
gathering like clapping, shouting, singing, rallys, street plays etc.
Acting Crowd: Violent, agressive,mob,riots etc
GROUP MATURITY
Maturity is less to do with your age/biological age but more to do with your mental development,
wisdome and how you conduct yourself in your relationships with others.
BRUCE TUCKMANS MODEL 1965 - STAGES OF GROUP
DEVELOPMENT/MATURITY
Forming stage: The forming stage involves a period of orientation and getting acquainted.
Uncertainty is high during this stage, and people are looking for leadership and authority. A
member who asserts authority or is knowledgeable may be looked to take control. Team
members are asking such questions as “What does the team offer me?” “What is expected of
me?” “Will I fit in?” Most interactions are social as members get to know each other.
Storming stage: The storming stage is the most difficult and critical stage to pass through. It is a
period marked by conflict and competition as individual personalities emerge. Team
performance may actually decrease in this stage because energy is put into unproductive
activities. Members may disagree on team goals, and subgroups and cliques may form around
strong personalities or areas of agreement. To get through this stage, members must work to
overcome obstacles, to accept individual differences, and to work through conflicting ideas on
team tasks and goals. Teams can get bogged down in this stage. Failure to address conflicts may
result in long-term problems.
Norming stage: If teams get through the storming stage, conflict is resolved and some degree of
unity emerges. In the norming stage, consensus develops around who the leader or leaders are,
and individual member’s roles. Interpersonal differences begin to be resolved, and a sense of
cohesion and unity emerges. Team performance increases during this stage as members learn to
cooperate and begin to focus on team goals. However, the harmony is precarious, and if
disagreements re-emerge the team can slide back into storming.
Performing stage: In the performing stage, consensus and cooperation have been well-
established and the team is mature, organized, and well-functioning. There is a clear and stable
structure, and members are committed to the team’s mission. Problems and conflicts still emerge,
but they are dealt with constructively. (We will discuss the role of conflict and conflict resolution
in the next section). The team is focused on problem solving and meeting team goals.
Adjourning stage: In the adjourning stage, most of the team’s goals have been accomplished. The
emphasis is on wrapping up final tasks and documenting the effort and results. As the work load
is diminished, individual members may be reassigned to other teams, and the team disbands.
There may be regret as the team ends, so a ceremonial acknowledgement of the work and
success of the team can be helpful. If the team is a standing committee with ongoing
responsibility, members may be replaced by new people and the team can go back to a forming
or storming stage and repeat the development process.
GROUP COOPERATION: Mutual goal, benefit, adjustment rtaher than competion or selfish
interest.
GROUP COMPOSITON:
SOCIALISATION : Process on interaction between the individual and the group, begins when
one decides to join the group, ends when one decides to leave the group, learning to adjust with
the norms of the group, change of behaviour for the groups acceptance,
INTEGRATION: Diff groups keep their identity while adjusting with other groups, main aim is
for peace, harmony, cooperation, adjustment between diff socio,cultural, pol groups, eg: India,
unity in diversity.
● Conflict arises out of two perceptions. If 'X' perceives his goals to be incompatible with
those of 'Y' and 'X' has no opportunity to frustrate the goal attainment of 'Y', there is no
conflict.
● Conflict can either exist at the latent or overt level, but generally speaking, conflict is a
term that is limited to overt acts.
● Conflict refers to deliberate behavior. 'X' deliberately tries to prevent 'Y' from attaining
his (X's) goals. If interference is accidental, there is no conflict.
● Conflict occurs when two or more parties pursue mutually exclusive goals, values or
events. It is based on the assumption that there are two or more parties whose interests or
goals appear to be incompatible.
● Conflict is different from competition. In conflict, one side sees an opportunity to
interfere with the other's opportunity to acquire resource or perform activities. In
competition, both sides try to win, but neither side actively interferes with the other.
1. Potential Opposition
○ The first stage of the conflict process is called potential opposition or
incompatibility. In this stage, there are potential areas of conflict that could
develop, and they consist of communication, structure and personal variables. For
Violet, all three areas of incompatibility exist, so it's not surprising that she has
multiple issues with Eric.
○ Eric does not listen very well and always misinterprets what Violet says during
her daily meetings. For example, she might say that employees have to be
friendlier to customers, but Eric takes that to mean that it is okay for him to talk to
them about problems with the store and his personal life. The structure of the
store is also a cause of conflict because Violet has over 25 employees to manage
weekly.
○ She does not have the time to follow Eric around and ensure that he does not
upset customers. In addition, Eric's personal variables lean towards conflict. He
enjoys drama and is always ready to complain or fight with Violet over hours,
tasks or customer service. The next step deals with the recognition of the fact that
there is a conflict.
2. Cognition and Personalization
○ When one of the factors mentioned in the potential opposition stage actually
materializes as a conflict, then stage two occurs based on cognition and
personalization. During this stage, the perception of conflict arises between the
parties.
○ For example, Violet realized that Eric's numerous issues have caused a drop in
sales of 15%. She is cognizant of the fact that Eric is the one responsible and that
she needs to fix this issue.
○ In order for personalization to occur, the parties must feel that there is conflict via
stress, anger or frustration, resulting in emotional involvement. Once conflict
arises, individuals must make a decision on how to handle the problem.
3. Intentions
Intentions come between people’s perceptions and emotions and help those who are involved in
the potential conflict to decide to act in a particular way.
One has to infer what the other person meant in order to determine how to respond to a statement
or action. A lot of conflicts are escalated because one party infers the wrong intentions from the
other person. There are five different ways a person can respond to the other party’s statements
or actions.
○ Competing. One party seeks to satisfy his own interests regardless of the impact
on the other party.
○ Collaborating. One party, or both, desire to fully satisfied the concerns of all
parties involved in the conflict.
● Avoiding. One party withdraws from or suppresses the conflict once it is
recognized.
● Accommodating. One party seeks to appease the opponent once potential conflict
is recognized.
● Compromising. Each party to the conflict seeks to give up something to resolve
the conflict.
4. Behavior: Behavior is the stage where conflict becomes evident, as it includes the statements,
actions and reactions of the parties involved in the conflict. These behaviors might be overt
attempts to get the other party to reveal intentions, but they have a stimulus quality that separates
them from the actual intention stage.
Behavior is the actual dynamic process of interaction. Perhaps Party A makes a demand on Party
B, Party B argues back, Party A threatens, and so on. The intensity of the behavior falls along a
conflict oriented continuum. If the intensity is low, the conflict might just be a minor
misunderstanding, and if the intensity is high, the conflict could be an effort to harm or even
destroy the other party.
Levels of Conflict
In addition to different types of conflict, there exist several different levels of conflict. Level
refers to the number of individuals involved in the conflict. That is, is the conflict within just one
person, between two people, between two or more groups, or between two or more
organizations? Both the causes of a conflict and the most effective means to resolve it can be
affected by level. Four such levels can be identified:
● The dissimilarity in the ideas and opinions of individuals result in a conflict. One needs to
adjust with each other to some extent to avoid conflicts and better relations. Conflicts and
fights must be prevented to avoid its adverse consequences like stress, anxiety and
unnecessary tensions.
● Communication has a big role to play in conflict management. It has been observed that
poor communication always results in misunderstandings and eventually conflicts. Our
communication has to be clear and precise to avoid conflicts. First yourself be very clear
what you intend to convey to the other individual.
● The thoughts must be carefully put into sensible and relevant words for the others to
understand well. Never use words which might hurt the sentiments of others and avoid
using derogatory sentences. Don’t use too complicated terminologies as the other person
might not understand it well.
● Be very clear and straightforward what you expect from the other person. Don’t always
expect the other person to understand everything on his own. Haphazard thoughts only
add on to confusions and result in displeasure and disagreements.
● if you want to meet your team member at 9 in the morning at the conference hall, please
remember to mention the correct timings along with the venue as well as the agenda so
that the participants come thoroughly prepared. Don’t just communicate for the sake of it.
● Don’t merely depend on verbal communication, instead prefer communication through
email keeping each and every member in the loop.
● Never ignore anyone just because you do not like him. It is generally observed that
conflict among individuals arises when they feel neglected or left out. Transparency is
essential at all levels for better understanding and avoiding conflicts.
● Communication must not be done with members separately but must be on a common
platform so that every one gets the same picture. Master the art of writing emails. Select
the correct font, style and be careful about the content such that the mail is self
explanatory.
● Disagreements can arise anytime so make sure that the superiors are always available to
the subordinates. At workplaces, the hierarchy must not be too complicated as it only
adds to the confusions. People do not understand whom to contact and start fighting
among themselves only. At workplaces, employees must be demotivated to interfere in
each other’s works and criticize others.
● Never be loud and always be very careful about your pitch and tone. Be polite and
convincing. Make your point very clear but do not shout on others as he might feel bad
and it might go against you. Presentations, seminars, speeches must be delivered at a
noise free zone so that the information hits the eardrums of the recipients instantly and
creates the desired impact.
● Question answer round must be kept at the end in the presentations and people must not
jump in between with their questions. It seriously offends the speaker and might result in
a fight. Be a little patient and wait for your turn to speak. Be a good listener.
● An individual must not assume things on his own and overreact on petty issues. Every
individual has the right to express his views and one must first listen to what the other
person has to say.
● When two individuals are interacting with each other, try not to speak in between unless
and until required.Always meet the other person with a warm smile. Avoid being rude
and harsh. Don’t just start shouting even if you do not agree to the other person, sit with
him face to face and make him understand his mistakes.
● Once you are through with your communication, do cross check with the other person
whether he has received the correct message or not. Wrong messages lead to confusions
and people lose their trust on each other. Make sure you are very clear and transparent
with your communication. Think twice before you speak and never offend others.
between two or more people. It is the way that you find a solution to a given problem. Resolving
conflict often isn’t straight forward and there’s no such thing as the “best” approach because this
resolution style needs to be catered to your management style as well as the team dynamic. The
objective in conflict resolution is to come to a mutual agreement and in the best-case scenario,
with a mutually beneficial result. Conflict management is all about encouraging each party (or
familiarize yourself with different styles of conflict management to find what works best for you.
In an interesting article by the Harvard Business Review, they highlight why understanding your
own, and your team members’ styles of conflict resolution is important to manage conflicts:
These different conflict resolution styles are important as an evaluation of what works for other
people, as well as what is going to work best for yourself if differing situations with different
audiences.
Conflict Instrument, which suggests five key styles for managing conflict. Before we get into
these five styles, it’s important to understand that in dealing with conflict, a person’s behavior
1. Assertiveness: The extent to which people try to satisfy their own concerns; and
2. Cooperativeness: The extent to which people try to satisfy other people’s concerns
1. Accommodating
This style is about simply putting the other parties needs before one's own. You allow them to
‘win’ and get their way.Accommodation is for situations where you don’t care as strongly about
the issue as the other person, if prolonging the conflict is not worth your time, or if you think you
might be wrong. This option is about keeping the peace, not putting in more effort than the issue
While it might seem somewhat weak, accommodation can be the absolute best choice to resolve
a small conflict and move on with more important issues. This style is highly cooperative on the
Pros: Small disagreements can be handled quickly and easily, with a minimum of effort.
Managers can build a reputation as an easygoing person, and employees will know that
Cons: Managers might be viewed as weak if they accommodate too often. Using this
technique with larger or more important issues will not solve any issues in a meaningful
2.Avoiding
This style aims to reduce conflict by ignoring it, removing the conflicted parties, or evading it in
some manner. Team members in conflict can be removed from the project they are in conflict
over, deadlines are pushed, or people are even reassigned to other departments.
This can be an effective conflict resolution style if there is a chance that a cool-down period
would be helpful or if you need more time to consider your stance on the conflict itself.
Avoidance should not be a substitute for proper resolution, however; pushing back conflict
indefinitely can and will lead to more (and bigger) conflicts down the line.
Pros: Giving people time to calm down can solve a surprising amount of issues. Time and
space can give a much-needed perspective to those in conflict, and some issues will
resolve themselves. Managers show that they trust employees to act like adults and solve
issues.
Cons: If used in the wrong situations, this technique will make conflicts worse. Managers
can seem incompetent if they overuse avoidance because employees will think that they
3. Compromising
This style seeks to find the middle ground by asking both parties to concede some aspects of
their desires so that a solution can be agreed upon.This style is sometimes known as lose-lose, in
that both parties will have to give up a few things in order to agree on the larger issue.
This is used when there is a time crunch, or when a solution simply needs to happen, rather than
more about the other person’s perspective. Compromise can set the stage for collaboration
down the road, and allows both parties to feel heard. Managers using this tactic are seen as
Cons: No one leaves completely happy. In some cases, one side might feel as though they
sacrificed too much, and be unwilling to compromise again in the future. Managers who
rely on this technique will burn up their employees goodwill and be seen as unable to
execute collaboration.
4.Competing
This style rejects compromise and involves not giving in to others viewpoints or wants.One party
stands firm in what they think is the correct handling of a situation, and does not back down until
This can be in situations where morals dictate that a specific course of action is taken, when there
is no time to try and find a different solution or when there is an unpopular decision to be made.
It can resolve disputes quickly, but there is a high chance of morale and productivity being
lessened.
Pros: Managers using this style show that they are strong and will not back down on their
principles. Disputes are solved quickly, as there is no space for any disagreement or
discussion.
Cons: Managers using this style will be seen as unreasonable and authoritarian. Handling
conflicts by crushing any dissent will not lead to happy, productive employees, nor will it
5.Collaboration
This style produces the best long-term results, at the same time it is often the most difficult and
time-consuming to reach.Each party’s needs and wants are considered, and a win-win solution is
This often involves all parties sitting down together, talking through the conflict and negotiating
a solution together.This is used when it is vital to preserve the relationship between all parties or
Pros: Everyone leaves happy. A solution that actually solves the problems of the conflict
is found, and the manager who implements this tactic will be seen as skilled.
have to be delayed while solutions are found, which might take a long time, depending on
Negotiation means discussion with the other party to try to reach an agreement. You’re free to
choose how to proceed. The law does not require you to follow any specific process or format.
Being accompanied
If you’re involved in a dispute with someone, you can try to negotiate directly with them. If it
puts you more at ease, you can ask a friend or family member to accompany you during the
negotiation.
You can also hire a professional negotiator to assist by accompanying you or by negotiating on
your behalf. The title of “negotiator” does not require any legal certification. So, you can choose
anyone you wish.
Preparing for negotiation
It is important to be well-prepared before entering into negotiations. You should:
● determine your objectives
● prepare one or more proposed solutions to present to the other person.
Even if you don’t arrive at a solution through negotiations, you haven’t lost anything. You could
try to negotiate later on, even if your dispute is before the courts. You could also try another
option, such as mediation.
The mediator must remain impartial at all times. They can’t favour one person over the other.
Nor can they provide an opinion on who’s “right” and who’s “wrong”. Instead, their role is to
help you speak with the other person to reach a satisfactory solution.
You can use mediation in any type of conflict. In certain situations, special procedures and
services have been established. This is the case when parents separate (to assist with custody,
support payments, etc.) and for small claims cases.
Conflict and negotiation: concept of negotiation; negotiation at different levels; The anchor
Negotiation is the process of discussing each individual’s position on a topic and attempting to
reach a solution that benefits both parties. We often step in and negotiate when a conflict is
taking place, but conflict doesn’t have to exist for there to be an opportunity for negotiation.
● The parties are each looking to achieve the best possible result in the interaction for
themselves
The parties are motivated and capable of influencing one another, like a union bargaining for
better working conditions. A worker doesn’t have influence over a manufacturer, but a union of
workers does, and without that influence as a factor, both parties won’t be motivated to come to
the table for discussions. Finally, the parties need to believe they can reach an agreement;
otherwise any negotiation talks will be futile.
Distributive Negotiation
Distributive negotiation operates under zero-sum conditions. Anything one party gains in the
deal is lost by the other party. There can be a winner and a loser, and parties are usually opposing
each other. Any relationship between the two parties is usually short term, as at least one party
will walk away a “loser” of sorts and animosities can build.
Integrated Negotiation
Stages of Negotiation
After the planning and strategy development stage is complete, it’s time to work with the other
party to define the ground rules and procedures for the negotiation. This is the time when you
and the other party will come to agreement on questions like
Usually it’s during this phase that the parties exchange their initial positions.
Once initial positions have been exchanged, the clarification and justification stage can begin.
Both you and the other party will explain, clarify, bolster and justify your original position or
demands. For you, this is an opportunity to educate the other side on your position, and gain
further understanding about the other party and how they feel about their side. You might each
take the opportunity to explain how you arrived at your current position, and include any
supporting documentation. Each party might take this opportunity to review the strategy they
planned for the negotiation to determine if it’s still an appropriate approach.
This doesn’t need to be—and should not be—confrontational, though in some negotiations that’s
hard to avoid. But if tempers are high moving into this portion of the negotiation process, then
those emotions will start to come to a head here. It’s important for you to manage those emotions
so serious bargaining can begin.
This is the essence of the negotiation process, where the give and take begins.
You and the other party will use various negotiation strategies to achieve the goals established
during the preparation and planning process. You will use all the information you gathered
during the preparation and planning process to present your argument and strengthen your
position, or even change your position if the other party’s argument is sound and makes sense.
The communication skills of active listening and feedback serve the parties of a negotiation well.
It’s also important to stick to the issues and allow for an objective discussion to occur. Emotions
should be kept under control. Eventually, both parties should come to an agreement.
Once an agreement has been met, this is the stage in which procedures need to be developed to
implement and monitor the terms of the agreement. They put all of the information into a format
that’s acceptable to both parties, and they formalize it.
● A well-known cognitive bias in negotiation and in other contexts, the anchoring bias
describes the common tendency to give too much weight to the first number put forth in a
discussion and then inadequately adjust from that starting point, or the “anchor.” We
even fixate on anchors when we know they are irrelevant to the discussion at hand.
● Economists Amos Tversky and Daniel Kahneman first documented the anchoring bias in
an experiment involving a roulette wheel marked with integers ranging from 0 to 100.
Each participant witnessed a spin of the roulette wheel. They were then asked whether
they thought that the percentage of United Nations member countries that was from
Africa was greater or smaller than the number spun on the wheel. Next, they were asked
to make an estimation of the true percentage.
● Participants who saw the wheel stop on the number 10 guessed, on average, that the
actual percentage of African countries belonging to the United Nations was 25%. By
contrast, those who saw the wheel stop on the number 65 guessed, on average, that the
percentage from Africa was 45%. In the experiment, a clearly random number
nonetheless had a dramatic impact on people’s judgments.
● Even experts, such as real estate agents, can be powerfully affected by anchors in
negotiation, research shows. Why are anchors so effective? When conditions are
uncertain, high anchors draw our attention to the positive qualities of the item or
individual (as in the case of a salary negotiation) being discussed, and low anchors draw
attention to flaws, according to Columbia Business School professor Adam Galinsky.
● Dropping Effective Anchors:
● Research on the anchoring bias has shown that negotiators may be able to gain an edge
by making the first offer and anchoring the discussion in their favor. The decision of
whether to make the first offer generally should be based on two factors: your knowledge
of the zone of possible agreement, or ZOPA—that is, the range of options that should be
acceptable to both sides—and your assessment of the other side’s knowledge of the
ZOPA.
● When you believe the other party likely knows more than you do about the size of the
ZOPA, you will have difficulty anchoring effectively. Before dropping an anchor in such
situations, arm yourself with as much information as possible.
● If both sides have a strong sense of the zone of possible agreement (ZOPA), as in the case
of a longtime relationship between a supplier and customer with open books, anchors are
unlikely to have a strong impact.
● If neither side knows much about the size of the zone of possible agreement (ZOPA), you
may be able to effectively drop an anchor, though you could risk being too concessionary
or too demanding.
● If you know a great deal about the asset up for discussion, you can make an aggressive
first offer with confidence and expect that your offer will anchor the discussion to your
advantage.
Bargaining is a process of reaching a mutually acceptable solution among all parties to the
conflict at the end of the negotiation process. Bargaining strategies help to resolve the conflict
through proper communication and understanding of the situation.
● The negotiation that seeks one or more settlements than create a win-win situation is
called Integrative Bargaining Strategy.Regarding intra-organizational behavior, all
things being equal integrative bargaining is preferable to distributive bargaining.
Integrative bargaining builds long-term relationships and facilitates working together in
the future.
● It bonds negotiators and allows each to leave the bargaining table feeling that he/she has
achieved a victory. Distributive bargaining, however, leaves one party a loser.
● It tends to build animosities and deeper divisions when people have to work together on
an ongoing process.
FAQS
● Objective
1. To protect human beings from being subject to unduly long hours of bodily strain
of manual labor.
2. Seeks to provide the employees should work in healthy and sanitary conditions
3. As far as manufacturing process will allow and that precautions should be taken
for their safety and for the prevention of accidents
● Scope and applicability
1. Act extends to whole india, applies to all factories, inc. factories belonging to the
central or any state govern. Unless otherwise excluded.
2. Benefits available to persons who are employed in the factory and be covered
within the meaning of the term”worker” as defined in the act.