SYLLABUS

03 March 2023 10:30

Unit I fatima mam Page 1

INDUSTRIAL RELATIONS
16 April 2023 18:17
Concept of Industrial Relations in points
1. Sure, here are some points explaining the concept of
industrial relations:
2. Industrial relations refer to the relationship between
employers, employees, and the government in the
workplace.
3. It encompasses a broad range of issues related to the
employment relationship, including wages, working
conditions, job security, employee benefits, employee
rights, industrial disputes, collective bargaining, labour-
management relations, and workplace conflict.
4. The primary objective of industrial relations is to create a
harmonious and productive relationship between
employers and employees, while ensuring that the rights
and interests of both parties are protected.
5. The key players in industrial relations include employers,
employees, trade unions, government, and other
stakeholders such as customers, suppliers, and
shareholders.
6. Industrial relations are shaped by various factors,
including economic conditions, technological changes,
globalization, labour laws, and social and political factors.
7. Effective industrial relations require open and honest
communication between employers and employees, the
promotion of employee participation in decision-making,
and the development of effective conflict resolution
mechanisms.
8. Industrial relations are essential for the sustainable
growth and development of businesses and the economy
as a whole, as they help to promote stability, fairness, and
social justice in the workplace.
9. In summary, industrial relations play a critical role in
shaping the employment relationship and creating a
mutually beneficial environment for both employers and
employees.
Major indicators of Industrial Relations in points
Here are some major indicators of industrial relations:
• Absenteeism
• Grievance
• Lockouts
• Strikes
• Turnover
• Discipline.
Unit I fatima mam Page 2
Scope of Industrial Relations in points
Sure, here are some points on the scope of industrial relations:
1. Collective Bargaining: This involves negotiations between employers and
employees, usually represented by a trade union, to establish terms and
conditions of employment such as wages, benefits, and working conditions.
2. Labour Laws: The scope of industrial relations also covers the legal
framework that regulates employment relationships. Labour laws define
the rights and obligations of both employers and employees, and establish
procedures for resolving disputes.
3. Workplace Conflict Resolution: Industrial relations also involves
developing effective strategies for managing workplace conflicts and
disputes, such as grievance handling procedures and mediation processes.
4. Employee Relations: This refers to the ongoing relationship between
employers and employees. It includes developing effective communication
channels, implementing policies and procedures, and promoting employee
participation in decision-making.
5. Human Resource Management: The scope of industrial relations also
includes the management of the human resources in an organization,
including recruitment, training and development, performance
management, and compensation and benefits.
6. Workplace Health and Safety: Industrial relations also encompasses
workplace health and safety, including the development of policies and
procedures to ensure that employees work in safe and healthy
environments.
7. Employee Welfare: Industrial relations also covers employee welfare
programs, such as health insurance, retirement benefits, and other
employee benefits that are designed to improve the quality of life of
employees.
8. Industrial Democracy: The scope of industrial relations also includes the
promotion of industrial democracy, which refers to the participation of
employees in decision-making processes that affect their work and the
workplace.
9. Industrial Relations Research: Finally, industrial relations encompasses the
study of employment relationships, including research on workplace
practices, labour market trends, and the impact of labour laws and policies
on employees and employers
ABSENTEEISM
16 April 2023 20:57
Absenteeism refers to the habit of regularly not showing up or being
present at work, school or any other scheduled activity without any
valid or acceptable reason. It can be a significant problem for
organizations, as it can lead to decreased productivity, increased
costs, and a negative impact on the overall work environment.
There can be various reasons for absenteeism, including illness,
family issues, personal problems, lack of job satisfaction, poor
working conditions, or job stress. It is essential for employers to
identify the root cause of absenteeism and take appropriate measures
to address it, such as implementing flexible work arrangements,
improving the work environment, providing support to employees,
or offering incentives to encourage attendance.
Managing absenteeism is crucial to maintaining a healthy and
productive workforce. Organizations need to have clear policies and
procedures in place to manage absenteeism effectively, including
guidelines for reporting absences, monitoring attendance, and
addressing persistent absenteeism. By promoting a positive work
culture, offering support to employees, and effectively managing
absenteeism, organizations can ensure a productive and engaged
workforce
Unit I fatima mam Page 3
DISADVANTAGES OF ABSENTEEISM
Absenteeism can have several negative consequences for both individuals and
organizations. Some of the disadvantages of absenteeism are:
1. Decreased productivity: When employees or students
are absent, their work or studies can be
disrupted, leading to decreased productivity and
efficiency.
2. Increased costs: Absenteeism can lead to increased
costs for organizations, such as the cost of
hiring replacement staff or paying overtime to
other employees to cover the workload.
3. Negative impact on team morale: When employees are
regularly absent, it can affect team morale and
create resentment among other team members who
have to cover for them.
4. Loss of income: Absenteeism can result in a loss
of income for employees who may miss out on pay or
opportunities for career advancement.
5. Health issues: Regular absenteeism can be a sign
of underlying health issues, such as chronic
stress or mental health problems, which can impact
an individual's overall well-being and quality of
life.
6. Negative impact on reputation: For educational
institutions or companies, high rates of
absenteeism can negatively impact their reputation
and make them less attractive to prospective
employees or students.
Overall, absenteeism can have significant negative
consequences for individuals and organizations and
needs to be managed effectively to maintain a
healthy and productive workforce.
STRIKES AND LOCKOUTS
STRIKES
Strike is the very powerful weapon used by trade unions and
other labour associations to get their demands accepted. It
generally involves quitting of work by a group of workers for
the purpose of bringing the pressure on the employer so that
their demand gets accepted. When workers collectively cease
to work in a particular industry, they are said to be on strike.
A lockout declare in consequence of
an illegal strike or a strike is declared in consequence of an
illegal lockout shall not be deemed to be illegal.{ Section 24(3)
of disputes act 1947 }.
 Advantages of strikes
1. Ability to bring attention to a cause or issue
2. Pressure on employers
3. Collective bargaining power
4. Show of unity
5. Legal protection
 Advantages of lockouts
1. Protection of workers
2. Reduced risk of equipment damage
3. Compliance with safety regulations
 Similarities btw. Lockout & strike
1. Both are used as means of exerting pressure on the other party
2. Both can cause loss of productivity
3. Both can leave negative impact on people associated with it
4. Both the action are taken in case of labor disputes
5. Both can create tension and hostility btw. Employees and management.
Unit I fatima mam Page 4
LOCKOUTS
a\c to section 22 of act lockout of factory & industry must be done
only after introducing prior notice to concern employees. Lockout
means" the temporary closing of a place of employment, or the
suspension of work or the refusal by an employer to continue to
employee any no. of persons employed by him.
❖ Lockout is the weapon of employer whereas strike is weapon in the
hands of labor
❖ Lockout is a way\process by which the employer can make their
employees to come to their way & to make accept them to the
management terms & conditions.
❖ The rights of lockout has been made to work labor peaceful &
settlement of industrial disputes.
❖ This tactics of withholding employment typically used by employers to
hinder union organization or to get leverage in industrial dispute.
❖ It is not only accomplished by literally looking employees out of the
workplace but it can also be achieved through work stoppage, layoffs,
or hiring of non- union replacement workers.
 Disadvantages of strikes
1. Loss of income
2. Damage to business reputation
3. Loss of productivity
4. Legal issues
5. Tension between workers & management
 Disadvantages of strikes
1. Significant financial loss
2. Breakdown in communication and increased hostility
3. Loss of company's reputation and customer relation
LABOUR TURNOVER
20 February 2023 12:46

Labour turnover can be defined as the overall change in the no of people

employed in the business entity during a particular period of time. It takes into
consideration the no. of existing personnel, new joinees, & the total no. of
workers as listed in the payroll at the end of a given period.
A high labour turnover rate is considered to be unfavourable for the
organisation stability and can even result in a temporary shutdown or strike. The
entities therefore take-up human resource as an integral part of resources.

 Causes labour turnover

• Avoidable • Unavoidable
1. Substandard working condition 1. Death
2. No job security 2. Accident
3. Unsatisfactory wages and allowances 3. Illness
4. Improper health & safety measures 4. Marriage
5. Poor transport facilities 5. Family migration
6. Conflict with supervisor or co-worker. 6. Domestic issues

 Effects of labour turnover

• Positive • Negative
1. Improves organisational culture 1. Decreases morale
2. More talented personnel 2. High Production cost
3. Less expensive resources 3. Training expenses
4. Infusion of fresh ideas 4. Replacement cost
5. Better skills & qualifications 5. Hampers productivity

 Strategies to reduce labour turnover

1. Work on companies \organisation interpersonal
Unit I fatima mam Page 5
1. Work on companies \organisation interpersonal
relationships
2. Revise wages & allowance policy
3. Improve personal & HR policy
4. Enhance working conditions
5. Develop a performance based reward system

Unit I fatima mam Page 6

INDUSTRIAL DISCIPLINE
21 February 2023 12:59

Industrial discipline refers to orderly working of the

employees of an industrial undertaking in accordance with
established rules regulation & convention.
It can be defined as the orderly conduct of
affairs by the members of an industrial organization who
adhere to its necessary regulations Bec. They desire to
cooperate harmoniously in forwarding the end wage. The
group has in view & willingly recognise to do this, their
wishes must be brought into a reasonable union with
requirement of the group in action.

 Code of discipline in Indian industry

The 15th session of the Indian labour conference

held in July 1957, discussed the problem of
discipline in industry & formulated certain
principles for removing employee grievances &
settling industrial disputes by mutual negotiation &
conciliation & voluntary arbitration. The code of
discipline has come into force. From June 1958.

 The following principles were discussed :-

1. There should be no lockout, strikes without notice.
2. No deliberate damage to plant or property.
3. No act of violence , intimation or investigation
4. Existing machinery for the settlement of disputes should be utilized
5. Award & agreements should be speedily implemented.
6. No agreement violating cordial industrial relation should be entertained.
in The above principles were accepted &
Unit I fatima mam Page 7
 in The above principles were accepted &
incorporated in the code of discipline. This was ratified by 4 central national
labour organisation(INTUC, UTUC, AITUC,HMS).
On behalf of workers & by the employers federation of India, the all India
organization of industrial employers & all India manufacturer organisation on
behalf of the employers.

Unit I fatima mam Page 8

SYLLABUS
20 March 2023 11:34

unit II FATIMA MAM Page 9

INDUSTRIAL DISPUTES
03 March 2023 10:13

MEANING OF INDUSTRIAL DISPUTES CAUSES OF INDUSTRIAL DISPUTES

Industrial disputes refer to conflicts or disagreements between
employers and employees or between different groups of
employees in an industrial or workplace setting. These disputes THERE ARE THREE MAIN CAUSES :-
can arise due to various reasons, such as wages, working 1. ECONOMIC- maximum disputes in any industry arises due to
conditions, job security, and management policies. Industrial economic causes. Directly or indirectly economic causes are at the
disputes can lead to strikes, lockouts, and other forms of back of any industrial disputes.
protests, which can disrupt productivity and affect the overall ◊ low wages
functioning of an organization. Effective management of ◊ Dearness allowances
industrial disputes requires open communication, fair ◊ Industrial profit
negotiation, and a willingness to compromise from both sides ◊ Bonus
to find a mutually beneficial solution. ◊ Working hours

2. MANAGERIAL- Success of any organization depends largely on

FORMS OF INDUSTRIAL DISPUTES
managerial capacity. Growth of the organization is based on the
There are various forms of industrial disputes that can occur in
policy of the management.
an organization, including:
◊ Non- recognition of unions
1. Strikes: A strike is a form of industrial action where
◊ Violation of agreements
employees collectively refuse to work as a protest against
an employer's policies or working conditions. ◊ Ill treatment by managers and supervisor
2. Lockouts: A lockout is a situation where an employer ◊ Defective recruitment procedures and
prevents employees from entering the workplace as a employee development policies
means of exerting pressure in a labor dispute. ◊ Wrongful practices such as demotions &
3. Slowdowns: A slowdown involves a deliberate reduction in termination
work pace by employees as a form of protest.
4. Boycotts: A boycott is a form of protest where employees
or consumers refuse to use or buy products or services 3. POLITICAL- these are the main points of political cause:-
provided by a particular company. ◊ Influence of politics
5. Picketing: Picketing involves employees protesting outside ◊ Trade union movement
their workplace to put pressure on management to meet ◊ Government inclination to support
their demands. management
6. Work-to-rule: Work-to-rule is a form of protest where
employees only perform the minimum work required by
their employment contract, rather than going beyond 4. SOCIAL- these are the main points of social cause:-
what is strictly required. ◊ Everyone wants respect
7. Gherao: Gherao is a form of protest where a group of ◊ Ill treatment
employees surrounds a manager or senior executive to ◊ Unhealthy working environment
demand a resolution to their grievances. ◊ Working hours
8. Overall, these forms of industrial disputes can have
significant negative consequences for both employees and
employers, and effective resolution requires careful
negotiation, communication, and compromise from both
parties. IMPACT OF INDUSTRIAL DISPUTES

❖ PRODUCTIVITY
CONSEQUENCES OF INDUSTRIAL DISPUTES ❖ INDUSTRIAL HARMONY
Industrial disputes can have various negative consequences for ❖ GOODWILL
both employees and employers, as well as the wider community. ❖ ABSENTEEISM
Some of the consequences of industrial disputes include: ❖ LABOUR TURNOVER
❖ Loss of productivity: Industrial disputes can lead to a loss of ❖ STRIKES\LOCKOUT
productivity due to work stoppages, strikes, and other forms of
protest, which can affect an organization's ability to meet its goals IMPACT ON EMPLOYERS
and objectives. ❖ The employers also suffer heavy losses through stoppage of work,
❖ Financial losses: Work stoppages and other forms of industrial reduction in sale & loss of market due to non/ short supply of
action can lead to significant financial losses for both employers and the product.
employees, including loss of wages, revenue, and profits.
❖ Damage to reputation: Industrial disputes can damage an IMPACT ON WORKERS
organization's reputation and image, leading to a loss of trust and ❖ The workers are also badly affected in more than 1 ways. They
confidence among customers, shareholders, and the wider lose their wages for the strike period @ times, they lose their
community. employment also.
❖ Increased stress and anxiety: Industrial disputes can create a IMPACT ON SOCIETY/PUBLIC
stressful and anxious work environment for employees, leading to a ❖ The public or society too is not spared. Industrial unrest creates
negative impact on their mental health and well-being. law & order problem. Even when the disputes are settled, strike
❖ Job loss: In some cases, industrial disputes can lead to job losses, & bitterness continue to linger endangering happy & social
particularly if a company is forced to downsize or restructure due to industrial relations.
financial losses. IMPACT ON NATIONAL
❖ Economic impact: Industrial disputes can have a wider economic ❖ The industrial dispute also affect the national economy
impact, particularly if they lead to supply chain disruptions or adversely when labour or equipment in the whole or any part of
affect key industries. the industry rendered either by strike or lockout (national

unit II FATIMA MAM Page 10

 financial losses.
❖ Economic impact: Industrial disputes can have a wider economic
impact, particularly if they lead to supply chain disruptions or
affect key industries.
❖ Overall, industrial disputes can have significant negative
consequences for individuals, organizations, and society as a whole.
Effective conflict resolution and management is critical to
minimizing these consequences and maintaining a productive and
harmonious work environment
OUTCOMES OF INDUSTRIAL DISPUTES
unit II FATIMA MAM Page 11
IMPACT ON NATIONAL
❖ The industrial dispute also affect the national economy
adversely when labour or equipment in the whole or any part of
the industry rendered either by strike or lockout (national
dividend suffers a lot). It lessens the demand of good produced
by other industries produced by industries on other hand, if the
struck industry is such that supply goods & services to other
industry, it lessens the supply of raw material.
 STEPS FOR COLLECTIVE BARGAINING
It has intense process that can be stressful & difficult for all parties
involve this process goes through a no. of stages which can be summed
up as follow.
1. Identifying the issue & preparing the demand
2. Negotiation
3. Coming to a tentative agreement.
4. Accepting & ratifying the agreement.
5. Administering the agreement.

Advantages of collective bargaining disadvantages of collective bargaining

1. Employees have a larger voice 1. Lengthy process
2. Improves workplace condition & protect employees 2. Comes @ higher cost
3. Establishes rights & responsibilities of employer & employees. 3. Employers may be forced to negotiate & accept unfavourable terms.

unit II FATIMA MAM Page 12

SYLLABUS
16 April 2023 22:23

unit III niharika mam Page 13

GRIEVANCE
16 April 2023 22:24

MEANING CAUSES OF GRIEVANCE

A grievance refers to a complaint or dissatisfaction that an
employee or group of employees has regarding their working
conditions, terms of employment, or treatment at the workplace.
Grievances can arise due to various reasons, such as discrimination,
harassment, non-payment of wages, unsafe working conditions, or
other workplace issues. Grievances can be raised by an individual
employee or a group of employees and may be formal or informal.
Effective handling of grievances is essential for maintaining a
positive work environment and ensuring that employees feel valued
and respected. Grievances that are not resolved effectively can lead
to industrial disputes and other forms of workplace conflict.
GRIEVANCE HANDLING
PROCEDURES
Here are some points outlining the typical grievance handling
procedures in organizations:
1. Informal approach: Employees may first attempt to resolve their
grievance informally, by speaking to their immediate supervisor
or manager to find a solution.
2. Formal written complaint: If the issue cannot be resolved
informally, the employee may submit a formal written complaint
to the human resources department or designated person,
outlining the details of their grievance.
3. Acknowledgement: The HR department acknowledges receipt of
the grievance in writing, outlining the steps to be taken to
address it.
4. Investigation: An investigation is conducted to gather all the
relevant facts and evidence related to the grievance.
5. Meeting: A meeting is scheduled between the employee and
relevant managers or HR personnel to discuss the grievance and
attempt to reach a resolution.
6. Decision and outcome: After considering all the facts and
evidence, a decision is made and communicated to the
employee in writing. The outcome could be the resolution of the
grievance, dismissal of the grievance or a request for more time
to investigate.
7. Appeals: If the employee is not satisfied with the decision, they
may have the option to appeal the decision within a certain
timeframe and following a specific process.
8. Follow-up: After the grievance has been resolved, follow-up
actions are taken to ensure that the issue does not arise again
and to maintain a positive work environment.
There are various causes of grievances that can arise in
the workplace. Some of the most common causes of
grievances include:
1. Discrimination: Discrimination based on gender, race, age, religion,
or other factors can lead to grievances if an employee feels unfairly
treated or discriminated against.
2. Harassment: Harassment, such as sexual harassment, bullying, or
verbal abuse, can lead to grievances if an employee feels that they
have been subjected to such behaviour.
3. Non-payment of wages or benefits: Non-payment or delayed
payment of wages, bonuses, or other benefits can lead to
grievances if employees feel that they are not being fairly
compensated for their work.
4. Unfair treatment: Unfair treatment, such as unequal opportunities
for promotion, favouritism, or biased performance evaluations, can
lead to grievances if employees feel that they are not being treated
fairly.
5. Poor working conditions: Poor working conditions, such as
inadequate safety measures, lack of proper equipment, or
insufficient rest breaks, can lead to grievances if employees feel
that their health and safety are at risk.
6. Lack of communication: Lack of communication or feedback from
managers or supervisors can lead to grievances if employees feel
that they are not being listened to or their concerns are not being
addressed.
Overall, effective management of grievances requires proactive
communication, listening, and action on the part of employers to
address employees' concerns and create a positive and harmonious
work environment.

Effective grievance handling procedures are essential to creating

a fair and respectful workplace for employees, and to prevent
grievances from escalating into more serious issues such as
industrial disputes.

unit III niharika mam Page 14

SYLLABUS
16 April 2023 22:24

UNIT IV FATIMA MAM Page 15

TRADE UNION
16 April 2023 22:34
WHAT IS TRADE UNION?
A trade union, also known as a labour union, is an organization
that represents and protects the interests of workers in a
particular industry or occupation. The primary purpose of a trade
union is to promote and protect the rights and interests of its
members, including better wages, improved working conditions,
job security, and better benefits.
Trade unions negotiate with employers on behalf of their
members to secure better wages, benefits, and working
conditions. They also provide legal assistance and advice to their
members on workplace issues, such as unfair dismissal,
discrimination, and safety concerns.
Trade unions are typically funded by membership dues paid by
members. They operate democratically, with members electing
their leaders and representatives, and decision-making
processes are often based on a voting system.
Trade unions have played a significant role in the labour
movement throughout history, with many labour laws and
workplace protections being a result of their efforts. Today, trade
unions continue to be an important part of the workforce,
advocating for the rights and interests of workers in various
industries and occupations.
PROBLEMS OF TRADE UNION
There are several problems that trade unions face, including:
1. Declining membership: In many countries, the membership of
trade unions has been declining over the years. This can lead
to a decrease in bargaining power and influence.
2. Legal restrictions: Some countries have laws that limit the
ability of trade unions to operate, organize, or engage in
collective bargaining.
3. Globalization: The growth of globalization has created
challenges for trade unions, including competition from low-
wage countries, outsourcing, and offshoring.
4. Technological changes: Automation and other technological
changes have led to job losses in some industries and reduced
the number of workers who can be represented by unions.
5. Changing nature of work: The rise of the gig economy and the
increasing number of workers who are self-employed or
contract workers make it difficult for trade unions to organize
and represent these workers.
6. Resistance from employers: Some employers are opposed to
trade unions and may take steps to prevent workers from
joining or organizing.
7. Internal conflicts: Trade unions may also face internal
conflicts, including disagreements over strategy, leadership,
or priorities.
UNIT IV FATIMA MAM Page 16
OBJECTIVES OF TRADE UNION
1. To protect workers' rights and interests: The primary objective of trade
unions is to protect the rights and interests of workers, including better
wages, improved working conditions, job security, and better benefit
2. To promote job security: Trade unions aim to promote job security for their
members by negotiating for better employment contracts, job protection,
and measures to prevent layoffs.
3. To improve working conditions: Trade unions strive to improve working
conditions for their members, such as health and safety standards, working
hours, and other employment-related issues.
4. To provide legal assistance and advice: Trade unions offer legal assistance
and advice to their members on workplace issues such as unfair dismissal,
discrimination, and safety concerns.
5. To promote training and development: Trade unions promote training and
development opportunities for their members to improve their skills and
increase their employability.
6. To participate in industrial relations: Trade unions participate in collective
bargaining with employers to negotiate better working conditions, wages,
and benefits for their members.
7. To promote social and economic justice: Trade unions aim to promote social
and economic justice by advocating for workers' rights, promoting equality
and fairness in the workplace, and challenging discrimination and inequality.
Overall, trade unions serve as a vital tool for workers to protect their rights,
improve their working conditions, and achieve fair treatment in the
workplace.
FUNCTIONS OF TRADE UNION
❖ Wage & salary bargaining
❖ Fight for continuous improvement in employee benefits
❖ Improving working conditions
❖ Improving welfare healthcare & recreational facilities
❖ Increasing rest period holidays & paid leaves
❖ Decreasing working hours, work load & hazardous working conditions
❖ Improving career & salary rise & job security
❖ Protecting employees against unjust adjacent of management
MILITANT FUNCTIONS OF TRADE UNION
One set of activity performed by trade union for betterment of possession of their
member, in relation to the employer. The aim of such activities is to ensure &
adequate wages & also to ensure better condition of work environment & treat
with employees.
FRATERNAL FUNCTIONS OF TRADE UNION
Another set of activities performed by trade union aims at rendering help to its
member in times of need & improving their efficiency. Trade unions try to foster a
spirit of corporation & promote friendly industrial relation & diffuse education &
culture among their members. They take up welfare measure to improve morale &
generate self confidence among them. They also arrange for legal assistance to its
member if necessary.
COLLECTIVE BARGAINING
12 April 2023 10:27

Collective bargaining- it refers to the negotiation of employment terms importance of collective bargaining in industrial disputes:
btw employers & group of workers. Employees are normally represented by
a legal union during collective bargaining. 1. Promotes cooperation and communication: Collective bargaining
helps to establish a relationship of cooperation and communication
Features of collective bargaining:-
1. It is a process of negotiating the employment term btw an between workers and employers.
employer & a group of workers. The process takes place 2. Resolves conflicts: It provides a mechanism for resolving conflicts
between company management & labour union.
2. Concerns & issues that may come up during collective
and disputes that may arise in the workplace, without the need for
bargaining improve working condition , salaries , etc. strikes or other forms of industrial action.
3. The goal of collective bargaining is to come up with collective 3. Ensures job security: Through collective bargaining, workers can
bargaining agreement or contract.
4. There are several types of collective bargaining including negotiate for job security and protection against unfair dismissal or
composit, concessionary , distributive , integrative & productive redundancy.
bargaining.
4. Ensures fair compensation: Collective bargaining allows workers
• Composite bargaining- it focuses on other issues such as
to negotiate for fair compensation, such as wages, benefits, and
working conditions, job security & other corporate policy.
working hours, which can help to reduce income inequality.
These may include hiring & firing practices & discipline.
5. Enhances productivity: When workers are satisfied with their
• Concessionary bargaining- as the name suggest working conditions, they are more likely to be productive, which
concessionary bargaining focuses on union leader making can benefit both workers and employers.
concessions in exchange of job security. This is common 6. Improves working conditions: Through collective bargaining,
during economic downturn or a recession. workers can negotiate for improved working conditions, such as
• Distributive bargaining- this is characterised by benefitting health and safety measures, which can benefit both workers and
one party financially at the expense of the other. This can employers.
come through increased bonuses, salaries or any other 7. Fosters a sense of empowerment: Collective bargaining can help
financial benefits. It favours workers over employer. to empower workers by giving them a voice in decisions that affect
• Integrative bargaining- each party tries to benefit through their lives and livelihoods
integrative bargaining. It is often referred to as the form of
win- win bargaining.
• Productivity bargaining- these type of bargaining revolves
around compensation & the productivity of employee. Labour
union leaders often use higher salaries & compensation as a
way to boost employee productivity which leads to higher
profits & value for the employer.

UNIT IV FATIMA MAM Page 17

SYLLABUS
17 April 2023 06:58

UNIT V NIHARIKA MAM Page 18

 WORKERS PARTICIPATION IN
MANAGEMENT
17 April 2023 07:05

Worker participation in management refers to the involvement of
workers in the decision-making processes of an organization. Here
are some key points on the importance of worker participation in
management:
1. Increases motivation and job satisfaction: When workers
feel that they have a say in decisions that affect their work,
they are more likely to be motivated and satisfied with
their jobs.
2. Improves communication: Worker participation in
management can improve communication between
workers and managers, leading to better understanding
and cooperation.
3. Increases productivity: When workers are involved in
decision-making processes, they are more likely to be
committed to the success of the organization, leading to
increased productivity.
4. Enhances creativity and innovation: Worker participation
can bring new ideas and perspectives to the table, leading
to creativity and innovation in the workplace.
5. Promotes a sense of ownership: When workers are
involved in decision-making processes, they feel a sense of
ownership and responsibility for the success of the
organization.
6. Fosters trust and respect: Worker participation in
management can build trust and respect between workers
and managers, leading to a more positive and supportive
work environment.
7. Ensures better decision-making: Worker participation can
lead to better decision-making, as workers have first-hand
knowledge of the issues and challenges facing the
organization.
DIFFERENT FORMS OF WORKER'S PARTICIPATION
There are several forms of worker's participation in management, including:
1. Joint consultative committees: These are committees consisting of representatives
from management and worker's groups who meet regularly to discuss issues of
mutual concern.
2. Works councils: These are committees elected by workers to represent their
interests and participate in decision-making processes at the workplace.
3. Co-determination: This refers to a system where workers are represented on the
board of directors of the organization, giving them a say in decision-making
processes at the highest level.
4. Team-based participation: This involves workers being organized into self-
managing teams, where they have more autonomy and decision-making power
over their work processes.
5. Quality circles: These are groups of workers who meet regularly to identify and
solve problems related to quality, productivity, and safety.
6. Employee stock ownership plans: These are plans where workers are given an
ownership stake in the organization, which can give them a say in decision-making
processes.
7. Profit sharing: This involves sharing a portion of the organization's profits with
workers, which can give them an incentive to improve productivity and contribute
to the success of the organization.
These different forms of worker's participation can be used in combination or
separately, depending on the organization's goals and the preferences of workers
and management.

SIGNIFICANCE OF WORKERS PARTICIPATION

Worker's participation in management is significant for several reasons, including:
1. Improved decision-making: When workers have a say in decision-making
processes, decisions are likely to be more informed and effective, as workers
have firsthand knowledge of the issues and challenges facing the
organization.
2. Increased motivation and job satisfaction: Worker's participation in
management can increase workers' motivation and job satisfaction, as they
feel more involved and valued in the organization.
3. Better communication and cooperation: Worker's participation can
improve communication and cooperation between workers and
management, leading to a more positive and productive work environment.
4. Enhanced creativity and innovation: Worker's participation can bring new
ideas and perspectives to the table, leading to creativity and innovation in
the workplace.
5. Higher productivity and quality: When workers feel empowered and
involved in decision-making processes, they are more likely to be
committed to the success of the organization, leading to higher productivity
and quality.
6. Increased employee loyalty and retention: Worker's participation can foster
a sense of ownership and responsibility among workers, leading to
increased loyalty and retention.
7. Reduced conflicts and grievances: Worker's participation can help to
identify and resolve conflicts and grievances before they escalate, leading to
a more harmonious and cooperative work environment.

Overall, worker's participation in management can lead to a more efficient,

effective, and satisfying work environment for both workers and
management

UNIT V NIHARIKA MAM Page 19