Unit-1 PPT (New) Shivani

EMPLOYEERELATIONSMANAGEMENTAND
INDUSTRIAL RELATION
(KMBHR03)
UNIT 1
Ms.Shivani sharma,AssistantProfessor,KIETSchoolofManagement,Delhi-NCR
IndustrialRelations
According to Indian Institute of Personnel Management, “Industrial
relations includes securing effective and willing cooperation from
employees and reducing conflict between employers and workers
and their representatives, the trade unions.”
In the words of Dale Yoder, “Relationship between managements and

employers or among employees and their organizations that
characterize or grow out of employment.”
Objectives of Industrial Relations
• To create healthy relations between employees and employers.
• To minimize industrial disputes.
• To generate harmonious relations among all concerned with
production process.
• To improve the productivity of workers.
• To provide workers their appropriate position by considering
them partners and associating them with management
process.
• To provide the workers their due profit share, improve their
working conditions and thereby eliminating the chances of
strikes and lockout etc.
Parties in IR
ApproachesofIR
• Unitary Approach
• Pluralist Approach
• Marxist Approach
ApproachesofIR
Unitary Approach:
• Believe in Unity.
• Conflict are non Permanent.
• Strikes to be useless and destructive
• To create Productive,effective and harmonious work culture.
• Todevelop a trustworthy,open Fair and transparent work culture.
• Restrict the role of tribunals and government.
ApproachesofIR
Pluralist Approach:
• Organization is composed of individuals.
• Conflict is rational and inevitable.
• Collective bargaining is the best method.
• Employee join trade union to protect themselves.
ApproachesofIR
Marxist Approach:
• As a product of capitalist society.
• All strikes are political in nature.
• Trade union act as means of social change.
ChallengesofIRinIndia
• Labour law varies from state to state and thus it becomes
difficult forIR managers to follow the laws strictly.
• In this cutthroat competition, dependence on contract
labours isincreasing at phenomenal rate.
• The roles of the unions are defined, but their responsibilities are
not mentioned.
• A‘protected workman’ is defined,but there are no
suchprovisions for factory managers.
ChallengesofIRinIndia
• Productivity& Flexibility are not mentioned any wherein IDAct1948.
• Formation of trade union is a fundamental right in India.
• There is a lot of misconceptions regarding ‘collective bargaining’
issueif it is fundamental right or not.
• Difference in wages of the regular employees and contract labours is
a major issue of concern.
Ms.Shivani sharma,AssistantProfessor,KIETSchoolofManagement,DelhiNCR
Industrial Relations with Economic Growth
Good industrial relations are maintained on the basis of cooperation

and recognition of each other. It will help increase production.
Wastages of man, material and machines are reduced to the minimum
and thus national interest is protected.
From Industrial Relations to Employee
RelationsManagement
Employee relations management(ERM):
• Strategic focus,
• Takes a proactive,
• Long-term view Employee-relationship management aim set
• Building relationships,
• Commitment and organizational loyalty,
• Works towards employee empowerment,
• An informal,
• Ongoing process that is beyond employee and employer organizations and
State regulations.
DifferenceBetweenIRandERM
• ERM: Employee relationship management is a process that
companies use to effectively manage all interactions with employees,
ultimately to achieve the goals of the organization. The human
resources department can play a critical role in this process, both in
terms of training and coaching managers and executives on how to
effectively establish and nurture relationships with employees and in
measuring and monitoring those relationships to determine whether
objectives are being met
• IR: The Industrial Relations encompasses the relationship between
the management and workmen and the role of a regulatory body to
resolve any industrial dispute.
ImportanceofERM
1. Establishing a link and congruency between employee contract and
the employment relationship through a psychological commitment.
2. Terms and conditions of employment to be based on the
principle of fairness and ensuring the organizational objectives as
well as individual needs and aspirations are fulfilled.
3. Developing policies,procedures,rules and regulations that are fair,just
and conform to the basic objectives and philosophy of labour
legislation.
4. Defining and clarifying performance-management expectations and
standards to enable employees to strategize and plan for the achievement
of tasksand targets set for their job positions.
5. Developing effective communication channels and systems that ensure
the information needs of employees are met.
ERM Tools
• Employee Opinion Surveys
• Training Aids
• Legal Resources
• Human Resource Information Systems
• Departmental Expertise
TradeUnion
• Trade unions are an important institution in the realm of industrial
relations. A trade union is an organization of workers or employees
that is formed mainly to negotiate with the employers on various
employment-related issues.
ImpactofTradeUnion
Impact of Trade unionon:
• Industrialization
• Capitalist
PrinciplesofTradeUnionism
• Unity: Unity is strength.
• Equality : Workers must not be discriminated against on the basis
of caste, creed or Sex.
• In regard to pay, each worker must get equal pay for equal work.
• Security : The security of the employment of their members must be
safeguarded.
ObjectivesofTradeUnions
• Ensure Security of Workers:
• Obtain Better Economic Returns
• Improve Working Environment and Welfare Measures:
• Secure Power to Influence Management
• Secure Power to Influence the Government
• To pass labour legislationthatimprovesworkingconditions;safety,welfare,
• Security and retirement benefits of the workers and their dependents;
curbing the
• Power of punishment by employers;seeking redress of grievances,etc.
FunctionsofTradeUnions
• PROTECT ECONOMIC INTERESTS.
• SOCIAL.
• POLICY AND LEGISLATIVE.
• REDRESS IN EQUALITY.
• PRECIPITATE COLLECTIVE WITHDRAWAL IN THE PURSUIT OF
SECTIONAL INTEREST.
• PRODUCTIVITY.
• ENHANCE PROFESSIONAL STATUS.
• PREPARATION FOR BARGAINING.
• ANCILLARY
TheClassificationofTradeUnions
• BYPURPOSE
Regulatory Unions
Reformist Unions
Revolutionary Unions
BYMEMBERSHIP
Craft Unions
Staff Unions
IndustrialUnions
General Unions
Phases in the Growth of Trade
Unions in India
• ThePre-independence Phase
• the first Post-independence Phase
• The Second Post-independence Phase(Mid-1960s–1980)
• The Third Post-independence Phase(1980–Pre-liberalizationEra)
• The Fourth Post-independence Phase(Post-liberalization Era)
The Structure of Trade Unions in India
• There are two types of organizations to which the trade unions
in Indiaare affiliated:
i) National federations
ii) The federation of unions
The Problems of Trade Unions in India
• The Politicization and Pro life ration of Unions
• Outside Leadership
• Inter-union Rivalry
• Intra-union Rivalry
• Small Size
• Financial Insecurity
• The Changing Demography of Workforce
Theories for the Emergence of
TradeUnionism
• REVOLUTIONARY THEORY.
• INDUSTRIAL DEMOCRACY.
• BUSINESS THEORY.
• SOCIO-PSYCHOLOGICAL THEORY.
The Recognition of Unions
• Collective bargaining is an important aspect of employer employee relation. The right of
collective bargaining is not provided for all trade unions that exists but is provided for those
trade unions which are recognized Registration of trade union is one thing and the recognition
of trade unionas a sole bargaining agent for the purpose of collective bargaining is another
thing. Number of industrial strikes broke out on the question of recognition of union.
In practice, management allows the recognized Trade Union only for negotiations and collective
bargaining. As such, recognition of trade union serves as backbone of collective bargaining. It
has been debated time and again whether a trade union should be recognized or not. This is because
there is so far no enforced central legislation on this subject, i.e., recognition of trade union.
In Kalindi and Others v. Tata Locomotive and Engineering Co. Ltd the Supreme Court held that there is
no right to representation as such unless the company ,by its standing orders, recognizes such right. The
decision was reiterated in Bharat Petroleum Corporation Ltd.v. Maharashtra General.
Kamgar Union & Ors.
TradeUnionsAct,1926
The Trade Unions Act, 1926 provides for the registration of trade
unions with a view to render lawful organization of labour to enable
collective bargaining. It also confers on a registered trade union certain
protection and privileges.
The Act extends to the whole of India and applies to all kinds of unions
of workers and associations of employers, which aim at regularizing
labour–management relations. A trade union is a combination,
whether temporary or permanent, formed for regulating the relations
not only between workmen and employers, but also between
workmen and workmen or between employers and employers.
TradeUnionsAct,1926
The main objectives of the Act are to:
i) Provide for the registration of trade unions and
ii) To accord registered trade unions a legal and corporate status,
immunity to office bearers and members from civil and criminal liability
in respect of legitimate trade union activities. The is protection is
provided for under Section 120 B, sub-section 2 of The Indian Penal
Code.
TradeUnionsAct,1926
Provisions The Act, therefore, stipulates the
following:
1. The Trade Unions Act, 1926 was enacted mainly in deference to the ILO
convention, the recognition of the right of workers to organize and also to
strengthen the bargaining power of the workers.
2. The Act aims to provide for the registration of trade unions and, in certain
respects, to define the law relating to registered trade unions. The objective
of the Act is to:
• Laydown conditions governing the registration of TUs.
• Define obligations of a registered TU
• Prescribe rights and liabilities of a registered trade union
TradeUnionsAct,1926
• REGISTRATION. Any trade union formed with at least seven members may
apply for registration to the Registrar with the following documents:
• i)A copy of the rules of the trade union
• ii)Names, occupation and addresses of members making the application
• iii)Name of the trade union and address of its office
• iv)Designation, names, age, addresses and occupation of the office
• v)Bearers of the trade union
• vi) In case already in operation—submit statement of accounts/assets and
liability statement
Industrial Democracy
• For bringing about a fundamental socio-economic change in modern pluralistic
set-up, establishment of industrial democracy is a pre-requisite. The political
democracy can be really applicable only when there is emphasis on democratic
administration of business mainly by workers.
• The traditional concept of industrial personnel management has been a division
of whole work-force into two categories: the managers, the so-called white collar
staff, representing the interests of the proprietors; and the lower level workers,
the main work-force of the establishment, representing their own opposite
interests.
• The interface between the two groups has constituted the main field, or battle-
field of industrial relations. It was supposed managers are only to manage and
give orders; while the workers are to work and carry managerial orders. It means
each group has separate and opposite interest. In this case the gap between the
management and labour can be unbridgeable and mutual distrust will increase
continuously.
Thank
You

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EMPLOYEERELATIONSMANAGEMENTAND

In the words of Dale Yoder, “Relationship between managements and

Good industrial relations are maintained on the basis of cooperation

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