INDUSTRIAL

RELATIONS
Define Industrial Relations

Industrial relations means the nature of relationship

between the employer and employee in an industrial
organization.
According to Pro.Dunlop, "industrial relations defined
as the complex of interrelations among workers,
managers and Government".

Biswanath Ghosh "Industrial relations is an art, the

art of living together for purposes of production ."
 Define Industrial Relations (contd.)

V.B Singh, IR is a set of functional interdependence

involving historical, economic, social, psychological,
demographist, technological, occupational political and
legal variables .

According to Encyclopedia Britannica, " Industrial relations

include individual relations and joint consultation between
employers and work people at the place of work, collective
relations between employers and the organizations and the
trade unions and the part played by the state in regulating these
relations."
Industrial Relations in Global Context

• "IR" may be defined as the means by which the various interests involved in the labour
market are accommodated, primarily for the purpose of regulating employment
relationships.
• IR is essentially collectivist and pluralist in outlook.
• It is concerned with the relationships which arise at and out of the workplace (ie,
relationships between individual workers, the relationships between them and their
employer, the relationships employers and workers have with the organizations formed to
promote and defend their respective interests, and the relations between those
organizations, at all levels).
• Industrial relations also includes the processes through which these relationships are
expressed (such as, collective bargaining; worker involvement in decision-making; and
grievance and dispute settlement), and the management of conflict between employers,
workers and trade unions, when it arises.
 Industrial Relations in Global Context
These relationships and processes are influenced by the government and its agencies
through policies, laws, institutions and programmes, and by the broader political, social,
economic, technological and cultural characteristics of each country.
The IR policy, legal and institutional framework in a particular country is developed
through bipartite consultative processes (ie, between employer and worker
representatives, and by them, individually, with government) and tripartite consultation
and cooperation (involving government and the social partners).
IR outcomes are a series of rules which apply to work, setting down minimum (and
other) wages and terms and conditions of employment for workers.
These employment conditions can cover hours of work, leave, training, termination of
employment and the like, as well as issues related to occupational safety and health,
social security (sometimes), and conditions applying to special categories of workers.
These rules also define the roles and responsibilities of the parties, individually and
collectively (eg, through legislation; collective labour agreements; decisions by
arbitrators and courts; and enterprise work rules).
 Industrial Relations & HRM
• IR can be distinguished from HRM, which is essentially a bipartite process, not
involving the State. The traditional emphasis of IR has been to achieve collective
outcomes at national and/or sector/industry levels which are then applied to each
enterprise.
• HRM is focused directly at the level of the enterprise and seeks to align the interests
of managers, individual workers and groups of workers around certain mutually
agreed corporate objectives, in order to achieve competitive advantage in the market
place.
• The values underlying HRM policies and practices are essentially individualistic and
are concerned with maximizing organizational integration, worker commitment,
workplace flexibility, efficiency, innovation and quality. Considerable emphasis is
therefore placed on staff selection and induction, leadership and motivation, ongoing
training and development and intrinsic and extrinsic rewards to improve individual and
group performance.
• HRM presents a challenge to IR, because it can operate to undermine the role of
trade unions at enterprise level by emphasizing the primacy of the relationship
between managers and individual workers. In reality, however, it is possible to
harmonize IR and HRM policies and practices in ways which can strengthen
outcomes for both.
 INDUSTRIAL RELATIONS INCLUDES

1. The relations between

The term "Industrial employers and employees at
relations" has been the plant level.
variously defined by
different writers. It 2. The relation between the
various unions.
may be seen that
the basic feature of 3. The relations between
the various employers or their organizations
definitions of IRs and trade unions at various level
mentioned above, in (Level of plant, region or
spite of the industry and national level)
differences in words, 4. The relation between the state
remain the same and the unions.
thus industrial 5. The relation between the
relations includes: employers and the government.
 Functions of IRS system

Industrial relations system fulfils at least three major functions:

1 . It defines the relative rights and responsibilities of workers,
managers and the state that establishes the power
relationships between them.
2. It channels and controls the responses of workers and
managers to the dislocation frustrations and insecurities
inherent in the industrial process.
3. It establishes the network of rules,other substitutive and
procedural, when govern the work place and work community.
IRs are therefore, a product of social and economical
systems, they are not the cause but the effect of social,
political and economic forces.
 Objectives of IRs:
The objectives of industrial relations are as follows:
1. To maintain and develop good employer and employee relations.
2. To maintain industrial peace.
3. To safeguard the interests of labour and management.
4. To avoid as per as possible, industrial conflicts.
5. To establish industrial democracy.
6. To help the economic development of the country.
7. To encourage collective bargaining as a means of self-regulation.
8. To help maintain discipline amongst workers.
9. To help Government in making lows.
10. To help union and management to develop constructive attitudes
to other.
 Scope of industrial relations

The scope of industrial relations include:

1. Relationship among various group of employees;

2. Collective relations between trade unions and

management. It is called union management relations.

3. Collective relations among trade unions, employers

associations and government.
 Three Actors of Industrial Relations

According to John T. Dunlop, 'Industrial societies necessarily

create industrial relations defined as the complex of
interrelations among workers, management and government.'

Thus three major participants or actors of industrial relations

viz., workers and their organizations, management and
government are identified.
 1. Workers and their organizations:

The total worker plays an important role in industrial relations.

The total worker includes working age, educational background,
family background, psychological factors, social background,
culture, skills, attitude towards others work etc. Workers'
organizations prominently known as trade unions.

The main purpose of trade unions is to protect the workers'

economic interest through collective bargaining and by
bringing pressure on management through economic and
political tactics.
 2. Employers and their organizations:

Employer is a crucial factor in industrial relations. He employs

the worker, pays the wages and various allowances, regulates
the working relations through various rules, regulations and by
enforcing labour laws.

The employer expects the worker to follow the rules,

regulations and laws. He further expects them to contribute
their resources to the maximum. The difference between the
demands of worker and employer results in industrial
conflicts.
 3. Government:

Government plays a balancing role as a custodian of the

nation. Government exerts its influence on industrial relations
through its labour policy, industrial relations policy,
implementing labour laws, the process of conciliation and
adjudication by playing the role of a mediator etc.

It tries to regulate the activities and behaviour of both

employees organizations and employers' organizations.
Three actors of industrial relations

Workers
Employer
s

IRS

Government
 Forces which influence the pattern of industrial relations

Introduction:
There are some aspects that influence the patterns of industrial
relations. These influences act, interact and reinforce one another
in the course of developing industrial relations.

Some of the aspects arc mentioned below:

1. Social aspects
2. Psychological aspects
3. Political aspects
4. Economical aspects
 1. Social aspects:

There are certain social aspects which influence the pattern of

industrial relations. such as:
a) Social status: Workers- have a different social identity and
status. As a result, there is a distance in relationship.
b) Social groups: Different social groups such as master-
servant, higher-caste, lower caste influence the pattern of
industrial relations.
c) Social values: Different social values play their role in setting
the pattern of industrial relations.
 2. Psychological aspects:

Several psychological aspects such as motivation, alienation and

morale are significant determinants of industrial relations.

(Motivation- job satisfaction, job advantages, job enrichment etc. )

3. Political aspects:

The political framework in different countries such as democratic

system, autocratic system, laissez-faire system are important
determinants of industrial relations.
 4. Economical aspects:
There are certain economic influences which provide the basic
setting as well as the broader framework for industrial
relations. The economic status of the employer, and the
workers in society differs widely which influences the pattern of
industrial relations.
Some other aspects of economic environment such as -
• Unemployment
• Inflation
• Demand for the product have a serious bearing on the
pattern of relationship in an industrial setting.
Forces which influence the pattern of industrial relations

Social Psychological

IRS

Political Economical
CONDITIONS FOR GOOD INDUSTRIAL RELATIONS

When in any industry or organization willing co-operation

emanates from employees towards the achievement of
organizational goals, there is said to be good industrial
relations.
Good industrial relations depend on a great variety of factors.
Some of the more important factors are given below:
1. History of good industrial relations:

• A good history of industrial relations means harmonious relationship

between management and workers. On the other hand, a bad history is
characterized by militant strikes and lockouts. Both have perpetuating
tendency that dose not mean they cannot change their attitude.
• The probability of conflict is greater when conflict has become accepted
as normal. The probability of peaceful relations is greater when mutual
understanding is expected to continue as a part of standard operations.

2. Economic satisfaction of workers:

• Industrial relations depend on the economic satisfaction of workers.

Much of man's conduct is dominated by the basic survival need because
he wants to survive.
3. Social and psychological satisfaction:

• Identifying the social and psychological needs of workers is a very

important step to determine the good industrial relations.
• It has been revealed by the Hawthorn; experiments a man has several
other needs besides his physical needs.
• Employment relationship is not only a economic contract, supportive
climate requires more than economic rewards.
• The supportive climate of an organization is essentially built around social
and psychological rewards.
• Worker's participation in management, job enrichment, suggestion
schemes, redressal of grievances, effective two way communication are
some social & psychological rewards.
4. Off the job conditions:

• For good IRS it is not enough that the worker's factory life alone should
be taken care of. His home life is not totally separable from his work life
and his emotional condition is not separate from his physical condition.
Each affect the other. For this reason worker's off the job conditions
should also be improved.

5. Enlightened labour unions:

• Strong and enlightened labour movement can help to promote the

status of labour without hampering the interests of management.
Labour unions always talk much of the employer's obligations to the
workers, but say very little about the worker's responsibility to the
employer.
 6. Negotiating skills of management & workers:

Good industrial relations depend on the ability of employers, organizations

and trade unions to deal with their mutual problems freely, independently and
with responsibility.

7. Public policy & legislation:

Govt. become a third major force in determining IRs.

Government intervention helps in 3 ways:

• It helps in catching and solving problems before they become serious.

• It provides formalized means to the workers and employers for emotional
release of dissatisfaction.
• It acts as a check and balance upon different management action.
8. Better education:

Better education provide proper sense of responsibility and

thus they will he less influenced by outside forces.

9. Collective bargaining:

Collective bargaining is the cornerstone of good industrial

relations though the assistance of appropriate government
agencies might be necessary in public interest.
10. Harmonious industrial relations:

The peaceful and harmonious industrial relations depend

on the desire of the employers/management to the bargain with their
employees on the basis of equality.

11. Urge on the part of employers:

Good industrial relations depend on the realization and urge on the part of
employers /managements for the promotion of their workers welfare.

12. Genuine sympathy:

Good IRs depend on the genuine sympathy of the general public towards
labour .
Conclusion:

Thus, the existence of strong, independent, responsible and

democratic trade unions and employers organizations, the
recognition of trade unions and the promotion of collective
bargaining, the machinery for the peaceful settlement of
industrial disputes, the existence of good human relations at the
level of the undertaking and the removal of discriminations of all
types based on any ground including race, religion, nationality or
language would go a long way to improve the pattern of
industrial relations in a country.
Principles of sound industrial relations

Maintenance of sound industrial relations is as crucial and difficult as

that of human relations.

Hence, the following principles should be followed to maintain sound

industrial relations:

1. Recognition of the dignity of the individual and of his right to

personal freedom and equality of opportunity.
Principles of sound industrial relations (contd.)

2. Mutual respect, confidence, understanding, goodwill and

acceptance of responsibility on the part of both employer,
management and workers and their representatives in the
exercises of the rights and duties in the operation of the
industry.

3. Similarly, there has to be an understanding between the various

organizations of employers and employees who represent the
management and workers.
 AREAS/SCOPES OF INDUSTRIAL
RELATIONS
(AREAS OF INDUSTRIAL CONFLICT)

There may be many reasons that turn to conflicts and disputes between
workers and management. The areas or scope for such industrial conflicts
can be classified in several categories; as follows:
1. Economical: Wages, increment, bonus, pension, gratuity, provident
fund etc.
2. Organizational: Working terms & conditions, working period, leave,
work system etc.
3. Personnel Management: Selection procedure, appointment,
promotion, transfer, discipline, compliance, motivation, punishment etc.
4. Welfare: Workers welfare, entertainment, sports, cultural program etc.
 AREAS/SCOPES OF INDUSTRIAL RELATIONS
(CONTD.)

5. Behavioral: Behavior patterns between management

and workers, or workers and workers.
6. Tactical & Legal: Lay-off, lockout, strike etc.
7. Institutional: Weakness of the trade unions and their
behavior, violation of the law and contract by any
party, inefficient management.
8. Political: Influence of the government on the
management, political influence and pressure on the
trade unions.
9. Social: Influences of formal and informal groups,
influences of geographical areas on the management
and workers.
MODELS OF INDUSTRIAL RELATIONS

Four major models of industrial relations,

namely:

1. Dunlopian models,

2. Marxist model,

3. Social action model, and

4. Human relations model

 DUNLOPIAN MODEL

According to the Dunlopian Model, the industrial relations

system is a sub-system of the wider society or the total
social system.

An industrial relations system at any particular time is

regarded as comprised of certain actors, certain context
and ideology which binds the industrial relations system
together and a body of rules created to govern the actors
at the place of work and work community.
 DUNLOPIAN MODEL (Contd.)

Dunlop identifies three groups of actors: workers, management and the

Government;

Thus, R = ƒ(a, i, b)

Where R = Industrial relations system,

ƒ = Function,

a= actors,

i = ideology,

b = body of rules.
 DUNLOPIAN MODEL (contd.)

1. ACTORS
In every country, workers, management and the Government all
interact to build up the country's industrial relations system.
2. IDEOLOGY
In any economy there is an ideology which is shared in common
by the government, businessmen and workers; such as
democratic capitalism, democratic socialism, free economy,
mixed economy.
3. RULES
Rules and regulation making by the Government which influence
the pattern of industrial relations.
Unitary Approach/Model

• In this approach no third party is involve in maintaining

industrial relations.
• Employer and Employee both party work for the
improvement of the establishment as a whole.
• No rules and regulation are necessary from the
government part to operate this model.
• It is a bipartite model. Management and worker both
solve their problems and depend on each other to
mitigate any problems or work together for the overall
development of the establishment.
Pluralistic Approach/Model
• Third party involvement exists in this model. Laws are there to
operate this type of model. Government rules and regulation is there
to function accordingly. In every decision third party involvement is
must. It is may be called tripartite model of industrial relations.
 MANAGEMENT ROLES:

1. Exploitative Authoritarian system

• Labour was exploited ruthlessly.
• Wages paid was barely subsistence.
• No job security.
• No welfare system.
2. Benevolent Authoritarian System
It believes in labour welfare.
3. Consultative Style
Under this style, the management consults with the
labours in different issues, even in making different
decisions.
 MANAGEMENT ROLES (contd.)

4. Participative Style.
Under this style labour is not a commodity but is a friend. Here, the
opinions of the labours have a great impact on decision making.

All the important variables of the industrial scene are integrated into the
system. So the Dunlopian approach can explain the dynamics of industrial
relations. It is also helpful in analyzing industrial conflict.
 MARXIST MODEL

Marxist model gives structural explanation of industrial

relations:
• Industrial relations occur within a dynamic conflict situation
which is permanent and unalterable so long as the
structure of society remains unchanged.
• Conflict arises because of labour market.
 MARXIST MODEL (Contd.)

• Interest of buyers and interest of sellers engages themselves in a

perpetual conflict over the distribution of revenue. Both have a
common interest in increasing total revenue. But conflict is not
reduced because actual distribution of additional increments of
revenue is determined by the power situation. There is no
automatic distribution based on a sense of equity.
• The concept of alienation is important in this model. Alienation
arises from the capitalist system. In the capitalist system labour is
sold and it is bought by the capitalist to satisfy his/her needs
rather than workers. Worker is estranged from the things he
creates & becomes dissatisfied .
 CAUSES OF DISSATISFACTION

• Two aspects are important as they represented the most

developed form of treating workers as a commodity.
• division of labour as a means of promoting wealth for the
capitalist but restricting the freedom of the worker.
• factory system of promotion as the most complete method of
domination of the worker by the capitalist.
• Alienation will not be overcome by increasing wages; it will
simply make the worker ‘a better paid slave’. Alienation will only
be overcome with the overthrow of the capitalist system when
labour not treated as a commodity.
• Conflict is endemic in the industrial situation for the Marxist- it is
an inevitable part of the wage system. Labour is alienated in the
capitalist system because it is treated as a commodity. Abolition
of private property is crucial in order to overcome alienation from
the Marxian viewpoint.
 SOCIAL ACTION MODEL

The social action model of industrial relations implies the

followings:
• The social action model is one in which actors own definitions of
the situations in which they are engaged are taken as an initial
basis for the explanation of their social behavior and
relationships.
• This theory points out the reciprocal nature of the relationship
between social structure and behaviour. Social structure limits
social action. "Thus a worker's ability to take strike action or an
entrepreneur's ability to invest may be limited by his personal
and by more general economic conditions.
 SOCIAL ACTION MODEL (Contd.)

• One of the most important features of the action

model is the attitude it adopts towards social theory. It
can better be viewed as a method of analysis rather
than a theory. It tells us, where and how to look to
explain social action; it does not tell us, what the
answer will be.
• The action approach suggests that general
explanations of social action are not possible simply
because of the nature of the subject of the social
sciences-men do not react to the stimuli in the same
way as matter in the natural sciences.
• The action approaches to pay sufficient attention to
behavioural influences.
 THE HUMAN RELATIONS MODEL:

• Industrial conflicts are due to poor social relations

such as inadequate communications.
• One of the most important finding of the Hawthorne
studies was the crucial role played by informal social
groups in the workplace.
• Although the informal social group can help to create
a climate which will frustrate the aims of management
it can also provide workers with outlets for their
emotions and sentiments.
• Absence of informal groups may be a cause of
frustration and dissatisfaction, ultimately they maybe
a cause of industrial conflict.
 Differences between Dunlopian Model and Social
Action Model

• Dunlopian Model

According to John. T. Dunlop, “Industrial relations

system is a sub-system of the wider society or the
total social system”.

• Social Action Model

The social action model points out the reciprocal

nature of the relationship between social structure
and behaviour.
 Types of Trade Unions
Trade Union means any
combination of workmen or
employees formed
primarily for the purpose of
regulating the relationship
between workmen and
employers or workmen
and workmen or
employers and employers,
or for imposing restrictive
conditions on the conduct
of any trade or business
and includes a federation
of two or more trade
unions.
• General unions: These unions
include workers with a range of
skills and from a range of industries.
• Craft Union: A craft union is the
simplest form of trade union. These
represent workers with particular
skills e.g. plumbers and weavers.
These workers may be employed in
a number of industries.
• Industrial unions: These seek to
represent all the workers in a
particular industry, for instance,
those in the garment industry.
 Objectives of Trade Union

This objectives of the trade union consists of:

 Improved economic status

 Shorter working hours

 Betterment of working and living conditions

 Income security e.g. pension, provident fund, obtaining job

security
 Better health, safety and welfare standards

 Respect for the personality of the workers – humane treatment

from supervisors and others

 A greater voice in industrial administration and management by

the establishment of industrial democracy

 Improving political status etc.
 TRADE UNION STRUCTURE IN BANGLADESH

Trade unions in Bangladesh may be divided into two

categories-Basic Trade Union and Trade Union
Federation.
Basic Trade Union- a primary organization of workers at
the working place. Usually, the trade unions at plant level
are termed basic unions.
Trade Union Federation are the body of unions from the
same or different industries.
 FEDERATION OF TRADE UNIONS

Federation of trade unions can be two types: Industrial Federation and

National federation.
1. Industrial Federation can be composed of five or more basic trade
unions related to the same type of industry, such as jute workers
federation, textile workers federation, and garments workers
federations.
2. National Federation is a federation of basic unions irrespective of
industries. A national federation may be constituted of twenty or more
basic trade unions irrespectively of the trade.
3. Confederation: At least ten national based trade union federations
constituted may, by joining themselves together, constitute a
national based confederation.