Course: Industrial Management

Unit 2 : Human & Industrial Relations

Prof. S B Pawar
spawar1@mgmu.ac.in
 Course: Industrial Management
Unit 2 : Human & Industrial Relations

Course Code: - 20UME608D

Theory: 2 Hrs. /week

Evaluation Scheme
Continuous Assessment: 10 Marks
Mid Semester Exam: 10 Marks
End Semester Exam: 30 Marks

End Semester Exam Duration: 2 Hours

 Industrial Relations
Industrial relation is that aspect of management which deals with the manpower of
the enterprise – whether skilled, non-skilled or managers.

Cordial and peaceful industrial relation between employer and employee is vital for
increasing productivity and economic growth of the country.

Through industrial relation only, the enterprise can move towards the welfare of the
employees and the management of the concerned enterprise.

Work of Industrial relation department may include, but not limited to:
 Deal with management and trade union in arriving at a satisfactory solutions,
 Carry out all correspondence with trade unions and government agencies
 Represent company in arbitrary cases
 Participate in negotiations
 Industrial Disputes
Case of mixed blessing:
Industrialization in a country has always contributed to:
 Employment,
 Contribution to national income & per capita income,
 Exports & economic development on one side and
 Industrial disputes on the other.

The conflict of interest between management and labor is what leads to industrial
disputes.

Management has a goal of profit maximization & on other hand, workers expect:
 Rise in income,
 Security of job,
 Protection of their skills,
 Improvement in their status and in the working conditions.
 Industrial Disputes
Case of mixed blessing:
Those who control the factors of production require:
 Strict administration,
 Closer supervision,
 Maintenance of strict discipline & Implementation of rules,
 Code of conduct & Code of discipline.

Whereas the workers demand:

 Share in capital & Voice in management,
 Freedom of expression,
 Participation in management and
 Dignity of employees.

So the people that control the factors of production and people that produce always
have different or conflicting interest which gives birth to industrial disputes.
 Industrial Disputes
Definition:
According to the Industrial Dispute Act, 1947 Section 2 (K) “Industrial Disputes mean
any dispute or difference:
 Between employers and employers or
 Between employers and workmen or
 Between workmen and workmen,

which is connected with the:

 Employment or
 Non-employment or
 Terms of employment or
 With the conditions of labor or any person”.
 Industrial Disputes
Industrial disputes are classified into four major types:
1. Interest disputes:
It is also called as disputes of interest or economic
disputes. In most cases it arises from the demands
or proposals for improvement in wages, benefits,
job security or terms or conditions of employment.

2. Grievance disputes:
Grievance or Rights Disputes are also called as
conflict of rights or legal disputes that take place
from day to day working relations.
Grievance disputes arises out of payment of wages,
fringe benefits, working hours, over time,
promotions, demotions, seniority, safety, and
health related aspects.
 Industrial Disputes
3. Unfair labour practices disputes:
The most common Labour type of dispute is the
disputes over Unfair Practices in industrial
relations. The management may discriminates
against workers on the ground that they are the
members of the trade union and they participate
in the activities of the union.

Unfair labour practice includes pressure on

employees when they exercise their rights to
organize, take part in union activity, refusal to
bargain, recruiting new employees during a strike
which is not illegal, creating an environment or
actually creating an act of force or violence or stop
communication etc.
 Industrial Disputes
4. Recognition Disputes :
It arises when the management of an organization
refuses to recognize a trade union for the purpose
of collective bargaining or to represent its member
employees in case of a conflict or dispute.

When the management dislike a particular union it

refuses to accept that trade union for the purpose
of negotiations or bargaining and then it becomes
a case of trade union victimization.

This also happens when there is already an

existing trade union or it is a case of multiple trade
unions and each making a claim for recognition.
 Industrial Disputes
Causes:
A developing country with pressure of population, per capita income, poor
infrastructure and low standard of living cannot afford to have such out of proportion
disputes and loss of working days.
1. Wages and Allowances 13. Work standards
2. Personnel Policies 14. Surplus labour
3. Retrenchment 15. Working conditions
4. Lay off 16. Change of manufacturing process
5. Leave and hours of work 17. Violation of rules or codes
6. Bonus 18. Shift working
7. Indiscipline 19. Political motives
8. Violence 20. Closure or lockouts
9. Inter Union rivalry 21. Inability to communicate effectively
10. Non-implementation of agreements 22. Refusal to recognize unions
11. Non-fulfillment of demands 23. Autocratic attitude of management
12. Workload 24. Non-implementation of labour law.
 Industrial Disputes
Resolving Mechanisms:
Industrial dispute are always harmful to all stakeholders & includes losses to
employers in production, revenue, profits & even entire plants; whereas the
employees may suffer due to loss of wages & even jobs.

Since industries are pillars to economic growth, any dispute is detrimental to rate of
growth of economy which ultimately affects the nation. Therefore, Industrial Disputes
Act, 1947 provides machinery to resolve such disputes by following ways:
1. Collective Bargaining
2. Arbitration
3. Grievance Redressal
4. Conciliation
5. Adjudication
 Industrial Disputes
1. Collective Bargaining:
It is the most effective method of resolving industrial disputes. It occurs basically
through Works Committee i.e. when representatives of both workmen & employer
meet to settle the differences which may be due to disputes in wages, work rules, etc.

Since both parties have their representatives, they can collectively bargain to protect
their interests and reach a settlement.

2. Arbitration:
It is method of settlement of a dispute wherein a neutral third party (appointed by
both parties) apprehends the bargaining situation after listening to both parties &
studying all information. An award is made on such settlement that binds the parties.

Arbitration is effective as a means of resolving disputes because it is relatively

expeditious as compared to court.
 Industrial Disputes
3. Grievance Redressal:
A grievance may be defined as a sort of dissatisfaction to workman with any aspect of
the organization wherein he is employed. The Industrial Disputes (Amendment) Act,
2010 has substituted a new chapter to establish Grievance Redressal Committee
(GRC)- an effective tool to resolve industrial disputes:
 Every industrial establishment having twenty or more workmen shall have one or
more GRC for resolution of individual grievances.
 The GRC shall consist of equal number of members from the employer & workmen.
 The chairperson of the GRC shall be selected from the employer and from among
the workmen alternatively on rotation basis every year.
 The total number of members of the GRC shall not exceed six and there shall be
one woman member in the GRC.
 Industrial Disputes
4. Conciliation:
Conciliation is a process to resolve the dispute where representatives of workers and
employers are brought together before a third party (conciliation officer) with a view
to convince them to arrive at mutual settlement.

The conciliation officer basically acts as a catalyst who deals with parties separately
and collectively in order to provide an effective solution to the dispute. The
appropriate government may appoint one or more conciliation officer, charged with
the duty of mediating in and promoting the settlement of industrial disputes.

Section 12 of Act provides the duties of conciliation officer wherein the conciliation
officer is required to hold conciliation proceedings in case of any industrial dispute or
where the dispute relates to a public utility service and a notice under section 22.

Other duties include investigation of disputes, appropriate steps to settle the dispute,
submission of reports to appropriate government, etc.
 Industrial Disputes
5. Adjudication:
Industrial disputes can be resolved by way of adjudication i.e. settlement of an
industrial dispute by labour court or industrial tribunal.

The appropriate government may refer a dispute to adjudication depending on the

failure of conciliation proceedings. Section 10 of the Industrial Disputes Act, 1947,
provides for reference of a dispute to the court of inquiry or labour court or industrial
tribunal.

The decision of a court of inquiry or labour court or tribunals is binding on both the
parties. The Act also provides for rules regarding the composition and powers of the
court of inquiry, labour courts and tribunals.
 Relations with subordinates, peers and superiors
Although some careers require less
interaction than others, all jobs require
interpersonal communication skills.

Shows like Office-Office & movies like The

Intern offer glimpses into the world of
workplace relationships. These humorous
examples often highlight the dysfunction
that can occur within a workplace.

Since many people spend as much time at

work as they do with their family and
friends, the workplace becomes a key site
for relational development.
 Relations with peers, superiors & subordinates
Relations with Peers:
The first category is communicating with peers because one can respond &
reciprocate with peers very easily and very firstly. There are working at the same level
like us and that makes it comfortable to talking & interacting.

Another reason of comfort may be that the peers normally have similar problems and
they can empathize very well with each other.

Relations with Superiors:

The second category is communicating with superiors, they are the one who are
working at higher level than us as per concern of knowledge or experience and
probably intelligent quotient.

Superiors may expect a respectful treatment from us white interacting with them. We
can take more time to interact with them directly because of expectation barriers.
 Relations with peers, superiors & subordinates
Relations with subordinates:
The third category is maintaining a relationship with subordinates this provides us with
opportunities to mentor our subordinates, get the work done through them or
guiding them for relevant tasks or goals.

Subordinates may be lesser in age, experience or knowledge; that may necessitates

the support from their superiors. Responses from us to subordinates are important in
order to complete the professional tasks in the team.

What shall have been done to act balanced in all three roles?
 Relations with peers, superiors & subordinates
What shall have been done to act balanced in all three roles?
Peers:
 Try to be a good peer,
 Try to build up long term relationships
 Value the opinion of your peers
 Be genuinely interested in growth of the peer
 Maintain healthy and transparent competition

Superior:
 Try to be a good superior
 Set a high benchmark for your conduct
 Set higher targets and help team to achieve it
 Develop the platform for your subordinates to express
 Recognize the efforts of your subordinates
 Characteristics of Group Behavior
Main Features of Individual Behavior
Performance of an individual is affected by his own characteristics like qualification,
abilities, motivation, nature etc.
 Every individual has a unique behavior.
 Individual collects and forms groups within which they live.
 Individuals differ and therefore paid differently.
 difference in individual are classified as:
1. Individual variables
2. situational variables
 Characteristics of Group Behavior
Main Features of Individual Behavior
Individual variables: Situational variables:
 Physical characteristics  Physical environment
 Intellectual factors  Workplace & its layout
 Temperament  Method of work
 Character  Organizational set-up
 Experience  Kind & style of supervision
 Age and Gender  Types of incentives
 Aptitude and personality characteristics  Social environment
 Design/condition of work equipment
 Characteristics of Group Behavior
Characteristics of Group Behavior:
A group is any number of people who:
1) have a common purpose or objective
2) interact with each other to accomplish their objective
3) are aware of one another
4) perceive themselves to be part of the group

 Organizations has formal & informal group. Formal groups are formed from
functional requirements, while informal groups are formed by employees themselves
due to social & security needs, common interests & other psychological factors.

 An employee behave differently in a group. Group influences the attitude &

behavior of an individual.

 Each group has its own cultural pattern & individual for stay in this group must
confirm to this culture, if he has to remain in the group.
 Characteristics of Group Behavior
Characteristics of Group Behavior:
 Group behavior may be beneficial as well as detrimental for the organization and
management depending upon the attitude of the group. Generally chances are more
for detrimental nature.

 Groups also differ in their degree of cohesiveness. Cohesiveness of any group

depends upon status, size, location & nature of the group.

 A group is formed on the basis of appeal or attraction of people towards similar

attitude, common objects or goals. Common attitude and values may be political,
religious, literature, language, work, aesthetics, traditions, authority etc.

 Group dynamics is another significant characteristics of group behavior that simply

means “Human behavior under group influence’. Group dynamics refers to the forces
operating in the group.
 Characteristics of Group Behavior
Characteristics of Group Behavior:
 Group dynamics is the social process by which people interact face to face in small
groups. Group dynamics focuses a team work, wherein small member groups remain
in constant touch with each other & contribute effectively towards achievement of
the goals.

 Ultimately groups may produce good or bad effects in the organization. The groups
are formed because everybody wants companionship, job satisfaction & social
protection.
 Characteristics of Trade Unionism
Characteristics of Trade Unionism :
The association formed by the workers are known as “Trade Unions”.

A trade union may be defined as association or union of workers engaged in a

particular trade and formed chiefly with the object of helping the members in times
of distress and getting their grievances settled & legitimate rights established.

Trade unions are also seen as moral institutions which will uplift the weak and
downtrodden and render them the place, dignity and justice they deserve.

Trade unions generally raise demands for higher wages, better working conditions,
fringe benefits, promotional opportunities and safeguards in most cases, demands
are directed against the management.
 Characteristics of Trade Unionism
Characteristics of Trade Unionism :
Workers join the trade unions to protect their job interests that includes:
1. Economic: To get livable wages
2. Job safety: Job security & freedom from management’s arbitrary actions
3. Social affiliations: To remain the part of social groups
4. Self-esteem: To have voice in the system
5. Status & self-fulfillment: To satisfy psychological needs

Functions of the trade unions includes:

1. Social service
2. Wage bargaining
3. Safety of the job
4. Develop cooperation among employees
5. Protect workers from delay in payments, poor working conditions
6. Bargain for share in profits & participation in management
 Grievance Redressal Mechanisms
Grievance:
It is a formal complaint filed by an aggrieved employee regarding dissatisfaction faced
during the job. A grievance can be raised either by individuals, groups or union.

Causes for a grievance primarily be:

 Related to company policies & procedures
 Related to nature of work
 Payment related issues
 Employee relations either with colleagues or manager

Difference between complaint and grievance:

A complaint is any dissatisfaction on part of an employee related to the job.
When a complaint remains unattended, it becomes a grievance.

The impact of an unattended grievance can be huge, as it may lead to a legal dispute
and could even affect the reputation of the organization.
 Grievance Redressal Mechanisms
Significance of Grievance Redressal Mechanism:
Grievance Redress Mechanism is part and parcel of any administration. No
administration can claim to be accountable, responsive & user-friendly unless it has
established an efficient & effective grievance redress mechanism. In fact, the
grievance redress mechanism of an organization is the gauge to measure its efficiency
and effectiveness as it provides important feedback on working of the administration.
- (Ministry of Personnel, Public Grievances & Pension)

1. Birla Group:
https://www.birlacellulose.com/policies_reports_files/policies_reports_pdf_26_1600432701.pdf
2. Infosys:
https://www.infosys.com/about/esg/social/employee-wellbeing/resolution-hubs.html
3. Indian railways:
https://railmadad.indianrailways.gov.in/madad/final/home.jsp
 Labour Welfare
Labour welfare is the voluntary efforts by the employers to provide best conditions of
employment in their own industries.

Objective of introducing labour welfare scheme is to secure on improved standards of

living for the workers, which results in the increase in their productive efficiency.

Aims of labour welfare schemes may include:

1. Making employees healthier, sound thinking.
2. Motivate people to carry out production in a better way.
3. Improve & maintain employees morale & loyalty.
4. Keep workforce in a competition with other organization.
5. Maintain better employee-employer relations.
6. Meet the social, recreational, & cultural needs of employees
7. Reduce labour turnover, absenteeism.
 Labour Welfare
Welfare Measures:
1. Economic welfare measure:
a. Health services & first aid
b. Paid holidays, reduced hours of work
c. Profit sharing
d. Pensions scheme
e. Insurance scheme, including group insurance
f. Subsidized lunch
g. Loans on reduced rate of interest

2. Recreational Measures:
a. Games & sports
b. Recreational clubs
c. Cultural programs
d. Social get-together
 Labour Welfare
Welfare Measures:
3. Facilitate Welfare Measures:
a. Housing
b. Transport
c. Canteen
d. Company stores for inexpensive shopping
e. Sale of company products on discount
f. Educational facilities
g. Rest rooms
h. Safety measures
i. Measures to reduce fatigue
 Worker’s participation in Management
Introduction:
Worker’s participation in management refers to the participation of the workers in the
decision making process of the organization.

This has incredible positive impact on the mental & psychological health of the
workers, and it also enhance loyalty of the workers towards the organization.

Concept of worker’s participation in management is based on the human relations

approach to management which brought about a new set of values to workers and
management.

Through worker’s participation in management, workers can share their ideas, views,
and contribute to the decision making process.
 Worker’s participation in Management
Characteristics:
1. Participation implies practices that increase the scope for employees’ share of
influence in the decision making process with the assumption of responsibility.

2. Participation presumes willingly acceptance of responsibilities by the employees.

3. Workers participate through their representatives in the decision making process.

Though workers are participating through their representative, it should not be mixed
with collective bargaining.

Worker’s participation in management is based on mutual trust, information sharing

& collective bargaining is more power play & creating pressure on management,
negotiations.

4. Workers are mostly affected by the decision making process, so they have a right to
give their opinion.
 Worker’s participation in Management
Characteristics:
5. It can be formal or informal, however it shall have a system of communication. In
formal participation system, various committees and councils come into the pictures
whereas informal participation may be like supervisor consulting workers on matters
like leave, promotion, transfer etc.
 Worker’s participation in Management
Level of participation:
1. Informative participation: This refers to the management’s sharing of
information with the workers on matters related to workers such as balance
sheets, production & financial health of the company.

2. Consultative participation: Workers can give their views on the matters related to
them, but acceptance or non-acceptance of their opinion depends upon the
employers.

3. Associative participation: This improved form of consultative Participation.

Here, it is considered that this is the moral duty of the employer to acknowledge,
accept & implement the unanimous decisions of employees.

4. Administrative participation: In this decision is already made and implemented

by the workers. Here degree of sharing the power and responsibility by the
worker is more as compared to the other levels.
 Worker’s participation in Management
Level of participation:
5. Decisive participation: here decisions on matters like production, employee
welfare etc are taken by the worker & management jointly after a discussion.
THANKS