MBA HR02 UNIT I

By: Prof. Amit Kumar

According to International Labour Organization, Industrial relations comprise relationships between the state on one hand and the employers and employees organization on the other, and the relationship among the occupational organizations themselves.

According to J.T. Dunlop,

Industrial relations are the complex interrelations among managers, workers and agencies of the government

Industrial relations are outcomes of employment relationships in an industrial enterprise. Industrial relations system creates rules and regulations to maintain harmonious relations. The government intervenes to shape the industrial relations through laws, rules, agreements, terms, charters etc. Several parties are involved in the Industrial relations system. Industrial relations are a dynamic and developing concept, not a static one. Industrial relations include both individual relations and collective relationships.
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To maintain industrial democracy based on participation of labour in the management and gains of industry. To raise productivity by reducing tendency of high labour turnover and absenteeism. To ensure workers participation in management of the company by giving them a fair say in decisionmaking and framing policies. To establish a proper channel of communication. To increase the morale and discipline of the employees.
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To safeguard the interests of the labour as well as management by securing the highest level of mutual understanding and goodwill between all sections in an industry. To avoid all forms of industrial conflicts so as to ensure industrial peace by providing better living and working standards for the workers. To bring about government control over such industrial units which are running at a loss for protecting the livelihood of the employees.

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Uninterrupted Production Reduction in Industrial disputes High morale Reduced wastage & Contributes to economic growth and development

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Economic causes Organizational causes Psychological causes: Social causes Political causes Technological Factor & Global factor

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3. 4. 5. 6. 7.

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Sound personnel policies Participative management Responsible unions Employee welfare Grievance procedure Constructive attitude Education and training imparted to the employees & Creating a proper communication channel to avoid grievances and misunderstandings among employees.
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1. 2. 3. 4. 5. 6.

Dunlop's System Theory Human relation Theory Psychological Theory Sociological Theory Gandhian Theory Pluralist Theory of Flanders
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Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labour relationship: 1. Environmental or external economic, technological, political, legal and social forces that impact employment relationships. 2. Characteristics and interaction of the key actors in the employment relationship: labour, management, and government. 3. Rules that are derived from these interactions that govern the employment relationship. 4. Focuses on participants in the process, environmental forces and the output
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 Delicate and tricky Handling is radically different Physiological needs Safety and security needs & Egoistic needs- higher order needs, self esteem
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The general impression about a person is radically different when he is seem as a representative of management from that of the person as a representative of labour The management and labour see each other as less dependable The management and labour see each other as deficient in thinking regarding emotional characteristics and inter- personal relations.

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Industry is social world Various individuals and groups Difference in individual attitudes and behaviour create problems Social change cannot be overlooked Role of state and political parties & Industrial relations are determined by power

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IR are based on fundamental principles of truth and non- violence The worker should seek redressal of reasonable demands only through collective action Strike- peaceful and non- violent method Avoid strike Avoid formation of union Strike- last resort & Voluntary arbitration
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From the very early times, the Indian works of arts and crafts were badly damaged during the invasions of foreign invaders, which lasted for about 700 years. The commercial character of the east India Company did not change the conditions of workers. After the abolition of the monopoly of the East India Company in 1883, the British Industrialists and merchants were able to develop some industries (Cotton, jute, railways, Plantation, Coal, Mines etc.) are trade in India.
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Many other events happened which accelerated the pace of industrial relations during the period, The success of Russian Revolution in 1917. ILO was established in 1919 and it influenced through its conventions and recommendations. AITUC was established in 1920. The happening of Carnatic and Birmingham mills in which Mr. B.P. Wadia was arrested in 1923. The Workmen's Compensation Act 1923. In 1924 left wing emerge on the Indian political horizon. In 1924 labour party govt. was formed in U.K.
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British Industrialists of Lancashire and Birmingham put pressure on govt. The Indian Trade Union Act 1926 was promulgated. The Trade Dispute Act 1929 was passed. Royal commission on Labour (1929-31) was formed which made a comprehensive study of Indian Labour problems regarding health, safety and welfare of workers and made recommendations of far reaching consequences. The Payment of Wages Act 1936. The minimum wages Act 1948 was passed. The employee State Insurance Act 1948 Was passed. The Factory Act 1948. The employee Provident Funds Act 1952 The payment of Bonus Act 1965 The payment of Gratuity Act 1972.
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The state has an important role to play in industrial relations. it affects industrial relations directly or indirectly. it affects industrial relations directly through legislations and laws it makes while indirectly through the consultations of other agencies such as ACAS, ER, CROTUM etc. In India, the role played by the State is an important feature in the field of industrial relations and State intervention in this area has assumed a more direct form. The State has enacted procedural as well as substantive laws to regulate industrial relations in the country.
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The International Labour Organization (ILO) is a United Nations agency dealing with labour issues, particularly international labour standards and decent work for all. Almost all (185 out of 193) UN members are part of the ILO. As of 2012, 185 countries in the UN are members of the ILO. The ILO was established in April 11, 1919. Its First assembly took place in Washington on April 29, 1919.

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There are followings: Full employment and the rising of standards of living. The employment of workers in the occupation in which they can have the satisfaction of giving the fullest measure of their skill and make their contribution to the common well being. The provision, as measure to the attachment of this end and under adequate guarantees for all concerned, of facilities for training and the transfer of labour including migration for employment and settlement. Policies in regard to wages and bonus and other conditions of work calculated to ensure a just share of the fruits of progress to all and a minimum living wage to all employed and in need of protection.
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The effective recognition for the right of collective bargaining. The extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care. Adequate protection by the life and health of workers in all occupations. Provision for child welfare and maternity protection. The provision for adequate nutrition, housing and facilities for recreation and culture. The assurance of educational and vocational opportunity.
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Thanks

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