Workmen Vs.

Management Employees
Workmen: Employees who are hired for
skilled or unskilled Manual or Clerical work Management employees: Employees who are hired for management and supervisory work (Planning, organizing, managing, leading)

MEANING OF INDUSTRIAL RELATIONS

The field of Industrial Relations (also called labour relations) looks at the relationship between Management and Workers, particularly groups of workers represented by a Union
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Human Resource Management

The Human Resource department obtains, develops, utilizes, evaluates, maintains and retains the right number and type of workforce for the organization

Human Resource Management

Right number and type of people: Job
Evaluation Obtain: Recruitment & Selection Develop: Training & Development Utilize: Placement (right person for the right job) Evaluate: Performance Evaluation

Industrial Relations
Maintain: Compensation (salary and
benefits) Retain: Good Company environment, employee welfare, Company culture, discipline and compliance with labour laws Note: These two functions in respect of Workmen come under Industrial Relations

Factors in analysing I.R

1. Levels of labour relations
a. Shop floor level b. Regional level c. National level 2. Ability to adapt to change 3. Legislation and regulation
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Perspective Theories of Industrial Relations

1. Unitary Perspective
2. Pluralistic Perspective 3. Marxist Perspective
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Unitary Perspective
The organization is perceived as an integral and

harmonious whole with the idea of one happy family. Management and other members of the staff share a common purpose emphasizing mutual cooperation. It demands loyalty of all employees. Trade Unions are considered as unnecessary Conflict is perceived as disruptive and the result of agitators, interpersonal friction and communication breakdown.
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Pluralistic Perspective
Organization is perceived as being made up of powerful and

divergent sub-groups Each sub-group has its own legitimate loyalties Each sub-group has its own objectives and leaders The two prominent sub-groups are Management and Trade Unions. The role of Management leans less towards enforcing or controlling and more towards persuasion and co-ordination Trade Unions are considered as legitimate representatives of employees Conflict is dealt by collective bargaining Collective bargaining is not considered a bad thing. If managed properly, it can result in positive change.
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Marxist Perspective
There is a fundamental division of interest between

capital and labour This perspective sees inequalities of power and economic wealth as the root of capitalist economic system Conflict is seen as inevitable and trade unions are a natural response of workers to their exploitation by capitalist The Marxist view is that joint management and regulation would enhance management position
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Conflict Between IR and HRM

1.
Key Differences between HRM and IR IR is collectivist and pluralist in outlook, dealing with relations between employers and Unions and between them and the state. The outcomes are standardized rules and procedures. Some of the central features of IR are freedom of association, collective bargaining, right to strike & lockout and resolution of conflict through trade unions HRM does not encompass the third party (The state). It is bipartite but individual focussed. This is evident from the key HRM subjects such as recruitment and selection, appraisal, training and development, motivation and retention of staff through rewards.
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Key differences between HRM and IR 2. IR consists of a large component of rules set by the state through laws, by the parties through negotiated agreements or by courts and tribunals HRM deals less with rules and more with policies and practices designed to maximize organizational integration, employee commitment, flexibility and quality of work. Collective bargaining and Industrial relations have a very minor role in the HRM model
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 Key differences between HRM and IR

3. IR is focussed on resolving conflicts between two parties or between one of them and the state, through negotiations and collective bargaining. HRM is designed to maximize employee commitment and quality of work. HRM believes in Managing people for common interest of the organization. HRM focuses on good management rather than external rules and collective bargaining.
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 Key differences between HRM and IR

4. HRM believes in individual employee relationship
IR involves Unions rather than individuals directly.

5. In IR the pay is based on cost of living and collective bargaining HRM seeks to introduce a performance element into pay. 6. IR is considered as a specialists function and does not involve line managers HRM also involves line managers in HRM role. 10

 Key differences between HRM and IR

7. IR focuses on loyalty and allegiance towards trade unions HRM focuses on commitment to the goals and values of the organization 8. Emergence of new categories of employees has increased the distinction between IR and HRM. IR deals with all parties as a collective body whereas HRM deals with different categories of workers in accordance with their knowledge and capability
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Summary of incompatibility between IR and HRM

IR considers the mass: HRM considers the individual In IR, pay is determined by bargaining: HRM introduces

the performance factor in determining the pay IR seeks to resolve conflicts through negotiations or through legislation: HRM seeks to match organizational goals with employees individual goals In IR, communication with employees is through Unions: In HRM it is not necessarily so
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 IR has traditionally promoted standardization

(rules & regulations): HRM is more concerned with flexibility Training, development and motivation are central issues of HRM: Conflict resolution and collective bargaining are the central issues of IR
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Harmonizing HR and IR
Preconditions to harmonize HR and IR Change in attitude of Management and workers Acknowledgement of the fact that there is a link between growth of the enterprise and growth of the employees Recognition that employer and employee interests are not only divergent but also common e.g. productivity is an important issue to both Both HRM and IR should be prepared to accommodate each other. At present, IR views HRM as its rival
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