Ch-2

Farzana Ashraf
IR is defined as the relationship between the
employer and employee. The employee is
represented by the Management or Association
of Employers and the employees are represented
by Trade Unions.
 Labour relations, i.e., relations between labour union and
management.

 Employer-employee relations i.e. relations between

management and employees.

 The role of various parties’ viz., employers, employees,

and state in maintaining industrial relations.

 The mechanism of handling conflicts between employers

and employees, in case conflicts arise
 The primary objective of industrial relations is to
maintain and develop good and healthy relations
between employees and employers
 Establish and foster sound relationship between
workers and management by safeguarding their
interests
 Avoid industrial conflicts and strikes by developing
mutuality among the interests of concerned parties
 Keep, as far as possible, strikes, lockouts and gheraos
at bay by enhancing the economic status of workers
 Provide an opportunity to the workers to participate in
management and decision making process
 Raise productivity in the organisation to curb the
employee turnover and absenteeism
 Avoid unnecessary interference of the government, as
far as possible and practicable, in the matters of
relationship between workers and management
 Establish and nurse industrial democracy based on
labour partnership in the sharing of profits and of
managerial decisions
 Socialize industrial activity by involving the
government participation as an employer
 Improvement of economic conditions of workers
 State control over industrial undertakings with a view
to regulating production and promoting harmonious
industrial relations
Employees Trade Union

Industrial Employer
Employers Relations Associations

Government Courts &

Tribunals
 Among the participants to IR, employees are
considered as the most affected one by the IR system
prevalent in an organisation
 Generally, employees perceive IR as a means to
improve their conditions of employment, voice
against any grievances, exchange views and ideas
with management and participate in organisational
decision making processes
 Employees participate in the IR system through their
associations, or say, trade unions
 To redress the bargaining advantage on one-on-one
basis, i.e., individual worker vis-a-vis individual
employer by way of joint or collective actions.
 To secure better terms and conditions of employment
for their members.
 To obtain improved status for the worker in his/her
work
 To increase democratic mode of decision making at
various levels
 Employer is the second party to IR
 In the corporate organisation, employer is represented
by the management
 Management becomes responsible to various
stakeholders in an organisation including employees
 Like employees’ associations, employers also form
their associations at the local, industry and national
levels
 Represent employers in collective bargaining at the
national or industry level.
 Develop machinery for avoiding disputes.
 Provide feedback on employee relations.
 Advise member organisations on the issues relating to
IR
 Negotiating terms and conditions of employment with
the representatives of employees
 The role of government in the matter of industrial
relations has been changing along with changes in
industrial environment and management perspective
 Government tries to regulate the relationship of
employees and employers, and also keeps an eye on
both groups to keep each in line
 This relationship is enforced and maintained through
labour courts, industrial tribunals, wage boards,
investigating and enquiry committees, etc.,
P-14
 Dunlop’s Systems Approach
 The systems approach views the industrial relations
system as a sub-system of the society or the total
social system

 P-15
 Gandhiji‟s views on industrial relations are based on
his fundamental principles of truth and non-violence

 This philosophy presumes the peaceful co-existence

of capital and labour, which calls for the resolution of
conflict by non-violent, non-cooperation (i.e.,
Satyagraha), which actually amounts to peaceful
strikes in ordinary parlance.
 The employer and employee work as harmonious unit
and they work for common goal
 Hence, there is no possibility of any conflict
 Any arising conflict is seen as the result of
misunderstanding
 Thus, conflict is perceived as disruptive
 It perceives:
• Society is complex due to the presence of multiple interests of
various groups and hence, conflicts are inevitable

 Collective bargaining is a mechanism to sort out

conflicts
 Conflict is viewed as conducive for innovation and
growth.
 Strong union is necessary.
 Marxists see conflict as a product of the power conflict
between to classes: capital & labor
 Conflict arises due to the division in the society between
those who own resources and those who have only labor to
offer.
 For Marxist all strikes are political (Govt. does not play
neutral role)
 He regard state intervention via legislation & the creation of
Industrial tribunals as supporting mgt’s interest rather than
ensuring a balance between the competing groups.