Industrial Relations

Lecture Overview

• Nature of IR

• Need for good relationship between management and workers

• Approaches to Industrial Relations

• Stakes of parties

• Proactive strategy to IR

• Role of HR department
 Nature of IR

Industrial Relations: “Concerned with the relationship

between management and workers and role of
regulatory mechanism to resolve disputes between
employer and workers”

“IR is concerned with the system, rules and

procedures used by unions and employers to
determine the reward for effort and other conditions of
employment to protect the interests of the employed
and their employers, and to regulate ways in which
employers treat their employees”
 Nature of IR

• IR covers

1) Collective bargaining

2) Role of management, unions and

government

3) Mechanism of resolving disputes

4) Grievances and disciplinary policy and

practices

5) Labour legislation
 Importance of IR

• Moral dimension

• IR protect right of managers

• Handling disciplinary proceedings

• Fairness in practices and working

relations
 Approaches To IR

Unitary approach

Pluralistic approach Industrial Relations

Marxist approach
 Approaches To IR
Unitary Approach

• Based on mutual cooperation, individual treatment, shared

goals and team work

• Everyone gains when there is common interest and goals and

promotion of harmony

• Conflict is destructive and unnecessary

• Direct negotiations with employees

• No need to involve government, and unions to resolve conflict

 Approaches To IR
Pluralistic Approach

• There is competing interests, management’s role is to act as

mediator amongst competing interests groups

• Trade unions are representative of employee interests

• Concessions and compromised between management and

unions

• Conflict between management and union is good for

productive work environment and innovation

• Unions balance interest of employees and employer

• Government interferes in form of regulations to protect the

right of society and employees

• Crux: Conflict is inevitable and needs to be contained with in

the social mechanism of conciliation, collective bargaining, and
arbitration
 Approaches To IR
Marxist Approach

• Conflict is inevitable but it is because of capitalist society

• Conflict is not because of competing interests of employees

and management but division with in society between people
who own resources and people who offer labour

• Industrial conflict is because of social and political unrest

• Trade unions are forum to react to capitalism exploitation and

bring social revolution

• Trade unions make employees (labour) position more strong in

capitalistic society

• All strikes are legitimate, fair and political

• Regard state interventions through legislation is to protect the

owners
 Parties to IR

Employers
Employees

Employer-
Employees Employers
employee relations
Association Associations

Government Courts and

Tribunal
 Factors Affecting IR

Internal Factors

1. The attitude of management to unions and employees

2. The attitude of employees and unions to management
3. The attitude of employees to unions
4. The strength of unions
5. The extent to which agreed and effective procedures and rules
exist within company to resolve disputes and handle disciplinary
matters
6. The competence of managers to deal with employees issues

External
1. Strength and effectiveness of employers’ associations
2. The pay and employment situations at local and national level
3. The legal framework in which IR operates
 Role of HR Department in IR

• Motivated and competent workforce is responsibility of HR

• Through effective recruitment, work conditions, job designs, safety

and health environment, training and compensation HR department
satisfies employee and organization needs

• Through these efforts it contributes to quality of life of workers

• Workers with better quality of life less likely to resist, involve in

disputes and go on strikes
 Summary

• Nature of IR

• Need for good relationship between management and workers

• Approaches to Industrial Relations

• Role of HR department
• Stakes of parties

• Proactive strategy to IR

• Role of HR department
Trade Unions
 Lecture Overview

• Nature of Trade Unions

• Why employees join unions

• Factors leading to unionization

• Role of HR department
• Union tactics

• Tactics to remain union free

 Trade Unions
“Unions are volunteer organizations of workers or employers
formed to promote and protect the interests through collective
actions”
Definition of Unions include

1. Combination of workers or employers

2. Could be permanent or temporary
3. Regulate relationships among workers, workers and
employers or among employers

Strategic Choices before managers

1. Allow unions or remain union free
2. If want to remain union free then what to do?
3. If allow unions what type of relationships want?
4. Tactics to negotiate with unions
 Why Employees Join Unions

1. To protect against exploitation

2. Dissatisfaction (psychological contract)

3. Lack of power

4. Union Instrumentality
 Factors Leading to Unionization

Personality, interests, and

preferences

Expectations that work will fulfill

personality, interests, and
preferences i) employment
contract ii) psychological contract

Influence of
Satisfaction Work situation management

Dissatisfaction with work situations Attempt to

resolve situation
independently

Union instrumentality

Unionization
 Strategic Choices for Unions
1. Bread and Butter vs Political objectives

2. Adversarial vs Cooperative Role

3. Traditional issues vs New Services

Union Tactics
1. Organizing drive

2. Strike

3. Political patronage

4. Blackmail
 Tactics to Remain Union Free

Effective first line Open Effective personnel

supervisors communication research

Effective personnel Union Healthy and safe work

planning and selection free environment

Effective training and Effective Effective employer and

development remuneration employee relationship

Adopted from: Aswathappa. Human Resource Management, Text and Cases, 2008, p. 561
 HR practices and Unions

HR practices negate the existence of unions because of following

reasons

• HR seeks employee relationships on individual basis (Pay and

performance)

• HR attempts for socialization of workforce means harmony

amongst workers and between management and workers,
emphasize authority of management

• Training programs attempts to bring loyalty and pro

management attitude

• Team based work environment

• Merit based selection and promotion