Industrial relation

INTRDUCTION
Concept, meaning, objectives of industrial
relation
• Industrial relations may be defined as the relations and interactions in the
industry particularly between the labour and management as a result of
their composite attitudes and approaches in regard to the management of
the affairs of the industry, for the betterment of not only the management
and the workers but also of the industry and the economy as a whole.
• The term industrial relations explains the relationship between employees
and management which stem directly or indirectly from union-employer
relationship.
• Industrial relation is the relation in the industry created by the diverse and
complex attitudes and approaches of both management and workers in
connection with the management of the industry
• According to V. Agnihotri, “The term industrial relations explains the
relationship between employees and management which stem directly
or indirectly from union-employer relationship.”
• According to V.B. Singh, “Industrial relations are an integral aspect of
social relations arising out of employer- employee interaction in
modern industries, which are regulated by the State in varying
degrees, in conjunction with organized social forces and influenced by
prevailing, institutions. This involves a study of the State, the legal
system, workers’ and employers’ organizations on the institutional
level; and that of patterns of industrial organization (including
management), capital structure (including technology), compensation
of labour force and the forces of market on the economic level.”
• On the basisi of various analysis it should have following salient features of
industrial relations
1. Industrial relations are outcome of employment relationship in an industrial
enterprise
2. As a regulated relationship the focus of industrial relationship is on rule making by
participants to facilitate un interrupted production.
3. The worker situation may provide methods of adjustment and cooperation with
each other.
4. The government agencies involve to shape the industrial through laws,rules and
awards
5. The important actors of industrial relations are employees or their organizations,
employers and their asssociations and government.
Objectives 0f industrial relation
Industrial relations refer to the relationship between employers and employees
within an organization, as well as between employers' organizations and
workers' organizations. The objectives of industrial relations typically include:
Maintaining Industrial Peace: One of the primary objectives of industrial
relations is to establish and maintain peace and harmony between labor and
management. This involves minimizing conflicts, disputes, strikes, and other
forms of industrial unrest.
Promoting Productivity: Industrial relations aim to create an environment
conducive to high levels of productivity. By fostering cooperation and
collaboration between employers and employees, industrial relations can help
improve efficiency and output.
Protecting Workers' Rights: Industrial relations seek to safeguard the
rights and interests of workers. This includes ensuring fair wages,
reasonable working hours, safe working conditions, and opportunities
for skill development and career advancement.
Ensuring Fair Treatment: Industrial relations strive to promote
fairness and equity in the workplace. This involves preventing
discrimination, favoritism, and unfair practices in areas such as hiring,
promotion, discipline, and termination.
Facilitating Communication: Effective communication is essential for
good industrial relations. Objectives in this area include establishing
channels for open and transparent communication between management
and employees, as well as fostering dialogue and consultation on
matters affecting the workforce.
Negotiating Collective Agreements: Industrial relations involve
negotiating collective agreements between employers and employees or
their representatives. These agreements typically cover issues such as
wages, benefits, working conditions, and grievance procedures.
Resolving Disputes: Another objective of industrial relations is to provide
mechanisms for resolving disputes and grievances effectively and
efficiently. This may involve processes such as mediation, arbitration, or
collective bargaining.
Promoting Social Justice: Industrial relations contribute to broader goals
of social justice by addressing inequality, promoting inclusivity, and
advocating for the rights of marginalized groups within the workforce.
Enhancing Organizational Stability: Good industrial relations can
contribute to the stability and sustainability of organizations by reducing
turnover, absenteeism, and disruptions caused by labor disputes.
Adapting to Change: Industrial relations must also adapt to changes in
the business environment, technology, labor markets, and regulatory
frameworks. Flexibility and responsiveness are essential to effectively
address emerging challenges and opportunities.
Overall, the objectives of industrial relations aim to create a balanced and
mutually beneficial relationship between employers and employees,
fostering a positive work environment that supports both individual well-
being and organizational success.
Objectives of industrial relations
• To safeguard the interest of labour and management by securing high level
of mutual understanding and goodwill between all sections in the industry
which are associated with the process of production.
• To raise productivity to a higher level by arresting the tendency of higher
labour turnover and frequent absenteeism(obsession).
• To avoid industrial conflicts and develop harmonious relations between
labour and management for the industrial progress in a country.
• To establish and maintain Industrial Democracy, based on labour
partnership, not only by sharing the gains of the organization, but also by
associating the labour in the process of decision making so that individual
personality is fully recognized and developed into a civilized citizen of the
country.
• To bridge about government control over such units which are running
at losses or where production has to be regulated in the public interest.
• To bring down strikes, lockouts, gheraos and other pressure tactics by
providing better wages and improved working conditions and fringe
benefits to the workers.
• To bring the gap, by the state, between the imbalanced, disordered and
maladjusted social order (which has been the result of industrial
development) and the need for reshaping the complex social
relationships adaptable to the technological advances by controlling and
disciplining its members, and adjusting their conflicting interests.
• Handling Grievance: Industrial relations aim to maintain a cordial
relationship between the management and the employees by setting up
a mechanism to address the grievances of both parties.
• Mental Revolution: It emphasizes on transforming the way of
thinking of both the management and the workers. The employer must
value the worker’s contribution towards the organization and the
employees must respect the authority of the management.
• Employees’ Rights Protection: Under industrial relations, various
acts and associations were formed to safeguard the rights and interests
of the employees.
• Contract Interpretation: Industrial relations emphasizes on
providing proper training to the supervisors and the managers on the
labour law contracts to clarify any misunderstanding.
• Boosting Morale: Industrial relations emphasize on building employee’s
confidence and boosting their morale to perform better than before.
• Collective Bargaining: The worker’s representative and the management
put up their proposals in front of each other and negotiate over the same
to reach a mutual decision written in a collective bargaining agreement.
• Increasing Productivity: Industrial relations aims at improving the
efficiency and productivity of the organization by ensuring employees’
long-term retention.
Nature of Industrial Relation

• Industrial relations are concerned with the relationship between

management and workers. Industrial relations safeguards the interest
of employees. Industrial relations are concerned with the system,
rules, and procedures used by unions and employees to determine the
reward for effort and other conditions of employment,
safeguard(protect) the interests of the employees and their employer
and regulate how employers treat their employees. Industrial relations
maintain a balance with employee expectations, employer
associations, trade unions, and other social and economic institutions
of societies. Industrial relations help in resolving disputes, conflicts,
and controversies between labour and management.
• Scope of Industrial Relation
• Industrial Relations is a wide-reaching term. Different scholars have
expressed their different views on the scope of industrial relations.
According to Dale Yoder, “Industrial relations incorporate policies related to
recruitment, selection, training of workers, personnel management, and
collective bargaining.”
• According to the International Labour Organization (ILO), industrial
relations incorporate the relations between state and employers and relations
between trade unions and employers associations. According to Richard A
Lester, the scope of industrial relations is no longer limited only to trade
unions and industrial management, rather it includes all aspects of labour
such as wages, productivity, social security, management, and employee
policies. Trade Union policies also form part of it.
• In a modern organization, the industrial relations functions are
performed by the Industrial Relations Department. This function is
performed under the supervision of the Director of the Industrial
Relations department. In the performance of this function, support is
rendered by different managers and subordinates. Different important
functions performed by workers of the industrial relation department
includes:
• Management of policies and programs of industrial relations.
• Public Relational Relation Recruitment, Selection, and Placement of
labourers.
• To provide medical and health-related services.
• To maintain employment records of the employees.
• Provision of recruitment test, ability test, skill test, and intelligence
test.
• Provision of training and education program
• Industrial relations covers all kinds of formal
relationships existing in an organization. The scope of
industrial relations can be briefly classified into the
following four dimensions:
• Employer-Employee Relations
• The relationship that pertains between the business owner and the employees
of a particular company is known as the employer-employee relationship.
• Group Relations
• The interactions and communication between the workers belonging to
different workgroups are studied under group relations.
• Labour Relations
• In an organization, the relationship shared by the managers and the workers
is termed as labour relations.
• Public Relations
• Public relations or community relations is the interaction and relationship of
the organization with the society or external bodies. For long-term existence
in the business, every organization needs to maintain cordial public ties.
forms of industrial relations
• Closing the gap by the State between an unbalanced, chaotic, and
maladaptive social order (the result of industrial development) and the need
to transform complex social relations. It manages, disciplines its members,
importance of industrial relation is that its good for industries or
organizations and balances conflicting interests. As such we made an article
on the role of government in industrial relations to give you more insight
on why learning types of industrial relations are important and needed for
those especially in employment or employing people. This is not to neglect
the vital role of employees in industrial relations stressing the importance
of this discipline in public administration or management . Types of
industrial relations [answer] The three main theories of industrial relations
are the unitary, pluralist and Marxist perspectives
• .Employer-Employee Relations
• Employer-employee industrial relations refer to the working relations between workers and
employers in the workplace. Managers and subordinates rely on each other to achieve
beneficial results for the organization. As a result, the two must develop a strong relationship.
• This formal relationship between an employer and an employee is called an employment
relationship. It occurs when a person initiates employment or renders services for
remuneration under certain circumstances.
• Consensus relations between workers and employers foster economic growth and
development and contribute to increased productivity. Better efficiency means better
performance and development.
• Employees work more effectively when they have a positive connection with their
employers. They do their best to ensure the success of the project. Firms with friendly
connections succeed in maintaining output consistency.
• Good employer-employee relations are the foundation of any business. Poor employee
relations may lead to poor performance and high turnover. Employees make the most of their
talents and expertise to contribute to the company’s success when they feel valued.
• .Group Relations
• The basis of group relations theory is that the ‘group’ focuses on their
task and moves between a variety of different defensive positions
based on implicit ‘group’ wants and fears.
• Group relations provide an opportunity to learn about groups,
organizations, and social dynamics; the interplay of tradition,
innovation, and change as well as the relationship between an
organization and its social, political, and economic environment.
• Labor Relations
• Industrial relations at Work covers labor law, collective bargaining,
collective agreements, complaints, and arbitration procedures.
Participants will learn about legal aspects of employment contracts,
termination without notice, judicial termination, and termination. This
course helps participants interpret and construct collective bargaining
agreements. The grievance process will also be explored and
participants will learn about the grievance process, types of
grievances, the timing and handling of grievances, and the benefits of
grievance mediation.
• Public Relations (Community Relations)
• The interactions and relationships between an organization (that is, its
owners, managers, and employees) and society or external bodies are
known as public affairs. To survive in the industry long term, any
organization must maintain a cordial relationship with the public.
The actors in industrial relations

• Traditionally, industrial relations was the concern of ensuring good

sound relationships between the employer and employees. The three
principal actors are workers and their unions, employers, and the
government.
• Below we evaluate the Roles of employees in industrial relations and
Roles of employers in industrial relations to give you a full
understanding of everything you must know about the three actors in
industrial relations.
• 1. Employees
• Among the participants in industrial relations, the employees are the most
affected by the IR system within the organization. Employees with various
characteristics, such as commitment to work and organization, educational
background and social background, and attitude toward management, influence
and are affected by industrial relations systems.
• Employees generally see industrial relations as a means to improve employment
conditions, challenge complaints, exchange opinions and ideas
with management, and participate in the organization’s decision-making process.
• Employees participate in the industrial relations system through their
associations or trade unions. The evidence so far suggests that unions play a key
role in making his industrial relation system effective or ineffective. Trade
unions are seen as a tool for extracting concessions from employers due to their
strong political and emotional components.
• Restoring bargaining advantage via one-on-one basis, that is,
individual workers versus individual employers through collective or
collective action.
• To ensure better working and employment conditions for its members.
• To improve the status of workers at work.
• Strengthening democratic decision-making at various levels
• Nonetheless, various factors such as union membership, attitudes
towards management, competition between unions, and national and
regional strengths determine the union’s role in influencing the
industrial relations system within an organization.
• 2. Employers
• Employers are second parties to the industrial relations in a corporate
organization, employers are represented by
the management thus, management becomes accountable to various
stakeholders within the organization, including employees.
Management should view industrial relations in terms of the following
employee-management relationships: Motivate and maintain employee
motivation
• Ensure employee engagement.
• Achieve higher efficiency.
• Negotiation of working conditions with employee representatives.
• The main purposes of employers’ associations related to industrial
relations are to:
• Develop mechanisms to avoid conflict.
• Provide feedback on employee relations.
• Advise member organizations on industrial relations matters.
• 3 Government
• The role of government in industrial relations is changing as the industrial
environment and management perspectives change. For example,
governments around the world followed laissez-faire policies until the 19th
century.
• Industrial relations issues were left in the hands of workers and employers
to settle. Towards the end of the 19th century, however, the government’s
attitude turned to a kind of intervention in industrial relations matters,
given the changing circumstances of conflict between employees and
employers.
• Before long, state intervention became a reality. Every day, government
intervention in personnel affairs is rampant. Governments try to regulate
the relationship between workers and employers, monitoring both groups
and trying to bring them together. This relationship is enforced and
maintained by labor courts, labor tribunals, Wage Commissions,
investigation and inquiry commissions, etcetera.
industrialization strategy and industrial
relations
• With the changing business environment, industrial relations have undergone a
sea change. Developing and maintaining good labour relations has become a part
of organizational strategy.
• Developing Healthy Labour-Management Relations:
• The following conditions facilitate healthy labour-management
relations:
• i. A well-organised and democratic employee union that can protect employee
interests by providing job security and ensuring proper wages and benefits.
• ii. A well-organised employers union that can promote and maintain uniform
personnel policies. They should protect the interests of the weaker employers.
• iii. Mutual negotiations and consultations between the employees and the
employers. It is important to develop the collective bargaining approach, a
process through which employee issues are settled through mutual discussions.
2. Maintaining Industrial Peace:
• Industrial peace is essential to increase production and ensure healthy
relations between the workers and employers.
• The following measures help attain industrial peace:
• i. Industrial disputes can be settled with the help of legislative enactment
such as The Trade Unions Act, The Industrial Disputes Act and Work
Committees and by Joint Management Councils.
• ii. The Government should be empowered to refer disputes to
adjudication, specially when the situation gets out of hand. Government
intervention is required during frequent stoppage of production due to
long strikes or lockouts.
• iii. Forums based on the code of discipline in industry, the code of
conduct, the code of efficiency, etc. can be set up to settle disputes.
• 3. Developing Industrial Democracy:
• Industrial democracy can be established when labour is given the right to
be associated with various activities of the industry.
• Industrial democracy can be attained by:
• i. Establishing shop councils and joint management councils at the floor
and plant level to improve the working and living conditions of the workers,
enhance productivity, and encourage feedback from them. These councils
serve as channels of communication between the management and the
workers.
• ii. Recognising human rights in the industry by viewing employees as
human resources, not as commodities.
• iii. Increasing labour productivity by motivating employees to perform
better and help them improve their efforts and skills.
• iv. Providing proper work environment to help workers adapt to work.
• Changing Trends in Labour Management Relations:
• Before industrialisation, one couldn’t even dream of cordial
labour-management relations. However, organisations realised
that employee participation was needed for their survival. From
exploiting workers, organisations sought the participation of
workers in every activity.
• 1. From Exploitation to Participation:
• In the initial years of industrialisation, most organisations adopted
the authoritative style of management. There were no formal
communication channels between the management and labour.
Labour was considered a commodity. Workers were provided with
poor, unsafe working conditions and meager incomes. Workers were
not aware of their rights and their activities were strictly monitored.
• The enactment of protective legislation, changes in the economic
environment, and the growing awareness of human rights led to a
change in the management style. Organisations realised the
importance of human resources. Many organisations encouraged
worker participation to counter the challenges posed by the rapidly
changing business environment. The concept of industrial relations
began to gain in importance.
• Most organisations supported workers’ participation
in management to serve certain specific purposes such
as:
• i. Managing resistance to change among employees
• ii. Encouraging communication between the management and
workers who are a part of the decision-making process
• iii. Establishing democratic values in the organisation right from
the shop-floor level.
• Changes in the Economic Environment:
• Economic liberalisation and globalisation have had a
tremendous impact on labour-management relations.
• i. Economic Liberalisation:
• The Indian economy, which was liberalised in the year 1991,
shifted its focus from import substitution to export promotion
and domestic competition. Thus, domestic firms had to compete
with multinational firms. Firms discovered that to maintain
high quality and maximise productivity, it was important to
have a committed workforce. To have a committed workforce, it
was essential to create a sense of belongingness towards the
organisation. This made organisations work towards labour-
management relations.
• Before liberalisation, trade unions in India played a major role
in protecting the interests of the workers by using political
tactics such as strikes and gheraos. Some trade unions even
threatened the management of dire consequences if their
demands were not met. However, with most organisations
adopting a participative management style, trade unions began
to co-operate with the management. This is because the trade
unions realised that market forces and not the strength of the
trade union determined workers’ interests.
• ii. Globalisation:
• Globalisation is defined as the growing liberalisation of international
trade and investment, due to the integration of national economies.
Most workers associate globalisation with loss of jobs. They strongly
feel that globalisation has always had a negative impact on labour
relations.
• The reasons are:
• a. Multinational companies are successful in exporting jobs from the
developed countries to developing countries with the help of foreign
investments.
• b. Trade liberalisation has boosted the marketing of foreign goods
rather than domestic goods.
• c. Multinational companies extensively use technology and are less
dependent on labour.
• Priority Issues in Labour-Management Relations:
• We shall now discuss the priority issues in labour-management
relations.
• Roles and Responsibilities of the Labour Union and
Management:
• The roles and responsibilities of unions and management have
undergone a significant change in the past few years. Earlier,
unions used political pressure to force the management to
accept their demands. The management looked at unions as
negative forces that did more harm than good.