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Industrial Relations
ADJUDICATION
The ultimate legal remedy for the settlement of an
unresolved dispute is its reference to adjudication by the
Government. Adjudication involves intervention int the
dispute by t third party intervention in the dispute by a
third party appointed by the Government for the purpose
of deciding the nature of final settlement.
On getting a report for the failure of conciliation, the
Government has to decide whether it would be appropriate
to refer the dispute to adjudication. The rational behind
this is that the developing countries can ill-afford to suffer
form loss of production due to long-drawn strikes and
lock-outs. Further, the trade union movement is yet not
strong and mature enough to adopt and rely on only
collective bargaining for protecting the interests of the
workers. Therefore, the necessity for intervention by the
Government is felt. This is the Government does by
making reference of the dispute to the adjudication
machinery.
More Notes on ADJUDICATION
CONCILIATION
Conciliation is the most important method for prevention
and settlement of industrial disputes through third party
intervention. It is an attempt to reconcile the views of
disputants to bring them to an agreement. Conciliation is
generally understood as the friendly intervention of a
neutral person in a dispute to help the parties to settle
their differences peacefully.
Conciliation may be described as. “The practice by which
the services of a neutral third party are used in dispute as
a means of helping the disputing parties to reduce the
extent of their differences and to arrive at an amicable
settlement or agreed solution. It is process of rational and
orderly discussion of differences between the parties to a
dispute under the guidances of a conciliator.”

It is a process by which representatives of the workers and

the employers are brought together before a third person
or a group of persons with a view to persuade them to
arrive at an agreement among themselves by mutual
discussion between them.

As a process of peace-making in industrial relations,

conciliation aims to brig about the speedy settlement of
disputes without resort to strikes or lock-outs, and to
hasten the termination of works stoppages when these
have occurred. Its function is to assist the parties towards
a mutually acceptable compromise or solution. For this he
relies on reasoning and persuasion.

The conciliator is a neutral party, who without using force,

seeks to find some middle course for mutual agreement
between the disputants so that the deadlock is brought to
an end at the earliest possible moment and normal peace
restored. “ He tries to bridge the gulf between the two
contending parties and if he does not succeed, he at least
tries to to reduce the differences, as far as possible, by
tending advice to the parties to bring them close to a
settlement. Thus, he is a mere go between-the catalytic
agent who creates an opportunity for the parties to meet
face to face to resolve there differences amicably. His duty
is not to suggest solutions of the dispute but to make
suggestions with alternative solutions. He tried to join the
parties with a fresh viewpoint and different outlook. He is
supposed to act as a catalyst to the process of reaching an
agreement. The element of compromise, of give and
take,is still present.” he persuades rather than orders or
forces the party to accept his viewpoint. He never gives his
judgment on the issues. The conciliator substitutes his
judgment for that of the parties with regard to the
desirable terms of settlement. He may suggest possible
lines of solution, or himself propose terms of settlement if
such a course is in accordance with national practice but it
is of the parties to accept or not to accept his suggestions
of proposals; he himself propose terms of settlement if
such a course is in accordance with national practice but it
is for the parties to accept or not to accept his suggestions
or proposals; he cannot impose terms of settlement upon
them.

A unique and essential characteristics of the conciliation

process is its flexibility, informality and simplicity which
sets it apart form other methods of setting industrial
disputes. A conciliator generally does not follow the same
procedure in every case, he adjusts his approaches,
strategy and techniques to the circumstances of each
disputes. Probably for this reason it has sometimes been
said that, “Conciliation is an art and the conciliator is a
solitary artist recognizing, at most, a few guiding starts
and depending mainly on his personal power of divination.

More Notes on CONCILIATION

EMPLOYEE MORALE

Aldrich defines morale “as readiness to co-operate warmly

in the tasks and purposes of a given group or
organization”. In a similar vein, Viteless describes morale
as 'an attitude of satisfaction with desire to continue in,
and willingness to strive for, the goals of a particular group
or organization. Leighton also defines it in a similar fashion
when he states “Morale is the capacity of a group of
people to pull together persistently and consistently in
pursuit of a purpose”. The essence of all these definitions
is that morale is the degree of enthusiasm and willingness
with which the individual members of a group set out to
perform the allotted tasks. In conditions of high morale,
every individual human being works with a will and
identifies his objectives with those of he organization. The
problem of morale was not as complicated in the industry
of medieval age as it is now under the modern factory set
up. In the early stages of industrial revolution (say, in the
handicraft stage or even in the domestic stage)-the
relationship between the employer and workmen was
direct and personal; the workmen did not accumulate
grievances and did not develop frustrations but could
frankly place them before the employer. The employer,
too, could evince personal interest in the well-being of the
workers and could thus win their loyal co-operation. With
the change in the industrial set-up brought about by the
Industrial Revolution, the tendency f he firms has been
more towards the big size in a big industrial organization,
the industrial worker is as if lost in the vast crows of his
colleagues. There are numerous levels of management
separating him from the employer. Under such
circumstances, the management has to be specially careful
in finding out the reactions, attitudes and feelings of
workmen. Care-lesses in this regard can cost the concern
the loss of that valuable secret reserve of tits
organization-morale. Research in the field of
industrializations had shown that in concerns of a very
large size, the incidence of industrial disputes is usually
higher than in those of a comparatively smaller size. This
further supports the view expressed above that the
problem of morale is more ticklish in larger concerns than
in smaller ones.

More Notes on EMPLOYEE MORALE

EMPLOYEE SELECTION

It is of utmost importance that the right type of men

should be put on different positions in a concern. This is
well expressed by the proverb that 'for round holes there
should be round pegs, and for square holes there should
be square pegs'. If a job is handled by a person who is so
well qualified that he can be put on a better job, he will
develop grouse against the management and society in
general for bing made to work below his capability. He will
also be dissatisfied because his earnings will be must less
than what he would be able to get if he were to do the job
suited to his capacity and capability. Form the into f view
of the employer also, it will not be worthwhile to employ
such a worker because he will tend to be inefficient for
want of interest. If the job is given to a person who is not
properly qualified for it, it may not be done well and again
there will be loss for the employer. The employee will also
develop a sense of inferiority. In both cases, both the
employee and the employer suffer. Ultimately, the worker
may find himself an utter 'misfit' and may decide to leave
the concern. Or else the concern may have to dismiss him
on account of poor workmanship. This will lead to high
labour turnover. The quality of work is also likely to be
adversely affected in this process.

It is, therefore, necessary that a job should be done by a

person who is exactly qualified for it-no more and no less.
To ensure the selection of the right type of persons for
various jobs the techniques of psychology may be applied
in a systematic manner. When workers are selected for
vocations or jobs in an industrial concern after a careful
weighing of the requirements of job on the one hand and
assessment and evaluation of the abilities and aptitudes of
men on the other, it is referred to as Scientific Vocational
Selection. It will be appreciated that vocational selection
requires two things: first, knowledge regarding the
qualities or traits which a person should possess in other
to do a given job properly, secondly, the measurement of
qualities possessed by a candidate for the job. The first
task requires the drawing up of a 'job specialization'. A job
specification may be defined as a catalog of various
qualities which a person doing a job should possess. It is
based on an analysis of the character of an industrial
operation known as 'Job analysis' or 'occupational analysis.

More Notes on EMPLOYEE SELECTION

EVALUATION OF INDUSTRIAL RELATIONS POLICIES
(CONTINUED)

The Plan stressed that the machinery to settle disputes

should be framed in accordance with these principles: (a)
legal technicalities and formalities of procedure, should be
used to minimum possible extent; (b) each dispute should
be finally and directly settled at a level suited to the
nature and importance of the case; (c) tribunals and
courts should be manned with specially trained expert
personnel; (d) appeals under these courts should be
reduced; and (e) provision should be made for enforcing
prompt compliance with the terms of any award.
For the sake of uniformity, the Plan recommended setting
up of “norms' and standards to govern the mutual
relations and dealings between the employers and
employees and for the settlement of industrial disputes
through tripartite bodies, viz., the Indian Labour
Conference, the Standing Labour Committee, and the
Industrial Committees for particular industries.

In case of some difference, it was pointed out that the

Government should take the decision on the advice of
export and should make such decisions binding on the
Courts or Tribunals. The Plan admitted that the workers
had a fundamental right to resort to strike but this was to
be discouraged. The plan was emphatic that “a strike or
lock-out without due notice during the pendency of any
proceedings and in violation of the terms of a settlement,
agreement, award or order have of course to be banned
and attended by suitable penalties and loss of privileges'.

(i) The need for a systematic “Grievance Procedure' to be

helped by having elected shop-stewards was also stressed.
(ii) The importance of the Works Committee was also
emphasized and these were described as “the they to the
system of industrial relations.” (iii) The plan stressed that,
“For the success of collective bargaining it is essential that
there should be a single bargaining agent over as large an
area of industry as possible. Separate unions for industrial
establishments in the same industry in a local area are
inimical to the growth of a strong and healthy trade union
and their existence may be justified only in very
exceptional circumstances.” (iv) The Plan also recognized
the vital and constructive role of trade unions and
recommended. “closer association between trade unions
and employers' representatives at the various levels-at the
level of the undertaking, at the level of industry and the
regional and national level.”

More Notes on EVALUATION OF INDUSTRIAL RELATIONS

POLICIES (CONTINUED)

INDUSTRIAL RELATIONS

Modern industrialization is not an unmixed blessing. It has

tended to create a yawing gulf between management and
labour because of absence of workers' ownership over the
means of production. The present large scale enterprise
results in the concentration of economic power compelling
the workers to realize the truth of the often mentioned
phrase 'united we stand divided we fall.” it gave an
incentive to workers as to realize the significance of
freedom of association an collective bargaining to protect
their legitimate rights and interests. On the other hand
employers suppressed the demands of the workers. This
ha sled to labour unrest and friction between the interest
of employer and employees. Industrial unrest reflects
failure of basic human urges a motivation to secure
adequate satisfaction or expression which ultimately burst
forth in the form of industrial dispute”. Strikes, lockouts,
go-slow factics, increased absenteeism and labour
turnover are some of the reflections of labour unrest which
require proper diagnosis for creating conditions for
industrial peace and prosperity. Industrial unrest is
sympathetic of a disease that demands cure and
prevention rather than suppression. Better production and
distribution is possible only in the atmosphere of peace
and industrial discipline to realize the social justice and
welfare of masses. If social justice is to be achieved
harmonious relationship between management and
employees is a must.

More Notes on INDUSTRIAL RELATIONS

INDUSTRIAL RELATIONS IN THE PUBLIC SECTOR

The entry of public sector in the economic sphere is post-

independence development . Prior to 1947, public sector
investment was limited to the railways, posts and
telegraphs department, the ordnance factories, and a few
State-manged factories like salt manufacturing, etc. the
philosophy and programme of public sector undertakings
are incorporated int the Industrial Policy Resolutions of
1984 and 1956. The Industrial Policy Resolution of 1984
declared that “a dynamic national policy must be directed
to a continuous increase in production by all possible
means, side by side with measures to secure its equitable
distribution. The problem of State participation in industry
and the condition in which private enterprise should be
allowed to operate must be judged in this context”.
Consequently, expansion in public sector began to be take
after this period.

More Notes on INDUSTRIAL RELATIONS IN THE PUBLIC

SECTOR

LABOUR MANAGEMENT RELATIONS

The basic relationship between a company and a labour

union consists of many complex variables built on past
practice and future needs. It brings together individuals,
groups, an institutions with different backgrounds, points
of view, interests, and strengths. The balance of power is
almost never equal; one party is usually dominant, These
relative strengths will vary from time to time and situation
to situation. Therefore, it is critically important that
management establish, implement, and maintain a rational
and objective strategy for dealing with the union; one that
considers needs and inierests of the company, union, and
employees. Unions can only make demands or try to take
control; it is the company that must agree to the demands
or allow them to happen. Hence, a need exists for a
regular, careful, and critical review of the overall labour
relations climate in an organization. Because it has such a
significant impact on the business, professional
management input is required.
Labour relations decisions should be based on research
and planning, just as it done with a new product concept
before designing, manufacturing, and marketing it. Labour
unions are staffed with members who have a high level of
expertise and technical competence Labour unions spend
the necessary funds to research today's problems as well
as to plan for the future. Management must do the same.
These questions should be asked. “are labour relations a
mainstream operating activity in your company ? Is the
activity properly staffed ? Is it held accountable for
significant results ?Does it support the business goals and
objectives ?”

More Notes on LABOUR MANAGEMENT RELATIONS

LABOUR PROBLEMS

In modern times, production is carried on in large factories

where thousands of men work together. The personnel
management is mainly responsible for the control of
human beings through human relations approaches. Men
differ in nature and therefore, it is but a natural that
labour problems shall also exist in the industrial society.
The main problems which are generally faced by the
industry are:

1. Absenteeism,
2. Labour turnover,
3. Health,
4. Accidents.

More Notes on LABOUR PROBLEMS

TRADE UNION

Trade union is a voluntary organisation of workers formed

to protect and promote their interests through collective
action. These may be formed on plant basis, industry
basis, firm basis, regional basis or national basis. Different
writers and thinkers have defined the trade union
differently. A few definitions are given below:

(i) Trade Union is a “continuous association of wage

earners for the purpose of maintaining and improving the
conditions of their working lines.”
-Webb

(ii) “A labour union or trade union is an organisation of

workers to promote, protect and improve, through
collective action, the social, economic and political
interests of its members.” -
Edwin B. Flippo

(iii) Trade Unions are “all organizations of employees

including those of salaried and professional workers as
well as those of manual wage earners which are known to
include among their functions that of negotiating with their
 employers with the object of regulating conditions of
employment.”
-Britich Ministry of
Labour

(iv) Any combination........formed primarily for the

purpose of regulating the elations between workmen and
employees........

From the analysis of the above definitions we may

conclude that trade union is a voluntary organisation of
workers formed primarily for the purpose of pursuit of the
interests of members.

More Notes on TRADE UNION

Meaning and definitions of industrial relations

The relationship between the employers and employees and
trade unions is called Industrial Relations. Harmonious
relationship is necessary for both the employers and
employees to safeguard the interests of both the parties of
production. Read Full Article Meaning and definitions of
industrial relations

Impact of industrial relations on industrial peace

An economy organised for planned production and
distribution, aiming at the realization of social justice and
welfare of the masses, can function effectively only in an
atmosphere of industrial peace. Read Full Article Impact
of industrial relations on industrial peace

Industrial disputes
The conflicts and disputes between employer and employees
on any industrial matter are known as industrial
disputes. Read Full Article Industrial disputes

Causes of industrial disputes

The new industrial set-up has given birth to the capitalistic
economy which divided the industrial society into two groups
of labour and capitalists. Read Full Article Causes of
industrial disputes

Economic Causes of industrial disputes

Really, the most common causes of industrial disputes are
economic causes. Read Full Article Economic Causes of
industrial disputes

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