Effective Industrial relations means Industrial peace necessary for better and higher

production, hence, healthy Industrial Relations is the key to progress of individuals,

management, Industry and Nation.
Importance of Industrial Reations are as follows:
1. Uninterrupted production
a. It is the most important benefit of industrial relations.
b. It ensures continuity of production.
c. It provides continuous employment to all.
d. ptimum use of available resources in order to gain ma!imum possible production.
e. "ontinuous flow of income for all.
2. Reduction in Industrial #ispute
a. "ordial Industrial relations helps in reducing industrial disputes, disputes are reflections
of the failure of basic motivation in order secure satisfaction among employees. $ome
reflections of industrial unrest includes strikes, lockouts, gheraos and grievances.
b. It promotes industrial peace with cordial industrial relations, disputes can be settled
through co%operation.

3. &igh morale % Industrial relation improves the morale of employees
a. Employee feels that he is co%owner of the profits of industry.
b. &igh morale induces employees to work with high energy as they feel that their
interest co%ordinates with organi'ational interest.
c. In order to maintain good Industrial relations employer need to reali'e and share
e(ually the profits of industry generously with employees
d. Unity of thought and action against workers and management is main achievement of
industrial peace.
e. Effective industrial relations boosts morale of workers which leads to positive effect in
production

4. )ental revolution
a. Effective Industrial Relations brings mental revolution among employees which bring
complete overhaul in the outlook of employees.
b. Employees, employer and government need to work out a new relationship in
consonance with spirit of true democracy where each thinks of themselves as partners in
industry.
c. Industrial peace ultimately lies in transformed outlook.

5. Economic growth and #evelopment
It promotes economic growth and development, effective industrial relations lead to
increase efficiency and higher productivity, which ultimately results in economic
development.

6. #iscourages unfair practices
"ordial industrial relations discourages unfair practices on part of both management and
unions. Industrial relations leads to formation of machineries in order to solve problems
confronted by management, employees and unions through mutual understanding and
negotiations to which both parties are bound, this results in banning of unfair labour
practices.

7. Enactment of statutory provisions
Industrial relations enables essential use of certain labour laws in order to protect and
promote the welfare of employees and safeguards interests of all parties against unfair
means means or practices.
*he healthy industrial relations are key to the progress and success. *heir significance may be
discussed as under +
Uninterrupted production + *he most important benefit of industrial relations is that this
ensures continuity of production. *his means, continuous employment for all from manager to
workers. *he resources are fully utili'ed, resulting in the ma!imum possible production. *here is
uninterrupted flow of income for all. $mooth running of an industry is of vital importance for
several other industries, to other industries if the products are intermediaries or inputs, to
e!porters if these are e!port goods, to consumers and workers, if these are goods of mass
consumption.
Reduction in Industrial #isputes + -ood industrial relations reduce the industrial disputes.
#isputes are reflections of the failure of basic human urges or motivations to secure ade(uate
satisfaction or e!pression which are fully cured by good industrial relations. $trikes, lockouts, go%
slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not
spring up in an atmosphere of industrial peace. It helps promoting co%operation and increasing
production.
&igh morale + -ood industrial relations improve the morale of the employees. Employees work
with great 'eal with the feeling in mind that the interest of employer and employees is one and
the same, i.e. to increase production. Every worker feels that he is a co%owner of the gains of
industry. *he employer in his turn must reali'e that the gains of industry are not for him along but
they should be shared e(ually and generously with his workers. In other words, complete unity of
thought and action is the main achievement of industrial peace. It increases the place of workers
in the society and their ego is satisfied. It naturally affects production because mighty co%
operative efforts alone can produce great results.
)ental Revolution + *he main ob.ect of industrial relation is a complete mental revolution of
workers and employees. *he industrial peace lies ultimately in a transformed outlook on the part
of both. It is the business of leadership in the ranks of workers, employees and -overnment to
work out a new relationship in consonance with a spirit of true democracy. /oth should think
themselves as partners of the industry and the role of workers in such a partnership should be
recogni'ed. n the other hand, workers must recogni'e employer0s authority. It will naturally have
impact on production because they recogni'e the interest of each other.
Reduced 1astage + -ood industrial relations are maintained on the basis of cooperation and
recognition of each other. It will help increase production. 1astages of man, material and
machines are reduced to the minimum and thus national interest is protected.
*hus, it is evident that good industrial relations is the basis of higher production with
minimum cost and higher profits. It also results in increased efficiency of workers. New
and new pro.ects may be introduced for the welfare of the workers and to promote the morale of
the people at work. 2n economy organi'ed for planned production and distribution, aiming at the
reali'ation of social .ustice and welfare of the massage can function effectively only in an
atmosphere of industrial peace. If the twin ob.ectives of rapid national development and increased
social .ustice are to be achieved, there must be harmonious relationship between management
and labor.