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Industrial relations encompasses a set of phenomena, both inside and outside the workplace,
concerned with determining and regulating employment relationship Relationship between
management and employees or among employees and their organization that characterize and
grow out of employment.
Used to Define Industrial Relations (1) (1) Institutional-based definitions: industrial relations are
the sum of institutional processes that establish and administer the rules regulating workplace
relations (2) Social Psychology-based definitions: industrial relations are the sum of social
psychological interactions between individuals (3) Class-based definitions: industrial relations are
the sum of institutions, interactions and processes that are a product of wider social and
economic influences, in particular the class divisions of contemporary capitalism
3. Approaches Used to Define Industrial Relations (2) Ddefinitions that seek to include all matters
contained in the first three definitions within other terms:(4) Human Resource Management:
contracts of employment (involving trade unions, worker collectives, labour courts and
government agencies), as well as management of conflict arising out of the personal interactions
of individuals in the workplace, are part of labour management functions ( i.e. recruitment,
selection, training, development, performance management, and so on)(5) Employment
Relations (or Employee Relations): contracts of employment (involving trade unions, worker
collectives, labour courts and government agencies), as well as the management of conflict
arising out of the personal interactions of individuals in the workplace, are part of workplace
relations, together with the normal functions of Human Resource Management.
4. OBJECTIVES OF IRTo enhance economic status of workerTo avoid industrial conflicts and their
consequencesTo extend and maintain industrial democracyTo provide an opportunity to the
worker to have a say in the management decision makingTo regulate production by minimizing
conflictsTo provide forum to the workers to solve their problems through mutual negotiations and
consultations with managementTo encourage and develop trade union in order to develop
workers collective strength
5. NATURE OF IRIR arise out of employer employee relationsIR is a web of rules: formed by the
interaction of Govt, industry & laborIR is multi dimensional: influenced by complex set of
institutional. economic & technological factorsIR is dynamic and changing: keep pace with
employee expectations, trade unions, employer associations and other economic and social
institutions of societyIR is characterized by forces of conflict and compromise. Individual
differences and disagreements resolved through constructive means.Govt influences and shapes
IR: with its laws, rules, agreements through executive and judicial machineryScope of IR is very
wide as it covers grievances, disciplinary measures ethics, standing orders, collective bargaining,
participatory schemes and dispute settlement mechanism etcInteractive and consultative in
nature: in resolving conflict,controversies and disputes between labor and management.
6. SCOPE OF IRManagement Union relationshipEmployer Employee relationshipRelationship
amongst various groups of employeesEffect of extraneous factors like state, socio-political-
economic factors on workplace relationships
7. APPROACHES TO INDUSTRIAL RELATIONS Approaches to organisations Unitary Pluralistic
Marxist Authoritarian Co-operation Evolution Conflict Paternalism Revolution Approaches to
industrial relations Input Conversion Output Institutions Conflict Regulation and (differences)
(rules) processes Human Systems Social action Control of resource the labourmanagement
process Wider approaches to industrial relations Labour market Comparative
8. UNITARY APPROACHIR is grounded in mutual cooperation, individual treatment, team work and
shared goals.Work place conflict is seen as temporary aberration, resulting from poor
managementEmployees who do not mix well with organization cultureUnions cooperate with the
managementManagements right to manage is accepted because there is no we they
feelingUnderlying assumption is that everyone benefits when the focus is on common interest
and promotion of harmonyBased on reactive strategy. Direct negotiation with
employeesParticipation of Govt, tribunals and unions are not sought or are seen as being
necessary for achieving harmonious employee relation
9. PLURALISM(CONFLICT APPROACH )Pluralism is belief in the existence of more than one
ruling principle, giving rise to a conflict of interests.The pluralist approach to IR accepts conflict
between management and workers as inevitable but containable through various institutional
arrangements ( like collective bargaining, conciliation and arbitration etc) and is in fact
considered essential for innovation and growth.It perceives organizations as coalitions of
competing interests , where the managements role is to mediate among the different interest
groups.It perceives trade unions as legitimate representative of employee interestsIt also
perceives stability in IR as the product of concessions and compromises between management
and unions.Employees join unions to protect their interests and influence decision making by the
management. Unions thus balance the power between management and employees. In
pluralistic approach a strong unions is not only desirable but necessary
10. MARXIST APPROACHMarxists like pluralists also regard conflict as inevitable but see it as a
product of capitalistic society where as pluralist believe that the conflict is inevitable in all
organizationsFor Marxists IR has wider meaning. For them conflict arises not because of rift
between management and workers but because of the division in the society between those who
own resources and those who have only labor to offer.Marxist approach thus focuses on the type
of society in which an organization functions.Industrial conflict is thus equated with political and
social unrestTrade Unions are seen both as labor reaction to exploitation by capitalists, as- well-
as a weapon to bring about a revolutionary social change. Wage related disputes as
secondaryFor them all strikes are political and they regard state intervention ( via legislations and
creation of Industrial Tribunals ) as supporting managements interests, rather than ensuring a
balance between the competing groups.
11. SYSTEMS APPROACHIR - a social sub-system within the econ. & contexts (influences
actorspolitical systemsComponents & constraints on decisions & rules - regulatory elements
i.e. the terms ideology - beliefs affecting actor views - shared or in conflictaction e.g. market,
technology, demography, industrial structure) & nature of the employment relationship developed
by IR processes
THOUGHT )PSYCHOLOGICAL APPROACHDifferences in the perceptions of labor and
management wrt factors influencing their relations i.e. wages. Benefits, services and working
conditions etcDissatisfaction compels workers to turn aggressive and resort to strike, lockouts
and gherao etc.SOCIOLOGICAL APPROACHSociological factors such as value system,
customs and traditions etyc affect the relations between labor and managementHUMAN
RELATIONS APPROACHHuman behavior is influenced by feelings, sentiments and attitudes. As
per this approach humans are motivated by variety of social and psychological factors like
economic and non-economic awards to be used.GIRI APPROACHCollective bargaining and joint
negotiations be used to settle disputes between labor and management. Outside interference to
be avoided.GANDHIAN APPROACHworkers right to strike but cautioned that this right be
exercised in just cause and in a peaceful and non- violent manner for minimum wages etc like
satyagrah- Non violent non- cooperation
15. ROLE OF WORKERSWORKERS and their ORGANIZATIONS( Trade Unions or Associations
)Trade unions have a protecting role of safeguarding workers interests,Regulating function of
ensuring implementation of statutes / ActsEnsuring non-violation of workers rightsTrade Union
Act provides Status and Authority for the power vested in themThis power is used for negotiating
Wage Interests, better benefits and service conditions, concessions, more amenities and welfare
schemesStructure of Workers organization or Trade unions differs from country to country
16. ROLE OF MANAGEMENTAn organization is represented through officials designated in the
organization structure for coordination of activities relating to:Administering employee
benefitsRegulating terms and condition of employmentProviding welfare and social security
benefitsCoordination is done through graded hierarchical and formal communication channels of
orders and directivesStyle and manner in which employer organizations get work and regulate
the terms and conditions of employment affects the industrial relations of the unit.
17. ROLE OF GOVERNMENTGovt or state machinery regulates the relationship between workers
organizations and employers organizations.It does it through : - Statutes and legislations, - The
judiciary- labor courts industrial tribunals - An executive machinery- that lays down rules,
procedures and gives awards and monitors them
management to employees and unionsAttitudes of employees to management and
unionsAttitudes of unions to unions to management and employeesPresent and likely future
strength of unionsEffective and agreed procedures for discussing and resolving grievances or
handling disputes within the companyInter union rivalries in case of more than one
unionEffectiveness and capability of managers and supervisors in resolving grievances and
handling disputes.Companys strategy wrt expansion, diversification, contraction , stabilization,
turnaround and stagnation etcQuality of work life ( QWL), growth and developmental
opportunitiesDegree of Autonomy and Empowerment given to employees;
nationally or locallyAuthority and effectiveness of the employers familyThe extend to which
bargaining is carried out at national, local or plant levelThe effectiveness of any national or local
procedure agreements that may existEmployment situation nationally or locallyLegal framework
within which IR exists
21. SOCIAL SECURITY( IMPACT ON EMPLOYEE RELATIONS )Social security is one of the key
components of labor welfareLabor welfare refers to all such services, amenities and facilities to
the employees that improve their working conditions as-well-as their standard of livingSocial
security benefits provided by an organizations should protect not only their employees but also
their family members including financial security and health care etcSocial security envisages
that the employee shall be protected against all types of social risks that may cause undue
hardship to them in fulfilling their basic needs.Accidents, job losses, retirement, sickness, death
while on duty- these are realities of working life and leave a person and his dependents
vulnerableSocial security is an attempt by the employer and the state io institute measures that
mitigate such social risks
22. MAJOR LEGISLATIONSIndia being a welfare state has taken up itself the responsibility of
extending various benefits of social security and social assistance to its citizens.Although the
constitution of india is yet to recognize social security as a fundamental right, it does require state
to promote the welfare of the people by providing social, economic and political
justiceConstitution requires companies to make effective provisions for making effective
provisions for securing right to work, to educate and public assistance in case of unemployment,
old age, sickness and disablement. Securing just and humane conditions of work. Raise level of
nutrition and standard of living, improvement of public health etcA social security division has
been set up under the ministrybof labor and employment.In the context of labor , social security
aims at reducing risks against loss of earnings or earning capacity due to old age,illness or work-
related injuries.
23. Social security to the workers is provided through 5 major Acts:1. The Employees State
Insurance act, 19482. Employees provident Fund and Miscellaneous provisions Act3. The
Workers Compensation Act4. The Maternity Benefit Act5. The payment of Gratuity ActIn addition
there are large number of welfare funds also for some specific segmentsMajor thrust of social
security relating to labor is on: a) Provisions relating to medical facilities, compensation benefits
and insurance coverage incase if accidents, incapacity, illness etc.. b) Provisions relating to
provident fund and gratuity
25. Enhance their status in societyIn most countries, there are laws governing the formation,
membership and administration of trade unions. Improve the terms and conditions at their
workplaceWHAT IS A TRADE UNION?Definition: An organization of workers or employees
formed mainly to _ Negotiate with the employers on various employment related issues
26. ORIGIN & GROWTH OF TRADE UNIONMOVEMENTIndustrialization brought about new
economic and social order in societies. TU emerged as a result of industrialization in new social
orderFirst workers union in India under the leadership of Mr Lokhande was developed in
1890Beginning of labor movement in the modern sense started after the outbreak of World War
IEconomic. Political and social conditions influenced the growth of trade union movement in
India.Establishment of ILO helped the formation of TUs in the countryIn 1920 AITUC( All India
Trade Union Congress) was formed- the 1st All India trade unionWorld War II brought splits in
AITUC. Efforts of Indian National Congress resulted in the formation of INTUC( Indian National
Trade Union Congress)Socialists separated from AITUC formed HMS( Hind Mazdoor Sabha) in
1948Some other unions were also formed. They were BMS ( Bhartiya Majdoor Sangh) in1955,
HMP( Hind Majdoor Panchayat) in 1965, CITU( Centre of Indian Trade Union ) in 1970
27. PRINCIPLE OF TRADE UNION1. UNITY: Unity is strength2. Workers must not be discriminated
wrt EQUALITY: caste, creed, sex etc. Each worker should get equal pay for equal work3.
Security of their employment and their SECURITY: families must be safeguarded
28. For the benefits of members, resolve disputes in a mutually acceptable manner Protect jobs of
members1. Cooperate with employers TRADE UNION Collective bargaining Represent
members to negotiate with employers, for better wages and conditions of employment1.
Safeguard jobs OBJECTIVES OF A1.
29. OBJECTIVES OF A TRADE UNION activities4. Political - Support pro-union political parties5.
Social activities - Support members with recreation facilities and benefits for unemployment,
illness, retirement, death
30. Non-manual workers For unskilled workers1. Staff union Same craft or occupation1. General
union TYPES OF UNIONS1. Craft union
31. All members are from the same company regardless of occupation or job Same industry,
regardless of skills, occupation or job4. House union (company or enterprise union) TYPES OF
UNIONS4. Industry union
32. Meet co-workers from other departments or companies More secured with collective
agreement3. Social need Collective bargaining with employer2. Job security WHY
WORKERS JOIN UNIONS1. Higher wages and better working conditions
33. Serve other membersColleagues are members6. Self-fulfillmentAttend training courses
organized by union5. Peer pressureWHY WORKERS JOINUNIONS4. Upgrading of skills
34. OBJECTIVES/IMPORTANCE OF TRADE UNIONSWages & salaries Policy matter but
differences in implementation, so comes the role of trade unionWorking conditions safeguarding
workers health: Lighting & ventilation, sanitation, rest rooms, safety equipments ( hazards free
atmosphere , drinking water, refreshments, working hours, leave & rest, holidays with pay, job
satisfaction, social security benefits and other welfare measuresDiscipline Protect workers from
victimization by management- transfers, suspensions, dismissals etcPersonal policies Fighting
against improper implementation of personnel policies wrt recruitment, selection, promotion,
transfer, training etc..Welfare Solving difficulties of workers through collective bargaining wrt
sanitation, hospitals, quarters, schools, colleges and other basic amenitiesEmployer- employee
relations Bureaucratic attitude and unilateral thinking of mgmt may lead to conflicts Trade unions
go for constant negotiations for industrial democracy and peace.
35. Negotiating machinery Based on give and take principle, negotiations continue till parties reach
an agreement. Protect interests of workers through collective bargaining.Safeguarding
organizational health Methods evolved for grievance redressal, techniques adopted to reduce
absenteeism and labor turnover. upgrading skills- attend training courses organized by unions
36. ACTIVITIES OF TRADE UNIONECONOMIC: Improved economic status, shorter working day,
improvement in living and working conditions, better health & safety standards, upgrading
welfare facilities, reducing inequalities- both internally & externallyPOLITICAL: Seeking /
obtaining political power through political affiliations, lobbying activities to influence the cause of
labor and legislations, participating & representing workers on bipartite forums, developing
revolutionary ideologies among workers, protesting against Govt. decisionsSOCIAL: Initiating &
developing workers education system, organizing welfare & recreational facilities, providing
monitory and other help during period of strike and economic distress, running cooperative
welfare schemes and societies, hosing needs/ community development, organizing cultural
functions & social welfare programmesNATIONAL / INTERNATIONAL LEVEL: Representing
workers at the national level on advisory committees, associating with national federations for
unity & solidarity, Raising funds in case of national / International calamities or tragedies
37. FEATURES OF AN EFFECTIVE TRADE UNIONInternally democraticHave a strong
leadershipExhibit a responsibility towards their worker membersCommitted to promote industrial
peace and harmonyInclined towards collective bargaining that is collaborative and not
competitrivePossess financial securityAdaptable to change
38. INDUSTRIAL DISPUTE AND INDIVIDUALDISPUTEIndustrial dispute means any dispute or
difference between employers and employers, or between employers and workmen or between
workmen and workmen, which is connected with employment or non-employment or the terms of
employment .The dispute has to be between plurality of workman and employerIndividual
workman cannot raise an industrial dispute
insertion of 2A. Where any employer discharges, dismisses, retrenches or otherwise terminates
the services of an individual workman, any dispute or difference between that workman and his
employer.shall be deemed to be an industrial dispute notwithstanding that no other workman
nor any union of workmen is a party to the dispute. This definition is not applicable to disputes
short of termination
40. FORMS OF UNREST/DISPUTESSTRIKES: A strike is spontaneous and concerted refusal of
work and withdrawal of labor from production temporarily. It is a collective stoppage of work for
pressurizing their employers to accept certain demands.TYPES OF STRIKES:SYMPATHETIC
STRIKE: To show sympathy with workers in other industriesGENERAL STRIKE: Strike by all or
most of the unions in an industry or a regionUNOFFICIAL STRIKE: Strike undertaken without the
consent of the unionsSECTIONAL STRIKE: Refusal of a section of a given class of workers to
perform their normal dutiesBUMPER STRIKES: to paralyze the industry firm by firmSIT DOWN
/TOOL DOWN/PEN DOWN: Strike when unions plan strike and workers cease to perform but do
not leave the place of work:SLOW DOWN STRIKE: Go-slow tactic, workers do not stop working
but dot perform at their normal paceLIGHTNING STRIKE: Workers may go on strike without
notice or at very short notice with an element of surpriseHUNGER STRIKE: To gain sympathy
from public and get noticed by employer workers may decide to forego food for a specified
period. Such non-violent protests generally bring moral pressure on employers
41. FORMS OF UNREST/DISPUTESLOCK-OUTS:It is the counterpart of strike.It is the weapon
available with employer to close down the factory till the workers agree to resume work on the
conditions laid down by employer.If it is impossible to meet the demands of workers, employers
may decide o go for lock-outAn employer may also pull down the shutters so as to bring
psychological pressure on the workers to agree to his conditions or face the closure of
unitGHERAO:Gherao means to surroundGroup of workers initiate collective action aimed at
preventing members of he management from leaving the office. This can happen outside the
premises tooPersons who atre under gherao are not allowed to move for a long time, sometime
even without food or waterNational commission on labor has refused to accept it as a form of
industrial protestPICKETING and BOYCOTTWhile picketing workers carry/display signs ,banners
and placards( In connection with dispute), prevent others from entering the place of work and
persuade others to join the strikeBoycott aims at disrupting the normal functioning of an
enterprise, Through forceful and negative behavioral acts, strikers prevent others not to
cooperate with employer
may form their unions to collectively oppose the working class and put pressure on trade
unionsLOCKOUT:It is the counterpart of strike.An employer may close down the place of
employment temporarily. It is very powerful weapon available with employer to pressurize
workers till they agree to resume work on the conditions laid down by employer.If it is impossible
to meet the demands of workers, employers may decide o go for lock-outAn employer may also
pull down the shutters so as to bring psychological pressure on the workers to agree to his
conditions or face the closure of unitTERMINATION:Employer may resort to suspension or
disciplinary action leading to termination of workers on strike. The list of employees so
suspended or dismissed may be circulated to the other employer so as to restrict their chances
of getting employment with other employers.
43. CHANGING ROLE / PUBLIC PERCEPTIONTRADE UNIONSChange in the attitude of unions
towards management, Industry, Govt. and economyUnions becoming increasingly matured,
responsive and realistic Gone are the days of frequent strikes, bandhs, gheraoes and
violenceUnions are reconciled to economic reforms. The accent is on opposing the adverse
impact of reforms and not the reformsDiscussion among trade union circles is now on issues like
productivity, TQM, Technology, competition, MNCs, exports etc..Unions aware of the Right
Sizing and feel the need for suplus labor fat to be shedDays when unions were affiliated with
political parties are gone by. Today thrust is on de- politicization of unionsExperience of politically
free unions is pleasant, reinforcing the belief that farther the unions are from politics, more
advantageous it is for them
44. Workers association in our country is highly fragmented and the consequence is multiplicity of
unions, which weakens the bargaining strength of employees.One of the defects of trade union
movement in India has been the phenomenon of outside leadership. The fault of outside
leadership lies with trade Union Act, 1926 itself. The act permitted outside participation to the
extent of 50% of the strength of office bearers in a union.Trade Unions are at cross roads. Their
membership is declining, Their political support is waning, public sympathy is receding, their
relevance itself is at stakeManagements on the other hand are on the offensive. They are able to
force unions to accept terms and conditions. Workers,officers and managers are mercilessly
terminated in the name of restructuring, downsizing etcProfessionalisation of trade unions
movement is another trend witnessed, they are trying to upgrade their leadership quality. Topics
lie IT, strategic planning, diversity, networking and productivity etc now form inputs in training
programmes organized for union leaders
45. TRADE UNIONISM IN INDIA TODAYUnionization according to industry/region/state70,000
registered trade unions , many not regisered9 central unions, all affiliated to political parties2 %
of the union force unionizedPSUs: Industrial level collective bargaining in coal/steel, enterprize
level elsewherePrivate sector: Plant level collective bargainingUnion density according to the
size of of industryCraft unions in Govt transport sectorUnionization in India under recessionTwin
battle against Inter Union Competition and assertive management
leadershipMultiplicity of trade unionsSmall size of unionsLow membershipUneven growthPoor
financial positionLow level of knowledge of labor legislationFear of victimization
47. TRADE UNION ACT (1926)It legalizes the formation of trade unions by allowing employees the
right to form and organize unions and also strengthen bargaining power of workersAct aims to
provide law for the registration of trade unions and get it registered under the actPermits any
seven persons to form a unionOBJECTIVESLay down conditions governing the registration of
trade unionsDefines obligations of trade unionsPrescribe rights and liabilities of a registered
trade unionSTATUS OF A REGISTERED UNIONIt becomes a body corporateIt gets a common
sealIt can buy and hold movable and immovable propertyIt can enter into contracts with othersIt
can sue and be sued in its name
48. TRADE UNION ACT (1926)REGISTRATION:A trade union formed with at least 7 members may
apply for registration with following documentsA copy of the rules of trade unionName,
occupation and addresses of membersName of trade union and address of its office Office
Bearers of the trade unionsIn case already in operation- submit statement of accounts/assets
and liability statementOBLIGATIONS: It should have a name, clearly laid down objective,
membership list readily available, purpose for which funds shall be utilized, members to be the
actually working persons , Honorary/temporary office bearers, conditions for benefits/fines,
conditions under which rules shall be amended, manner in which office bearers shall be
appointed, safe custody of funds and manner in which trade union shall be dissolvedRIGHTS
AND LIABILITIES Section 15 of the Act provides for certain obligations and liabilities of
registered unionsIt also stipulates the purpose for which funds can be utilizedTHE
AMALGAMATION OF TRADE UNIONS:Any two or more registered unions may get
amalgamated together as one trade union
49. INDUSTRIAL DISPUTE ACT (1947)Ever expanding complex multi product/project companies
with diverse and conflicting interests of workmen and employers, growing labor consciousness,
resulting in strikes and lockouts, lead to the outcome of Industrial dispute Act, 1947Main
provisions of the Act are:Settlement machinery -Provides suitable machinery for investigation,
just, equitable and peaceful settlement of industrial disputes and aims to provide justice both to
employers and workmen - Collective bargaining, NegotiationAims at promoting security, amity
and good relations between employer and employee or between employers and workmen or
among workmenPrevent illegal strikes and lockouts and explains the contingencies when these
can be lawfully resorted to or when these can be declared illegal or unlawful.Provide conditions
and relief to workmen in the matters of lay-offs, retrenchment, dismissals and victimization Last
in first out in a retrenchment case or specific reasons in case of othersProvides conditions under
which an industrial unit can be closed down 60 days notice to be given of intention to close down
any undertaking Compensation to workmen in case of closing downGet the workmen the right of
collective bargaining and promote conciliationLists down unfair labor practices on the part of both
parties introduced in 1984
ACT:COLLECTIVE BARGAINING:It is a technique by which disputes as to conditions of
employment are resolved amicably, by agreement rather than
coercionNEGOTIATIONCONCILIATION AND MEDIATION: It is facilitated negotiation, essential
in public utility services, Binding on parties to the disputesARBITRATION:Voluntary Arbitration:
agreement between workman and management, Send copy to the Govt and conciliation officer,
publication of agreementADJUDICATION
51. Compulsory Adjudication LC, IT, NT Reference by the Appropriate Government Sec. 10(1)
Award Sec. 18(3) of ID Act S. 2-A, 33-A Publication of awardConciliation (if successful Judicial
review - Art. 226 or Settlement) Art. 136 Sec. 18(3) of INDUSTRIAL The I D act DISPUTES
Voluntary Arbitration 10-A Award 18(2) & 18(3) Judicial review - Art. 226 or Art. 136
Collective Bargaining If successful settlement Sec. 18(1) of ID Act
52. PUBLICATION OF AWARDSPublication is mustTime duration of 30 days is directoryAward
comes in to operation 30 days after publicationTribunal to recall the award
53. Collective bargaining begins after employer recognizes the union that claims to represent the
specific group of workers. union is able to honor the agreement.1. Recognition of union by
employer Unions have to be stable for collective bargaining to be effective Workers and
employers are free to form their own associations to represent their interests.1. Stability of union
54. Employment laws to ensure process takes place in an orderly manner. Relationship affected
and process becomes tense and difficult if any party used unfair practices such as
victimization.6. Supportive legal system Both parties must be willing to resolve differences to
reach an agreement.5. Mutual respect CONDITIONS FORSUCCESSFUL BARGAINING4.
Good faith
55. NEGOTIATIONSProcess depends on these factors: 1. Subject matter to be discussed 2.
Persons involved 3. Circumstances under which the discussion is held.A Typical Negotiation
Process begins with each party stating its position.As discussion progresses, each party adjusts
its demands to seek a mutually acceptable agreement.
56. Parties sign a written statement on what have been agreed. Parties look for possible
adjustment or compromise.1. Reaching an agreement Each party presents its case.1.
Exchange and compromise Each party must know what it wants.1. Presentation STEPS IN
NEGOTIATION1. Preparation
57. ArbitrationMediationConciliationWAYS TO SETTLE DISPUTESImpasse: settlement cannot
be reachedImpasses may be solved by these alternatives:
58. Conciliator does not impose a solution but works with the parties to enable them to come to an
agreement. Conciliator meets parties separately or together to exchange information, clarify
issues and settle misunderstanding. Impartial third party helps the two parties to reach a
mutually acceptable settlement. WAYS TO SETTLE DISPUTESConciliation
59. Arbitration gives some people the impression that they did not give in to the other party but
fought all the way to the Arbitration Court. Some prefer arbitration as the responsibility for
reaching agreement is made by a neutral party (quite often, appointed by the government e.g.
Arbitration Court). Third party settles the dispute by making an independent decision for the
two parties. WAYS TO SETTLE DISPUTESArbitration
60. Final agreement is made by the two parties themselves. Mediator makes recommendations for
the two parties to consider. Impartial third party helps to reach a mutually acceptable
agreement. WAYS TO SETTLE DISPUTES Mediation