Introduction to Industrial Relations

What is Management?

INPUTS (The Six Ms)

MANAGEMENT FUNCTIONS (The process of management)

PLANNING DIRECTING

OBJECTIVES (End Results)

Men & Women Materials Machines Methods Money Markets

Goods & services desired by Customers STAFFING ORGANISING CONTROLLING

Functions of HRM

Managerial Functions

Operational Functions

Advisory Functions

1. Planning 2. Organizing 3. Directing 4. Controlling

1. Employment 2. Human Resource Development 3. Compensation 4. Human Relations 5. Industrial Relations 6. Recent Trends in HRM

1. Advice to Top Management 2. Advice to departmental heads

STRATEGIC MANAGEMENT PROCESS

Mission & Goals EXTERNAL INTERNAL

Strategic Choice

Functional Level Strategy Business Level Strategy Corporate Level Strategy Global Level Strategy
Strategy Implementation

SWOT PORTERS PORTFOLIO MODELS

Designing Org. Structure.

Conflict, Politics & Change

Designing Control Systems

Matching Strategy, Structure & Control

(Feedback)

CULTURE, CLIMATE, LEADERSHIP

What is Industry?

Economic activity concerned with the processing of raw materials and manufacture of goods in factories.

A particular form or branch of economic or commercial activity: "the tourist industry".

What is Industry?

Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit.

What is Industry?

Industry is a whole gamut of activities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits.

What is Industry?
A classification that refers to a group of companies that are related in terms of their primary business activities. In modern economies, there are dozens of different industry classifications, which are typically grouped into larger categories called sectors.

What is Industry?
Individual companies are generally classified into industries based on their largest sources of revenue.

For example, an automobile manufacturer might have a small financing division that contributes 10% to overall revenues, but the company will still be universally classified as an auto maker for attribution purposes.

Industrial society
Industrial society is a complex and dynamic society (consist of group, societies and institution) they are interrelated, however have different attitudes and perceptions, and also being influenced by external environment.

WHAT IS INDUSTRIAL RELATIONS ?

An act or art of controlling human resources in employment.

Also referred as human relations, labour relations, legal relations etc.

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WHAT IS INDUSTRIAL RELATIONS ?

Essentially : human relations adjustment between humans.

Two inseparable limbs. Interest apparently conflict but complimentary.

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WHY INDUSTRIAL RELATIONS ?

Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of ALL to create and maintain good relations between employees (labor) and employers (management).

Definition IR

Industrial relations encompasses a set of phenomena, both inside and outside the workplace, concern with determining and regulating employment relationship

Concept of Industrial Relations

Comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. Relations refers to the relationships that exist within the industry between the employer and his workmen.

Concept of Industrial Relations

Industrial relations are the relationships between employees and employers within the organizational settings.

Concept of Industrial Relations

The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated.

Concept of Industrial Relations

The term industrial relations has a broad as well as a narrow outlook. Industrial relations covers all aspects of the employment relationship.

Concept of Industrial Relations

Broad aspects of the employment relationship.

human resource management

(nonunion employment relationships and the personnel practices and policies of employers)

Concept of Industrial Relations

Narrow aspects of industrial relation

collective bargaining, trade unionism, labor-management relations

Concept of Industrial Relations

Industrial Relations - a Process Process through which relationships are expressed (such as, collective bargaining, workers participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

3 Actors of Organization

Shareholder / Employer
Employees

Government

EMPLOYER
a person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons. a person who directly engages a worker / employee in employment. any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed.

EMPLOYER
As per Industrial Disputes Act 1947 an employer means: in relation to an industry carried on by or under the authority of any department of [the Central Government or a State Government], the authority prescribed in this behalf, or where no authority is prescribed, the head of the department; in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority;

EMPLOYEE

Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business. Employee, as per Employee State Insurance Act 1948, is any person employed for wages in or in connection with work of a factory or establishment to which the act applies.

EMPLOYEE
directly employed for wages within the premises or outside services are temporarily lent or let on hire Under a contract of service

3 Actors of Organization

Shareholder / Employer - represented by management, association of employers. Always to gain as much profit and productivity. Employees- being represented by trade unions. To get good salary and good working conditions

Government - being represented by specialize government agencies concern with workers, enterprise and their relationship. Try create industrial harmony

Industrial Relations System

Importance of Industrial Relations:

Uninterrupted production Reduction in Industrial Disputes High morale Mental Revolution Reduced Wastage

Importance of Industrial Relations:

Uninterrupted production
continuous employment flow of income for all for several other industries to exporters

Importance of Industrial Relations:

Reduction in Industrial Disputes Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, 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

Objectives of Industrial Relations

To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.

Objectives of Industrial Relations

To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.

Objectives of Industrial Relations

To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.

Objectives of Industrial Relations

To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.

Objectives of Industrial Relations

To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.

Objectives of Industrial Relations

To improve the economic conditions of workers in the existing state of industrial managements and political government.

Objectives of Industrial Relations

Socialization of industries by making the state itself a major employer

Dunlop's Contribution To Industrial Relations

According to Dunlop industrial relations system consists of three agents

management organizations, workers and formal/informal ways they are organized (trade unions) government agencies.

Dunlop's Contribution To Industrial Relations

Environment

Dunlop's Contribution To Industrial Relations

Industrial Relations is a social sub system subject to three environmental constraints the markets, distribution of power in society and technology.

Dunlop Definition (1958)

An Industrial relation system at any one time in its development is regarded as comprised of certain actors, certain contexts, an ideology which binds the Industrial Relation system together and a body of rules created to govern the actors at the workplace and work community.

Approaches to IR
There are 6 basic approaches to IR in India. 1. Psychological approach 2. Sociological approach 3.Human Relations approach 4. Socio-ethical Approach 5. Gandhian Approach 6.Systems Approach 7. Marxian Approach

Introduction to Approaches

Industrial Conflict a complex phenomena.

Introduction to Approaches

, An economist tries to interpret industrial conflict in terms of impersonal markets forces and laws of supply demand.

Introduction to Approaches

To a politician, industrial conflict is a war of different ideologies perhaps a class-war.

Introduction to Approaches

To a psychologist, industrial conflict means the conflicting interests, aspirations, goals, motives and perceptions of different groups of individuals, operating within and reacting to a given socio-economic and political environment.

Psychological approach

The origin of industrial conflict lies in the perceptions of the management, unions and the workers.

The management and labour see each other as less dependable.

Emotional characteristics

Psychological approach

The conflicts between labour and management occur because every group negatively perceives the behaviour of the other i.e. even the honest intention of the other party so looked at with suspicion.

Psychological approach

The problem is further aggravated by various factors like the income, level of education, communication, values, beliefs, customs, goals of persons and groups, prestige, power, status, recognition, security etc are host factors both economic and noneconomic which influence perceptions unions and management towards each other.

Psychological approach

Industrial peace is a result mainly of proper attitudes and perception of the two parties.

Sociological approach

Industry is a social world in miniature. Industry is, thus inseparable from the society in which it functions

Sociological approach

The main function of an industry is economic, its social consequences are also important .
urbanization, social mobility, housing and transport problem in industrial areas, disintegration of family structure, stress and strain, etc

Sociological approach

A new industrial-cum-social pattern emerges

The management goals, workers attitudes, perception of change in industry

Sociological approach
culture of the institutions, customs, structural changes, status-symbols, rationality, acceptance or resistance to change, tolerance etc

Human relations approach

freedom of speech, freedom of of thought freedom of of expression, freedom of movement, etc

Human relations approach

In fact major problems in industrial relations arise out of a tension which is created because of the employers pressures and workers reactions, protests and resistance to these pressures through protective mechanisms in the form of workers organization, associations and trade unions

Human relations approach

It has now been increasingly recognized that much can be gained by the managers and the worker, if they understand and apply the techniques of human relations approaches to industrial relations

Human relations approach

The workers are likely to attain greater job satisfaction, develop greater involvement in their work and achieve a measure of identification of their objectives with the objectives of the organization; the manager, on their part, would develop greater insight and effectiveness in their work.

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

(Dunlops approach) The systems approach views the Industrial relations as a system in itself with the following elements
Participants The Environment Ideology The Structure

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

Participants -The actors taking part in the Industrial Relations process. There 3 actors. Workers and their organizations/representative Managers and their organization/representatives The government and its specialized agencies for enactment and implementation of laws, rules and policies.

All the participants have their own, goals, interests values and beliefs.

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

The Environment constituting the technological, economic and social (power distribution) sub systems in which the organization operates. The environment influences the relations between employer and employee.

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

Ideology - own sets of beliefs and values, which shape the interaction between them, and consequently the output of such a relationship

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

In the words of Dunlop an ideology is a set of ideas and beliefs commonly held by the actors that helps to build or integrate the system together as a entity.

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

The Structure The structure consists of rules and procedures established for the interaction of the actors in Industrial relations, collective bargaining procedures, conflict resolutions and grievance settlement practices.

SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

Dunlops Industrial Relations system is an analytical enquiry into the structure and processes of the dynamics of relations between management, workers and government.
Dynamism- study of continuously changing interactions.

GANDHIAN APPROACH
each individual worker as a human being recognizing the rights of the worker as well as the employer/ owner believed in the concept of cooperation, non violence and trusteeship laid great emphasis on mutual respect and concern by the participants to Industrial relations

GANDHIAN APPROACH

philosophy entailed peaceful coexistence of capital and labour and called for the resolution of conflict in non-violent ways.

GANDHIAN APPROACH

Strike : accepted the workers right to strike, but only in extreme situation when employers fail to respond to all kinds of moral appeals. Even strike, if it takes place should be peaceful and non violent.

GANDHIAN APPROACH

The principle of trusteeship:

Enunciated the principle of trusteeship, implying that the owner of wealth is actually the custodian and keeps the wealth as a trustee of society, to which it actually belongs, and the individual workers are expected to be co-trustees too.

GANDHIAN APPROACH
Gandhiji advocated the following rules to be observed for resolution of disputes Workers should seek redressal of reasonable demands only, through collective action. If strike necessary it should be peaceful. Strikes to be resorted to when all measures have failed. If direct settlement fails, workers should resort to voluntary arbitration. Means and ends are equally important.

The Marxian approach

Based on the class conflict between haves and have nots, between the controller and the controlled and between the exploiter and the exploited. It views industrial relations as a struggle between worker and owners, employer and employees, between capital and labour, with a view to exert greater influence on each other

The Marxian approach

The Marxian approach to industrial relations, also, therefore derives its strength from the class conflict analysis of industrial relations. Industrial Relations are basically market relations.

The Marxian approach

Lenin was of the view that social democratic consciousness amongst workers will have to be brought - the conviction to combine in unions, fight the employers and strive to compel the government to pass necessary legislation.

The Marxian approach

But the Marx viewed a broader role for the working class as a struggle against all forms of exploitative structures and processes, to establish a new social order. The political education of the working class and the development of its political consciousness

The Marxian approach

TROTSKY (1977) capitalism trade union raising the material and cultural level of the proletariat and the extension of its political rights - can either transform themselves into revolutionary organizations.

The Marxian approach

Marx - workers unite for common goals, the goals do not remain common and conflict of interests creeps in, but still some common interests still remain which keep them together.

The Marxian approach

Industrial relations is mere job regulation - conflicts never cease. conflicts will never cease till capital accepts labour as an equal partner and is prepared to share power. The processes, which operate in reaching agreements, are more important than the institutions established for the same.

REFERENCE:
IR, T.N.CHHABRA, RK.SURI IR,SARMA. A.N IR, B.D. SINGH HR and IR, Tapomoy Deb.