Module -3

Industrial Relations

Prof. Keren Millet

Meaning and definition of industrial relation

According to Dale Yoder industrial relation is a

relationship between management and employees or among employees and their organization that characterize and grow out of employment. According to ILO, industrial relation deal with either the relationships between the state and the employers and the worker organization or the relation between the occupational organization themselves.
Prof. Keren Millet

Objectives of industrial relations

To safeguard the interest of labor and

management Enhance the economic status of the workers Eliminates strikes and lockouts. Government control. Participation of workers. Avoid industrial conflict Maintain industrial democracy Raise productivity

Prof. Keren Millet

Scope of industrial relation

Establishing and maintains good personnel

relation in the industry. Making a mutual link between the management and the workers. Ensuring manpower development. Creating a mutual affection, respect and regard. Creating the sense of belongingness. Maximizing social welfare. Development of industrial democracy.

Prof. Keren Millet

Three Actors of industrial relation

Prof. Keren Millet

Three actors of industrial relation (cont..)

Workers and their organization: workers plays

vital role in IR. The total worker includes working age, educational background, psychological factors, social background, cultures etc. Employers and their organization: employers employs the workers, pay the wages and various allowance, regulates working relation through various regulation. Government: government plays the balancing role of custodian of nation. Government exerts its influence on IR through its policy, industrial relation policy, implementation of laws, playing role of mediator etc.
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Main Aspects of industrial relation

Essentially, IR is concerned with the relationship

between management and the workers and the role of regulatory mechanism in resolving any industrial disputes. IR covers the following area Collective bargaining Role of management, union and government( participative management) Machinery for resolution of industrial disputes (dispute settlement) Individual grievance and disciplinary policy and practice.(grievance Redressal) Industrial relation training(employer organization)

Prof. Keren Millet

Grievance Redressal

Participative Management

Dispute seetlment

Industrial relation

Employers organization

Trade Union

Prof. Keren Millet

Collective Bargaining

The main aspect of industrial relations are:

Development of Healthy Labor-Management

Relation. Maintenance of Industrial peace Development of Industrial democracy

Prof. Keren Millet

Development of Healthy LaborManagement Relation

The existence of strong, well-organized,

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democratic and responsible trade union and association of employees. These organizations enhance the job security of employees help in increased worker s participation in management. The spirit of collective bargaining and willingness to take resources to voluntary arbitration. Welfare work whether statutory of non- statutory, provided by the state, trade union s and employers create, maintain and improve labour management relation and the thereby contribute to industrial peace. Prof. Keren Millet

Maintenance of Industrial peace

Machinery should be set up for the prevention

and settlement of industrial disputes The government should have the power to refer disputes to adjudication(mandatory settlement by courts) i.e when the situation tends to be out of the hand. The government enjoys the power to maintain the status quo. The provision of bipartite and tripartite forums for the settlement of disputes.
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Development of Industrial democracy

Establishment of the shop councils (500 or more

worker at departmental levels) (to achieve increased production, productivity and overall efficiency) and joint management councils( at plant level 500 or more people) Recognition of human rights in industry Increase in labour productivity The availability of proper work environment

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Prof. Keren Millet

Importance of IR
Industrial Peace

High Morale
Mental revolution Workers development Reduced wastage

Prof. Keren Millet

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Functions of IR
1. Communication is to be established between

workers & the management. 2. To establish a relationship between managers & the workers ( employees). 3. To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of workers on one hand & the management on the other hand, to avoid unhealthy atmosphere in an industry 4. To lay down such considerations which may promote understanding, creativity & cooperativeness to raise the industrial Prof. Keren Millet productivity, to ensure better workers

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Contrast between HRM & IR

HRM
1. 2 parties- Employee & Employer 2. HRM refers to a personnel management policy to be adopted in industrial organization to develop a sense of belongingness in the workers improves their efficiency and treat them as human being and make partner in industry 3. Problems of HRM are personal in charter and are related to the behavior of the worker where morale and social element predominate. 4. Individual employee contacts with the immediate supervisor 5. Grievance & disciplinary procedures are resorted to solve the employee-employer conflicts.

IR
1. 4 parties- Employees, employer, trade union & govt 2. Industrial relation refers to the relations between the employees and the employers in an industry 3. Industrial relation covers the matter regulated by the law or by the collective agreement between employees and employers. 4. Employees contact even the top management as a group 5. Collective bargaining & forms of industrial conflict are resorted to solve the problems.

Prof. Keren Millet

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Causes of Poor IR
Nature of work.

Poor Wages and Working condition.

Defective Trade union system. Occupational Instability. Poor Behavioral Climate.

Prof. Keren Millet

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Factors affecting IR
1.

2.
3. 4. 5. 6. 7. 8.

Institutional Factors Economic Factors Technological Factors Social & cultural Factors Political Factors Psychological Factors Enterprise related Factors Global Factors

Prof. Keren Millet

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Institutional Factors
It includes:

Government policy
Labor legislation, Voluntary courts Collective bargaining Employee courts Employees federation Social institution like community, caste, joint

family, creed, system of belief, attitude of works, system of power status.

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Economic Factors
Capitalist

Communist
Mixed The structure of labor force, demand for and

supply of labor of labor force etc

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Technological Factors
Automation

mechanization
R&D activities Rationalization computerization

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Social & cultural Factors

Population

Religion
Customs & traditions of people Cultures High caste/ low caste

Prof. Keren Millet

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Political Factors
Political parties & their ideologies

Attitude of govt
Control of political parties on trade union Mode of achievement of their policies Involvement of trade union

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Psychological Factors
Owners attitude

Perception of workers
Moral, interest, boredom, dissatisfaction Motivation

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Enterprise related Factors

Style of management prevailing in enterprise

Its philosophy
Orgn climate Adaptability to change HR Management policies

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Global Factors
International relations

Global conflicts
Trading policies Role of ILO

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