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Material IIBM Institute of Business Management

Ch-19 Employment Relations

Chapter
19 Employment
Relations

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Introduction

Harmonious industrial relations between labour and management are

essential to achieve industrial peace and higher productivity.

When the relationship between the parties is not cordial,

discontentment develops and conflicts erupt abruptly.

Both labour and management must appreciate the importance of

openness, trust and collaboration in their day-to-day dealings.

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Labour Relations

The term labour relations or industrial relations refers to relationships

between management and labour or among employees and their
organisations that characterise or grow out of employment.

Dale Yoder defined it as "a relationship between management and

employees or among employees and their organisations, that
characterise and grow out of employment".

According to the ILO, "industrial relations deal with either the

relationships between the state and the employers and the workers
organisation or the relation between the occupational organisations
themselves".

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Collective Bargaining
Collective bargaining is a procedure by which the terms and conditions of
workers are regulated by agreements between their bargaining agents and
employers.

Features

1. Collective 6. Dynamic

2. Strength 7. Power relationship

3. Flexible 8. Representation

4. Voluntary 9. Bipartite process

5. Continuous 10. Complex

Cont

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Objectives

1. To settle disputes/conflicts relating to wages and working conditions.

2. To protect the interests of workers through collective action.

3. To resolve the differences between workers and management through

voluntary negotiations and arrive at a consensus.

4. To avoid third party intervention in matters relating to employment.

Cont

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Process of Collective Bargaining

1. Identification of the problem

2. Collection of data

3. Selection of negotiators

4. Climate of negotiations

5. Bargaining strategy and tactics

6. Formalising the agreement

7. Enforcing the agreement

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Approaches to Industrial Relations

1. Psychological approach

2. Sociological approach

3. Human relations approach

4. Giri approach

5. Gandhian approach

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Trade Union

1. Trade union is an association either of employees or employers or of

independent workers.

2. It is a relatively permanent formation of workers.

3. It is formed for securing certain economic (like better wages, better

working and living conditions) and social (such as educational,
recreational, medical, respect for individual) benefits to members.

4. It includes a federation of trade unions also.

5. It emphasises joint, coordinated action and collective bargaining.

Cont

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Objectives of Trade Union

1. Wages and salaries

2. Working conditions

3. Discipline

4. Personnel policies

5. Welfare

6. Employee employer relations

7. Negotiating machinery

8. Safeguarding machinery
Cont

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Functions of Trade Unions

1. Militant or protective or intra-mutual functions

2. Fraternal or extra-mutual functions

3. Political functions

4. Social functions

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Industrial Conflict
Industrial conflicts constitute militant and organised protests against existing
industrial conditions. The term is characterised by the following factors:

1. There should be a difference or dispute. For example, labour demands

something, management does not grant the same.

2. The dispute could be between employer-employer, employee-employee

or employer-employee.

3. The dispute must pertain to some work-related issue.

4. Dispute between one or two workmen and their employers is not an

industrial dispute; instead, it must be raised by a group or class of
workmen.
Cont

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Forms of Industrial Dispute

The various forms of industrial disputes may be stated thus:

Strikes

Lock Outs

Gherao

Picketing and Boycott

Cont

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Material IIBM Institute of Business Management
Ch-19 Employment Relations

Causes of Industrial Disputes

1. Employment

2. Nationalisation

3. Administration related causes

4. Recognition

5. Sympathetic strikes

6. Psychological / Social causes

7. Institutional causes

8. Political causes

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