Industrial Relation’s

Management
BY

AZERSHA.A
ARUMUGHAM.SU
JAMES SUDHAN PRADEEP.J
JEBIN
 Industrial Relations & Human
Resource Management
Learning objectives:

• To draw attention to the importance of the human factor in

organisations

• To develop the conceptual skills needed to understand the

nature of the employment relationship

• To examine the nature, objectives and processes used by the

principal actors in the employment relationship
 Industrial Relations
What we intend to cover:

 Definition & Concept of IR

 The nature of the employment relationship

 The evolution of Industrial Relations

 Importance & Aspects of IR

 Approaches of IR

 Industrial disputes/Conflict
 Introduction to Industrial Relations

Definitions

Key Players

Concept

Imlication
 Definitions

Industrial Relations is………

…the consecrated euphemism for the permanent conflict,

now acute, now subdued, between capital and labour.
(Blyton & Turnbull, 1998)
 Industrial Relations….

‘the regulation of the relationship between employers and

employees’
Industrial Relations Affects:

Economic Performance

Business Success

Employees Experience of Work

 Key Players

GOVERNMENT

INDEPENDENT 3RD PARTIES

EMPLOYEES EMPLOYERS
 CONCEPT
Industrial relation studies only in manufacturing and service sectors.

It omits the small scale,Agriculture,and other sectors of the

economy.

IR covered from individual relations at the shop floor to the

regional,national,and international bodies.

IR characterized by both conflict and co – operation.

Without labor and management the relationship can't exist.

IMPLICATIONS

Trade unions

Managerial prerogative

Conflict
 Important Historical Milestones
Industrialisation brought about drastic changes in the working
methods, man power management relations on the shop floor

18thc Industrial Revolution begins U.K.

Early 19thc Series of statutory decisions making TU’s illegal

1868 British Trade Union Congress (TUC) founded

1871-1906 Pro-union legislation in the UK

1894 Irish Trade Union Congress (ITUC) founded

1909 Irish Transport Workers Union (ITWU)

1913 The Dublin Lockout

1916- 1922 British unions break away

1946 Set up of the Labour Court

1880’s Gradual decline in union membership

1987 Social Partnership Agreements

 Importance of
Industrial Relations
&
Aspects Of Industrial
Relations
 IMPORTANCE
The healthy industrial relations are key to the progress
and success.
Their significance may be discussed as under –

Uninterrupted production
Reduction in Industrial Disputes
High morale

Mental Revolution

Reduced Wastage
ASPECTS OF INDUSTRIAL
RELATIONS

-Development of healthy labour

-Maintenance of Industrial relations
-Development of Industrial Democracy
Development of healthy :
The existence of strong
The spirit of collective bargaining and
willingness to take recourse to voluntary
arbitration
Welfare work
 Maintenance of Industrial relations

 Machinery should be set up for the prevention and

settlement of industrial disputes
 The government should have the refer disputes to
adjudication
 The government enjoys the power to maintain the status
quo
 Development of industrial
democracy
 Establishment of the shop councils and joint
management councils
 Recognition of human rights n industry
 Increase in labour productivity
 The availability of proper work environment
 Approaches
Psychological approach

Sociological approach

Human relation approach

Socio-ethical approach

V.V Giri approach

Gandhian approach

System approach
 Psychological approach

The general impression about the person is radically different

when he is seen as a representative of management from that
of the person as a representative of labour

The management and labour see each other as less dependable

The management and labour see each other as deficient in

thinking regarding emotional characteristics and interpersonal
relation
 Sociological approach

The industry is a social world in miniature

This approach includes various sociological factors like value

system, customs, norms, symbols, attitude and perception of
both labour and management

A process of the industrial culturisation of the working class

has set in social mobility to-day which accounts for the
emergence of mixed industrial work force
 Human relation approach
The various human resources management policies including
those relating to leadership and motivation have profound
influence on the employees work behavior.

For maintaining a good industrial relation, the study of human

needs is paramount importance; there are four types basic
needs such as:-
Physiological
Safety
Social
egoistic
 Socio-ethical approach
A good industrial relations can be only maintained when both
the labor and management realize, their moral responsibility in
contributing to the said task through mutual co-operation and
greatest understanding of each others problem

The goal of labor management relations may be stated as

maximum productivity , leading to rapid economic
development, adequate understanding among employees,
employers, workers and government
 V.V Giri approach

It has laid stress on collective bargaining and mutual

negotiations between employers and employees for the
settlement of disputes.

There should a bipartite machinery in every industry and

every unit of the industry to settle differences from time to
time with the active encouragement of government.

It can be said that it puts ethical pressure on the parties for the
maintenance of good industrial relations through peaceful
settlement of dispute
 Gandhian approach

Gandhiji’s views on industrial relation are based on his

fundamental principles of truth and non-violence, non
possession or aparigraha and non co-operation.

This philosophy presumes the peaceful co-existence of capital

and labour

Gandhiji has accepted the workers right to strike but in a

peaceful and non-violent manner
 System approach

This approach is quite helpful in studying the industrial

relations in the sense that it focuses on participants in the
process, environmental forces and the output.
Environmental forces Participants in the system Out puts

Market or
budgetary restraints Union-management
Rules of the
government workplace
Technology

Distribution of
power in society
INDUSTRIAL CONFLICT
 INDUSTRIAL CONFLICT

When different groups (unions, management, and

workers) different orientations and perceptions of their
interests, conflict occurs.

At organizational level, it occurs due to

The interactions of union leaders and management,
union leaders and workers, and unions and workers
and management.

These groups manifest their conflict in many forms.

Union management conflict-
• Unions- Non cooperation, arguments, hostility, stresses and
tensions, unwilling ness to negotiate, absenteeism, work to
rule, demonstration, morcha, dharma

Management- Unwillingness to negotiate, termination,

demotion, layoffs, lockouts
Management workers conflict-
Workers-Unorganized withholding of efforts, intentional
waste and inefficiency, labour turnover, instances of breaking
of rules, strikes

Management- Autocratic supervision, overstrict discipline,

penalties, unnecessary firing, , demotion, layoffs, lockouts
 Sources of industrial conflict

 share of revenue

 relative share of wages and salaries

 changes in staffing levels

 welfare of employees

 technological change

 change in work methods/duties

 change in work location

 Causes of industrial conflict
 Economic – Wages, bonus, overtime payment etc.

 Political- political instability, political affiliation of unions

 Technological – Change, adaptation, resistance, fear of

unemployment

 Psychological- interpersonal conflict, motivation and

attitudinal problems

 change in work methods/duties

 change in work location

 critical causes of industrial conflict

 income distribution

 job security

 managerial control
 How to solve conflicts

Be calm.

Always show respect.

Discuss or debate.

Apply rationality.

Acknowledge emotions.
Cont…

Be precise.

Think creatively.

Accept the situation.

Change the environment.

Compromise.

Change the wording.

 Conclusion
All the big organizations are needed the Department of
Industrial Relation

It will constitute and solve all the problems and needs of
the employer and employees.

IR Department leads the organization in a peaceful way

 BIBLIOGRAPHY
Book Resources

Dynamics of Industrial Relation-Mamoria & Gankar

Himalaya publishing house.

Web Resources

www.HR.com
www.IRconflict.com
Thank you……………..