INDUSTRIAL RELATION

TRADITIONAL
LABOUR : MASTERSERVANT ILLITERATE NOTCONSCIOUS ILL MOTIVATED

PRESENT
HUMAN RELATIONS EDUCATED AWARE, INFORMED WILLING/MOTIVATED

TRADITIONAL PRESENT Management

AUTHORITATIVE AUTOCRATIC PATERNALISTIC PREROGATIVE COLLABORATIVE DEMOCRACTIC MUTUALITY RESTRICTIVE

WHAT IS INDUSTRIAL RELATIONS ?

The term 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. By relations we mean the relationships that exist within the industry between the employer and his workmen. In simple words Relation Between Employee & Employee, Employer & Employer, Employer & Employee. Hence we can say Employee Relation is part of Industrial Relations An Act Or Art Of Controlling Human Resources In Employment. Also Referred As Labor Relations, Legal Relations Etc. Two Inseparable Limbs. Interest Apparently Conflict But Complimentary.

Relations between the management of an industrial enterprise and its employees.

Process by which people and their organization interact at the place of work to establish the terms and conditions of employment

History
Institutionally, industrial relations was founded by John R. Commons when he created the first academic industrial relations program at the University of Wisconsin in 1920. Early financial support for the field came from John D. Rockefeller, Jr. who supported progressive labor-management relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in Colorado. Industrial relations was formed with a strong problem-solving orientation that rejected both the classical economists laissez faire solutions to labor problems and the Marxist solution of class revolution. It is this approach that underlies the New Deal legislation in the United States, such as the National Labor Relations Act and the Fair Labor Standards Act.

Over view
Industrial relations has become one of the most delicate and complex problems of modern industrial society. 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). Industrial relations scholars have described three major theoretical perspectives or frameworks, that contrast in their understanding and analysis of workplace relations. The three views are generally known as unitary, pluralist and radical. Each offers a particular perception of workplace relations and will therefore interpret such events as workplace conflict, the role of unions and job regulation vary differently. The radical perspective is sometimes referred to as the "conflict model", although this is somewhat ambiguous, as pluralism also tends to see conflict as inherent in workplaces.

Unitary perspective In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application. Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown. Pluralist perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions.

Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channeled towards evolution and positive change. Radical perspective This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this background. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the Marxist view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it.

IR Pivot of Relationship

Employer

Employee

Employee

Employee

Employer

Governing Bodies

Employee

Governing Bodies

IR covers most of the part of ER, where as ER is a part or IR

Human being pivot of this relationship: 1.exists independently, capable of intelligent thinking & responsible actions. Broad drives in human nature :mans innate sense of dignity, conscious of rights, self esteem, complex emotions in success. Opportunity & satisfaction. 2.seeks esteem of others craves recognition. wants to be trusted. wants to feel his dignity respected. 3. Instincts of survival: Conscious of requirements of material needs, Food , clothing, shelter and other necessities of social existence. 4. Security : assurance against hazards of future.

5. Social instincts :wants to join others to secure common interests. Team work 6. When these are satisfied, he is happy, Cooperative and productive. Basis of IR : Common tasks

Work / task
Governed by : Organizational requirement & human considerations. Therefore , optimum balance : good IR { external : environment also}. Ideally cordial IR is perfect harmony: But perfect understanding for all times - a myth. Humanly impossible to sink conflicts & differences for ever & completely. People will have grievances, conflicts & some differences.

Good and cordial IR does not pre-supposes total absence of conflicts. Thus : important : urge on the part of both to settle conflicts by mutual understanding. If poor IR - none happy Several apprehensions Fears in mind Poor morale Tension Therefore, suffer mentally & physically. All dislike tension & conflicts. Inherent desire & urge to end conflicts & tension. This is important in handling IR. At times people prolong: Political motive Negative approach Management by crisis Leadership by exhibition of bitterness Absence of collaborative desire.

Industrial relations: a framework 1.Quality of national polity : therefore, national attitude of cynicism. 2.To develop constructive work ethos as long term solution. 3.To extend family relation concept to co-worker relations. 4.Industrial managers to find best means to operate in existing climate. 5.To distinguish between union and employees. 6.This distinction results in: Trade union relations on institutional basis. Employees treated as constituency therefore, complete tus. 6.Therefore, need to establish social relationship. With tus involves: Assessment of strength/weakness; Their conscious countering. 7. Individual relationship : will involve :Fair wages/terms Good working conditions Responsiveness to individual/group problems. Care & concern for employee & family family feelings

Employee

Actors in IR

Management

Government

OBJECTIVES :
Congenial Labour mgmt relations Enhance economic status of the worker Regulate the production by minimizing industrial conflict Socialize industries by making government as employer Workers to have a say in management &decision making Encourage &develop trade union Avoid industrial conflict consequences

Industrial democracy

Functions 1. Communication is to be established between workers and the management in order to bridge the traditional gulf between the two. 2.To establish a rapport between managers and the managed. 3.To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of workers on the one hand and the management on the other hand, to avoid unhealthy, unethical atmosphere in an industry. 4.To lay down considerations which may promote understanding, creativity and co-operation to raise industrial productivity, to ensure better workers participation?

IMPORTANCE OF IR
Uninterrupted Production

Reduction in Industrial Disputes

High Morale Mental Revolution New Programme Reduced Wastage

SUCCESS OF IR
a) b) Top Management support Sound Personnel policies

c)
d) e)

Adequate practice should be developed by professionals

Detailed supervisory training Follow up results