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INDUSTRIAL RELATIONS
34

Ir introduction

Feb 13, 2017

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Investor Relations

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Page 1: Ir introduction

INDUSTRIAL

RELATIONS

Page 2: Ir introduction

Define Industrial Relations

Industrial relations means the nature of relationship between the employer and employee in an industrial organization.According to Pro.Dunlop, "industrial relations defined as the complex of interrelations among workers, managers and Government".

Biswanath Ghosh "Industrial relations is an art, the art of living together for purposes of production ."

Page 3: Ir introduction

V.B Singh, IR is a set of functional interdependence involving historical, economic, social, psychological, demographist, technological, occupational political and legal variables .

Define Industrial Relations (contd.)

According to Encyclopedia Britannica, " Industrial relations include individual relations and joint consultation between employers and work people at the place of work, collective relations between employers and the organizations and the trade unions and the part played by the state in regulating these relations."

Page 4: Ir introduction

The term "Industrial relations" has been variously defined by different writers. It may be seen that the basic feature of the various definitions of IRs mentioned above, in spite of the differences in words, remain the same thus industrial relations includes:

1. The relations between employers and employees at the plant level.

2. The relation between the various unions.

3. The relations between employers or their organizations and trade unions at various level (Level of plant, region or industry and national level)

4. The relation between the state and the unions.

5. The relation between the employers and the government.

Page 5: Ir introduction

Industrial relations system fulfils at least three major functions:

1 . It defines the relative rights and responsibilities of workers, managers and the state that establishes the power relationships between them.

2. It channels and controls the responses of workers and managers to the dislocation frustrations and insecurities inherent in the industrial process.

3. It establishes the network of rules,other substitutive and procedural, when govern the work place and work community.

IRs are therefore, a product of social and economical systems, they are not the cause but the effect of social, political and economic forces.

Functions of IRS system

Page 6: Ir introduction

The objectives of industrial relations are as follows:

1. To maintain and develop good employer and employee relations.

2. To maintain industrial peace.3. To safeguard the interests of labour and management.4. To avoid as per as possible, industrial conflicts.5. To establish industrial democracy.6. To help the economic development of the country.7. To encourage collective bargaining as a means of self-

regulation.8. To help maintain discipline amongst workers.9. To help Government in making laws.10. To help union and management to develop constructive

attitudes to other.

Objectives of IRS:

Page 7: Ir introduction

Scope of industrial relations

The scope of industrial relations include:

1. Relationship among employees between employees and their superiors or managers.

2. Collective relations between trade unions and management. It is called union management relations.

3. Collective relations among trade unions, employers associations and government.

Page 8: Ir introduction

According to John T. Dunlop, 'Industrial societies necessarily create industrial relations defined as the complex of interrelations among workers, management and government.'

Three Actors of Industrial Relations

Thus three major participants or actors of industrial relations viz., workers and their organizations, management and government are identified.

Page 9: Ir introduction

The total worker plays an important role in industrial relations. The total worker includes working age, educational background, family background, psychological factors, social background, culture, skills, attitude towards others work etc. Workers' organizations prominently known as trade unions.

I. Workers and their organizations:

The main purpose of trade unions is to protect the workers' economic interest through collective bargaining and by bringing pressure on management through economic and political tactics.

Page 10: Ir introduction

Employer is a crucial factor in industrial relations. He employs the worker, pays the wages and various allowances, regulates the working relations through various rules, regulations and by enforcing labour laws.

2. Employers and their organisations:

The employer expects the worker to follow the rules, regulations and laws. He further expects them to contribute their resources to the maximum. The difference between the demands of worker and employer results in industrial conflicts.

Page 11: Ir introduction

Government plays a balancing role as a custodian of the nation. Government exerts its influence on industrial relations through its labour policy, industrial relations policy, implementing labour laws, the process of conciliation and adjudication by playing the role of a mediator etc.

3. Government:

It tries to regulate the activities and behaviour of both employees organizations and employers' organizations.

Page 12: Ir introduction

Workers

IRS

Employers

Government

Three actors of industrial relations

Page 13: Ir introduction

Introduction:

There are some aspects that influence the patterns of industrial relations. These influences act, interact and reinforce one another in the course of developing industrial relations.

Forces which influence the pattern of industrial relations

Some of the aspects arc mentioned below:

I. Social aspects

2. Psychological aspects

3. Political aspects

4. Economical aspects

Page 14: Ir introduction

I. Social aspects:

There are certain social aspects which influence the pattern of industrial relations. such as:

a) Social status: Workers- have a different social identity and status. As a result, there is a distance in relationship.

b) Social groups: Different social groups such as master- servant, higher-caste, lower caste influence the pattern of industrial relations.

c) Social values: Different social values play their role in setting the pattern of industrial relations.

Page 15: Ir introduction

Several psychological aspects such as motivation, alienation and morale are significant determinants of industrial relations.

(Motivation- job satisfaction, job advantages, job enrichment etc )

2. Psychological aspects:

Page 16: Ir introduction

The political framework in different countries such as democratic system, autocratic system, laissez-faire system are important determinants of industrial relations.

3. Political aspects:

Page 17: Ir introduction

There are certain economic influences which provide the basic setting as well as the broader framework for industrial relations. The economic status of the employer, and the workers in society differs widely which influences the pattern of industrial relations.

Some other aspects of economic environment such as -• Unemployment• Inflation• Demand for the product have a serious bearing on the

pattern of relationship in an industrial setting.

4. Economical aspects:

Page 18: Ir introduction

Social

Political Economical

Psychological

IRS

Forces which influence the pattern of industrial relations

Page 19: Ir introduction

When in any industry or organization willing co-operation emanates from employees towards the achievement of organizational goals, there is said to be good industrial relations.

Good industrial relations depend on a great variety of factors. Some of the more important factors are given below:

CONDITIONS FOR GOOD INDUSTRIAL RELATIONS

Page 20: Ir introduction

A good history of industrial relations means harmonious relationship between management and workers. On the other hand, a bad history is characterized by militant strikes and lockouts. Both have perpetuating tendency that dose not mean they cannot change their attitude.

The probability of conflict is greater when conflict has become accepted as normal. The probability of peaceful relations is greater when mutual understanding is expected to continue as a part of standard operations.

1. History of good industrial relations:

Page 21: Ir introduction

Industrial relations depend on the economic satisfaction of workers. Much of man's conduct is dominated by the basic survival need because he wants to survive.

2. Economic satisfaction of workers:

Page 22: Ir introduction

Identifying the social and psychological needs of workers is a very important step to determine the good industrial relations. It has been revealed by the Hawthorn; experiments a man has several other needs besides his physical needs.

Employment relationship is not only a economic contract, supportive climate requires more than economic rewards. The supportive climate of an organization is essentially built around social and psychological rewards. Worker's participation in management, job enrichment, suggestion schemes, redressal of grievances, effective two way communication are some social & psychological rewards.

3. Social and psychological satisfaction:

Page 23: Ir introduction

For good IRS it is not enough that the worker's factory life alone should be taken care of. His home life is not totally separable from his work life and his emotional condition is not separate from his physical condition. Each affect the other. For this reason worker's off the job conditions should also be improved.

4. Off the gob conditions:

Page 24: Ir introduction

Strong and enlightened labour movement can help to promote the status of labour without hampering the interests of management. Labour unions always talk much of the employer's obligations to the workers, but say very little about the worker's responsibility to the employer.

5. Enlightened labour unions:

Page 25: Ir introduction

Good industrial relations depend on the ability of employers, organizations and trade unions to deal with their mutual problems freely, independently and with responsibility.

6. Negotiating skills of management & workers:

Page 26: Ir introduction

Govt. become a third major force in determining IRs.

Government intervention helps in 3 ways:

7. Public policy & legislation:

• It helps in catching and solving problems before they become serious.

• It provides formalized means to the workers and employers for emotional release of dissatisfaction.

• It acts as a check and balance upon different management action.

Page 27: Ir introduction

Better education provide proper sense of responsibility and thus they will he less influenced by outside forces.

8. Better education:

Page 28: Ir introduction

Collective bargaining is the cornerstone of good industrial relations though the assistance of appropriate government agencies might be necessary in public interest.

9. Collective bargaining:

Page 29: Ir introduction

The peaceful and harmonious industrial relations depend

on the desire of the employers/management to the bargain with their employees on the basis of equality.

10. Harmonious industrial relations:

Page 30: Ir introduction

Good industrial relations depend on the realization and urge on the part of employers /managements for the promotion of their workers welfare.

11. Urge on the part of employers:

Page 31: Ir introduction

Good IRs depend on the genuine sympathy of the general public towards labour .

12. Genuine sympathy:

Page 32: Ir introduction

Thus, the existence of strong, independent, responsible and democratic trade unions and employers organizations, the recognition of trade unions and the promotion of collective bargaining, the machinery for the peaceful settlement of industrial disputes, the existence of good human relations at the level of the undertaking and the removal of discriminations of all types based on any ground including race, religion, nationality or language would go a long way to improve the pattern of industrial relations in a country.

Conclusion:

Page 33: Ir introduction

Maintenance of sound industrial relations is as crucial and difficult as that of human relations.

Hence, the following principles should be followed to maintain sound industrial relations:

Principles of sound industrial relations

1. Recognition of the dignity of the individual and of his right to personal freedom and equality of opportunity.

Page 34: Ir introduction

Principles of sound industrial relations (contd.)

2. Mutual respect, confidence, understanding, goodwill and acceptance of responsibility on the part of both employer, management and workers and their representatives in the exercises of the rights and duties in the operation of the industry.

3. Similarly, there has to be an understanding between the various organisations of employers and employees who represent the management and workers.