Project on Industrial Relations

8/4/2019 Project on Industrial Relations

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PROJECT ON INDUSTRIAL RELATIONS

AS A MANAGEMENT TOOL

SUBMITTED BY TYBMS DIV.A

VISHAL GUPTA (28)

MAHESH PAANIGRAHEE (29)

MAYUR KUMTHEKAR (24)

ABHISHEK GAVANDE (21)

PRITAM GUJAR (22)

ROHIT SHINDE (23)


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CONTENTS :

Sr.NO DESCRIPTION

1 What is Industrial Relation?

2 Difference between HRM and IR

3 Scope, objectives and importance

4 IR System

5 Causes of poor IR

6 Approaches and principle of good IR

7 ILO and conflict management

8 Challenges under IR

9 Conclusion

10 Bibliography


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ACKNOWLEDGEMENT

It is a pleasure to have the opportunity to extend our heartiest

thanks to everybody who helped us through the successful

completion of our project, which was a great source of learning

and experience for us.

We express our gratitude to the company for allowing us to have

in depth knowledge of their industrial relation and also for

providing all the necessary information.

While working with professionally managed organization we haverealized the importance of practical experience and also to relate

our theoretical knowledge with the practical market place.


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What is Industrial relation?

Industrial relations has become one of the most delicate and

complex problems of modern industrial society.

Industrial progress is impossible without cooperation of labours

and harmonious relationships.

Therefore, it is in the interest of all to create and maintain good

relations between employees (labour) and employers

(management).

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 engaged.

By relations we mean the relationships that exist within the

industry between the employer and his workmen.

The term industrial relations explains the relationship betweenemployees and management which stem directly or indirectly from

union-employer relationship.

Industrial relations are the relationships between employees and

employers within the organizational settings.

The field of industrial relations looks at the relationship between

management and workers, particularly groups of workers

represented by a union.Industrial relations are basically the interactions between

employers, employees and the government, and the institutions and

associations through which such interactions are mediated. The

term industrial relations have a broad as well as a narrow outlook.


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Originally, industrial relations was broadly defined to include the

relationships and interactions between employers and employees.

From this perspective, industrial relations cover all aspects of the

employment relationship, including human resource management,employee relations, and union-management (or labour) relations.

Now its meaning has become more specific and restricted.

Accordingly, industrial relations pertains to the study and practice

of collective bargaining, trade unionism, and labour-management

relations, while human resource management is a separate, largely

distinct field that deals with non union employment relationships

and the personnel practices and policies of employers.

The relationships which arise at and out of the workplace

generally include the relationships between individual workers, the

relationships between workers and their employer, the

relationships between employers, the relationships employers and

workers have with the organizations formed to promote their

respective interests, and the relations between thoseorganizations, at all levels.

Industrial relations also includes the processes through which

these relationships are expressed (such as, collective bargaining,

workers participation in decision-making, and grievance and

dispute settlement), and the management of conflict between

employers, workers and trade unions, when it arises.


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Distinction between HRM and IR

The term human relations lays stress upon the processes of

inter-personal relationships among individuals as well as the

behavior of individuals as members of groups.

The term industrial relations is used widely in industrial

organizations and refers to the relations between the employers

and workers in an organization, at any specified time.

Thus, while problem of human relations are personal in character

and are related to the behavior of individuals where moral and

social element predominate, the term industrial relations is

comprehensive covering human relations and the relations between

the employers and workers in an organization as well as matters

regulated by law or by specific collective agreement arrived atbetween trade unions and the management.

However, the concept of industrial relations has undergone a

considerable change since the objective of evolving sound and

healthy industrial relations today is not only to find out ways and

means to solve conflicts or resolve difference but also secure

unreserved cooperation and goodwill to divert their interest andenergies toward constructive channel.


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Scope Of Industrial Relations

The scope of industrial relations includes all aspects of relationships

such as bringing cordial and healthy labour management relations,

creating industrial peace and developing industrial democracy.

The cordial and healthy labour management relations could be

brought in-

By safeguarding the interest of the workers; By fixing reasonable wages; By providing good working conditions; By providing other social security measures; By maintaining healthy trade unions; By collective bargaining.

The Industrial peace could be attained

By setting industrial disputes through mutual understanding andagreement;

By evolving various legal measure and setting up variousmachineries such as Works Committee, Boards of Conciliation,

Labour Courts etc.

The Industrial democracy could be achieved

By allowing workers to take part in management; and By recognition of human rights.


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Objectives of Industrial Relations

1. To bring better understanding and cooperation betweenemployers and workers.

2.To establish a proper channel of communication betweenworkers and management.

3.To ensure constructive contribution of trade unions.4.To avoid industrial conflicts and to maintain harmonious

relations.

5.To safeguard the interest of workers and the management.6.

To work in the direction of establishing and maintainingindustrial democracy.

7.To ensure workers participation in decision-making.8.To increase the morale and discipline of workers.


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9.To ensure better working conditions, living conditions andreasonable wages.

10.To develop employees to adapt themselves for technological,

social and economic changes.

11.To make positive contributions for the economic development

of the country.


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Importance of Industrial Relations

The healthy industrial relations are key to the progress and

success.

Their significance may be discussed as under

Uninterrupted production

The most important benefit of industrial relations is that this

ensures continuity of production. This means, continuous

employment for all from manager to workers. The resources are

fully utilized, resulting in the maximum possible production.

Reduction in Industrial Disputes

Good industrial relations reduce the industrial disputes.

Disputes are reflections of the failure of basic human urges or

motivations to secure adequate satisfaction or expression whichare fully cured by good industrial relations. Strikes, lockouts, go-

slow tactics, gherao and grievances are some of the reflections of

industrial unrest which do not spring up in an atmosphere of

industrial peace. It helps promoting co-operation and increasing

production.

High morale

Good industrial relations improve the morale of the

employees. Employees work with great zeal with the feeling in


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mind that the interest of employer and employees is one and the

same, i.e. to increase production. Every worker feels that he is a

co-owner of the gains of industry.

The employer in his turn must realize that the gains of industry

are not for him along but they should be shared equally and

generously with his workers. In other words, complete unity of

thought and action is the main achievement of industrial peace. It

increases the place of workers in the society and their ego is

satisfied. It naturally affects production because mighty co-

operative efforts alone can produce great results.

Mental Revolution

The main object of industrial relation is a complete mental

revolution of workers and employees. The industrial peace lies

ultimately in a transformed outlook on the part of both. It is thebusiness of leadership in the ranks of workers, employees and

Government to work out a new relationship in consonance with a

spirit of true democracy.

Reduced Wastage Good industrial relations are maintained on

the basis of cooperation and recognition of each other. It will help

increase production. Wastages of man, material and machines are

reduced to the minimum and thus national interest is protected..


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Industrial Relation System

An industrial relations system consists of the whole gamut of

relationships between employees and employers which are

managed by the means of conflict and cooperation.

A sound industrial relations system is one in which relationships

between management and employees (and their representatives)

on the one hand, and between them and the State on the other,

are more harmonious and cooperative than conflictual and creates

an environment conducive to economic efficiency and the

motivation, productivity and development of the employee and

generates employee loyalty and mutual trust.


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Three main parties are directly involved in industrial relations:

Employers: Employers possess certain rights vis--vis labors. They

have the right to hire and fire them. Management can also affect

workers interests by exercising their right to relocate, close or

merge the factory or to introduce technological changes.

Employees: Workers seek to improve the terms and conditions of

their employment. They exchange views with management and

voice their grievances. They also want to share decision making

powers of management. Workers generally unite to form unions

against the management and get support from these unions.

Government: The central and state government influences and

regulates industrial relations through laws, rules, and agreements.

It also includes third parties and labour


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Causes of Poor Industrial Relations

The main cause or source of poor industrial relations resulting in

inefficiency and labour unrest is mental laziness on the part of

both management and labour. However, the following are briefly

the causes of poor industrial relations:

1. Mental inertia on the part of management and labour;2.An intolerant attitude of contempt of contempt towards the

workers on the part of management.

3.Inadequate fixation of wage or wage structure;4.Unhealthy working conditions;5.Indiscipline;6.Lack of human relations skill on the part of supervisors and

other managers;

7.Desire on the part of the workers for higher bonus or DAand the corresponding desire of the employers to give as

little as possible;

8.Inappropriate introduction of automation without providingthe right climate;

9. Unduly heavy workloads;10. Inadequate welfare facilities;11.Dispute on sharing the gains of productivity;12. Unfair labour practices, like victimization and undue

dismissal.


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Approaches to Industrial Relations

Industrial conflicts are the results of several socio-economic,

psychological and political factors. Various lines of thoughts have

been expressed and approaches used to explain his complexphenomenon. One observer has stated, An economist tries to

interpret industrial conflict in terms of impersonal markets forces

and laws of supply demand.

To a politician, industrial conflict is a war of different ideologies

perhaps a class-war.

To a psychologist, industrial conflict means the conflicting

interests, aspirations, goals, motives and perceptions of different

groups of individuals, operating within and reacting to a given

socio-economic and political environment.


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Psychological approach

According to psychologists, problems of industrial relations havetheir origin in the perceptions of the management, unions and rank

and file workers. These perceptions may be the perceptions of

persons, of situations or of issues involved in the conflict. The

perceptions of situations and issues differ because the same

position may appear entirely different to different parties. The

perceptions of unions and of the management of the same issues

may be widely different and, hence, clashes and may arise

between the two parties. Other factors also influence perception

and may bring about clashes.

The reasons of strained industrial relations between the

employers and the employees can be understood by studying

differences in the perception of issues, situations and personsbetween the management groups and labour groups.

Sociological approach

Industry is a social world in miniature. The management goals,

workers attitudes, perception of change in industry, are all, in

turn, decided by broad social factors like the culture of the

institutions, customs, structural changes, status-symbols,rationality, acceptance or resistance to change, tolerance etc.

Industry is, thus inseparable from the society in which it

functions. Through the main function of an industry is economic,

its social consequences are also important such as urbanization,


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social mobility, housing and transport problem in industrial areas,

disintegration of family structure, stress and strain, etc. As

industries develop, a new industrial-cum-social pattern emerges,

which provides general new relationships, institutions andbehavioral pattern and new techniques of handling human

resources. These do influence the development of industrial

relations.

Human relations approach

Human resources are made up of living human beings. They want

freedom of speech, of thought of expression, of movement, etc.

When employers treat them as inanimate objects, encroach on

their expectations, throat-cuts, conflicts and tensions arise. In

fact major problems in industrial relations arise out of a tension

which is created because of the employers pressures and workers

reactions, protests and resistance to these pressures through

protective mechanisms in the form of workers organization,

associations and trade unions.

Through tension is more direct in work place; gradually it extends

to the whole industry and sometimes affects the entire economy

of the country. Therefore, the management must realize that

efforts are made to set right the situation. Conflicts cannot be

resolved unless the management must learn and know what the

basic what the basic needs of men are and how they can be

motivated to work effectively.


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Principle of Good Industrial Relations

The willingness and ability of management and trade unions todeal with the problems freely, independently and with

responsibility.

Recognition of collective bargaining. Desirability of associations of workers and managements

with the Government while formulating and implementing

policies relating to general economic and social measures

affecting industrial relations.

Fair redressal of employee grievances by the management Providing satisfactory working conditions and payment of fair

wage.


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Introducing a suitable system of employees education andtraining.

Developing proper communication system betweenmanagement and employees.

To ensure better working conditions, living conditions andreasonable wages.

To develop employees to adapt themselves for technological,social and economic changes.

To make positive contributions for the economic developmentof the country.


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Roles of state, management and

Trade union

Role of state in industrial relations

In recent years the State has played an important role in

regulating industrial relations but the extent of its involvement in

the process is determined by the level of social and economic

development while the mode of intervention gets patterned in

conformity with the political system obtaining in the country and

the social and cultural traditions of its people. The degree of

State intervention is also determined by the stage of economic


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develop. For example, in a developing economy like ours, work-

stoppages to settle claims have more serious consequences than in

a developed economy and similarly, a free market economy may

leave the parties free to settle their relations through strikesand lockouts but in other systems varying degrees of State

participation is required for building up sound industrial relations.

In India, the role played by the State is an important feature in

the field of industrial relations and State intervention in this area

has assumed a more direct form. The State has enacted

procedural as well as substantive laws to regulate industrial

relations in the country.

Role of management in industrial relations

The management have a significant role to play in maintaining

smooth industrial relations. For a positive improvement in their

relations with employees and maintaining sound human relations inthe organization, the management must treat employees with

dignity and respect. Employees should be given say in the affairs

of the organization generally and wherever possible, in the

decision-making process as well. A participative and permissive

altitude on the part of management tends to give an employee a

feeling that he is an important member of the organization a

feeling that encourages a spirit of cooperativeness and dedication

to work.

Management must make a genuine efforts to providecongenial work environment.


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They must make the employees feel that they are genuinelyinterested in their personal development. To this end,

adequate opportunities for appropriate programmes of

18training and development should be provided.

Managements must delegate authority to their employeescommensurate with responsibility.

They must evolve well conceived and scientific wage andsalary plan so that the employees may receive just

compensation for their efforts. They must devise, develop

and implement a proper incentive plan for personnel at all

levels in the organization.

There must be a well-planned communication system in theorganization to pass on information and to get feed back

from the employees.

Managements must pay personal attention to the problems oftheir employees irrespective of the fact whether they arise

out of job environment or they are of personal nature.

They must evolve, establish and utilize appropriatemachineries for speedy redressal of employees grievances.

Manageemnts must provide an enlightened leadership to thepeople in the organization.

An environment of mutual respect, confidence, goodwill and

understanding on the part of both management and employees in


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the exercise of their rights and performance of their duties

should prevail for maintaining good industrial relations

Role of trade unions in maintaining industrial

relations

The trade unions have a crucial role to play in maintaining smooth

industrial relations.

It is true that the unions have to protect and safeguard theinterests of the workers through collective bargaining. But at the

same time they have equal responsibility to see that the

organization do not suffer on account of their direct actions such

as strikes, even for trivial reasons.

They must be able to understand and appreciate the problems of

managements and must adopt a policy of give and take whilebargaining with the managements. Trade unions must understand

that both management and workers depend on each other and any

sort of problem on either side will do harm to both sides. Besides

public are also affected, particularly when the institutions

involved are public utility organizations.


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International Labour Organization (ILO)

The International Labour Organisatoin (ILO) was set up in 1919 by

the Versailles Peace Conference as an autonomous body associated

with the League of Nations.

The ILO was the only international organisation that survived the

Second World War even after the dissolution of its parent body.

It became the first specialized agency of the United Nations in

1946 in accordance with an agreement entered into between the

two organizations. India has been a member of the ILO since its

inception.

The aims and objectives of ILO are set out in the preamble to its

Constitution and in the Declaration of Philadelphia (1944) which

was formally annexed to the Constitution in 1946. The preamble

affirms that universal and lasting peace can be established only if

its is based upon social justice, draws attention to the existence

of conditions of labour involving injustice, hardship and privation

of a large number of people, and declares that improvement of

these conditions is urgently required through such means as the

regulation of hours of work, prevention of unemployment, provision

of an adequate living wage, protection of workers against sickness,disease, and injury arising out of employment, protection of

children, young persons and women, protection of the interests of

migrant workers, recognition of the principle of freedom of

association, and organisation of vocational and technical education.


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The Preamble also states that the failure of any nation to adopt

human conditions of labour is an obstacle in the way of other

nations desiring to improve labour conditions in their own

countries.

The three main functions of the ILO are;

To establish international labour standards; To collect and disseminate information on labour and

industrial conditions; and

To provide technical assistance for carrying ort programmesof social and economic development.

From the very beginning, the ILO has been confronted with the

tremendous task of promoting social justice by improving the work

and conditions of life in all parts of the world.


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Conflict Management

Conflict has to be resolved as soon as the optimum level is crossed and

before dysfunctional consequences start occurring. Following are some

of the techniques employed to resolve conflict.

Dominance through position

Quiet often managers use positional authority to fire a lower ranking

subordinate they consider to be a trouble-maker. Individuals, in

organisation, with rare exception, recognize and accept the authority

of their superiors as an acceptable way or resolving conflicts. Although

they may not be in agreement with these decisions, the abide by them.

Appeals procedures

The people in disagreements may appeal to higher authority to help

them to arrive at a solution by resolving the problem satisfactorily.

Liaison groups

To arbit differences between two warring factions, an arbitrator can

be appoint who can use this expertise and persuasion to achieve

coordination and get people together.

Reduce interdependence

On way to resolve conflict is to reduce interdependences. Departments

may be provided with resources that are independent of those

provided for other departments.


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IR-CHALLENGES

Employers are now compelled to view industrial relations and

human resource management from a strategic perspective; in

other words, not only from the traditional viewpoint of negotiating

terms and conditions of employment and performing a personnel

and welfare function. Industrial relations and human resource

management are directly relevant to competitiveness, and how

they are managed will impact on enterprise performance

e.g. its productivity and quality of goods and services, labourcosts, quality of the workforce, motivation, prevention of disputes

and not only their settlement, and aligning employee aspirations

with enterprise objectives.

Minimum Wages

In countries which have a legal minimum wage three concerns are

evident. The first is that minimum wage levels sometimes tend tobe fixed on extraneous considerations (e.g. political), or

on inadequate data needed to define the level of wages.

The second concern is that such instances have an adverse effect

on competitiveness in the global market and on employment

creation where the minimum wage is fixed above a certain level.

Flexible/Performance Pay

Many employers, and even some governments, have expressed a

wish to review traditional criteria to determine pay levels such as

the cost of living and seniority. Pay systems which are flexible


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The objectives of pay reform will not be achieved unless reforms

are the result of consensual

agreement and are part of a larger human resource managementstrategy and change in human

resource management systems.

Cross-Cultural Management

Asia is a heterogeneous region, characterized by ethnic, cultural,

linguistic and religious diversity.

Due to substantial increases in investment in Asia from both Asian

and Western investors, many employers and unions are dealing

with workers and employers from backgrounds and cultures

different to their own.

Many of the resulting problems and issues (reflected for instance

in the proliferation of disputes due to cross cultural

'mismanagement') fall within the concept of crosscultural

management.The problems arise due to differences in industrial relations

systems, attitudes to and of unions, work ethics, motivational

systems and leadership styles, negotiating

techniques, inappropriate communication, consultation and

participation procedures and mechanisms, values (the basic beliefs

that underpin the way we think, feel and respond), expectations of

workers and interpersonal relationships.These cross-cultural management issues in turn pose the following

problems:


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i. What particular industrial relations and human resource

management considerations at the regional, sub-regional and

country level affect the development of sound relations at theenterprise level in a cross-cultural environments

ii. What would be the most effective programmers for this

purpose'.?

iii. How can investors in Asia familiarize themselves with the

environmental and cultural considerations in the recipient country

relevant to their managing people at work?

iv. How could information be collected, analyzed and disseminated?

Dispute Prevention

Most countries (other than those in transition to a market

economy) have long-standing dispute settlement procedures at the

national level (conciliation, arbitration, industrial or labour courts).Essential as these are, they operate only when a dispute arises.

Equally important are dispute prevention through communication,

consultation and negotiation procedures and mechanisms

which operate largely at the enterprise level. They are not

particularly common in many Asian enterprises. Their importance

has increased in the current decade when changes in the way

organizations are structured and managed have created thepotential for workplace conflict.

A more positive movement from personnel management to

strategic human resource management is called for.


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Industrial Relations/Human Resource Management Training

Not many developing countries in the region have facilities fortraining in labour law and industrial relations - negotiation, wage

determination, dispute prevention and settlement, the several

aspects of the contract of employment, and other related

subjects such as safety and health.

More facilities are probably available in human resource

management (the distinction is becoming increasingly thin). Since

industrial relations have assumed a particularly important role in

the context of globalization, structural adjustment and in the

transition to a market economy, employers in each country would

need to identify what aspects of industrial relations resource

management should be accorded priority, how training in them

could be delivered, and what concrete role is expected from the

employers' organization.


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CONCLUSION

In todays competitive business world where profit is every thing

maintaining a balance between profit and industrial relation is not a

easy cup of tea.

There are tough competitions and thus there exists a lot of room to

improve so as to become the market leader from all aspects.

Industrial relation has become a management art as if it is efficiently

use it can be a boon to an organization.

Many believe that industrial relation and profit making are antonyms.

But IR is much required by an organization to have a longer run in the

competitive market.


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BIBLIOGRAPHY

Industrial Relations, Tata Mc Graw Hill WWW.kwalitychemicals.COM Michael V P, HRM and Human Relations,

Himalaya

.

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http://www.timesfoundation.com/http://www.timesfoundation.com/

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