INDUSTRIAL

RELATIONS
 Meaning and Concept of Industrial Relations

In the term Industrial Relation, “Industry” means any

productive work or more specifically production process
and “Relation” is human relation in the production process.
Many scholars and specialists defined Industrial Relation
from their own perspective.

In normal sense, the relationship between the owner and

the employees is called industrial relation.
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 ."
 Define Industrial Relations (contd.)

V.B Singh, IR is a set of functional interdependence

involving historical, economic, social, psychological,
demographist, technological, occupational political and
legal variables .

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."
 INDUSTRIAL RELATIONS INCLUDES

1. The relations between

The term "Industrial employers and employees at the
relations" has been plant level.
variously defined by 2. The relation between the various
different writers. It unions.
may be seen that the 3. The relations between
basic feature of the employers or their organizations
various definitions of and trade unions at various level
IRs mentioned (Level of plant, region or industry
above, in spite of the and national level)
differences in words,
4. The relation between the state
remain the same and the unions.
thus industrial
relations includes: 5. The relation between the
employers and the government.
 Functions of IRS system

Industrial relations system fulfils at least three major functions:

• It defines the relative rights and responsibilities of workers,
managers and the state that establishes the power relationships
between them.
• It channels and controls the responses of workers and managers
to the dislocation frustrations and insecurities inherent in the
industrial process.
• 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.
 Objectives of IRs:
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.
 Scope of industrial relations

The scope of industrial relations include:

1. Economical: Wages, increment, bonus, pension, gratuity,
provident fund etc.
2. Organizational: Working terms & conditions, working period,
leave, work system etc.
3. Personnel Management: Selection procedure, appointment,
promotion, transfer, discipline, compliance, motivation,
punishment etc.
4. Welfare : Workers welfare, entertainment, sports, cultural
program etc.
 Scope of industrial relations

5. Behavioral: Behavior patterns between management and workers, or

workers and workers.
6. Tactical & Legal: Lay-off, lockout, strike etc.
7. Institutional: Weakness of the trade unions and their behavior,
violation of the law and contract by any party, inefficient management.
8. Political : Influence of the government on the management,
political influence and pressure on the trade unions.
9. Social: Influences of formal and informal groups, influences of
geographical areas on the management and workers.
 Three Actors of Industrial Relations

According to John T. Dunlop, 'Industrial societies necessarily

create industrial relations defined as the complex of
interrelations among workers, management and government.'

Thus three major participants or actors of industrial relations

viz., workers and their organizations, management and
government are identified.
 1. Workers and their organizations:

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.

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.
 2. Employers and their organizations:

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.

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.
3. Government:

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.

It tries to regulate the activities and behaviour of both

employees organizations and employers' organizations.
Three actors of industrial relations

Workers Employers

IRS

Government
 Forces which influence the pattern of industrial relations

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.

Some of the aspects arc mentioned below:

1. Social aspects
2. Psychological aspects
3. Political aspects
4. Economical aspects
 1. 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.
 2. Psychological aspects:

Several psychological aspects such as motivation, alienation and

morale are significant determinants of industrial relations.

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

3. Political aspects:

The political framework in different countries such as democratic

system, autocratic system, laissez-faire system are important
determinants of industrial relations.
 4. Economical aspects:
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.
Forces which influence the pattern of industrial relations

Social Psychological

IRS

Political Economical
CONDITIONS FOR GOOD INDUSTRIAL RELATIONS

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:
1. History of good industrial relations:

• 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.

2. Economic satisfaction of workers:

• 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.
3. Social and psychological satisfaction:

• 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.
4. Off the job conditions:

• 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.

5. Enlightened labour unions:

• 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.
6. Negotiating skills of management & workers:

Good industrial relations depend on the ability of employers, organizations

and trade unions to deal with their mutual problems freely, independently and
with responsibility.

7. Public policy & legislation:

Govt. become a third major force in determining IRs.

Government intervention helps in 3 ways:

• 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.
8. Better education:

Better education provide proper sense of responsibility and

thus they will he less influenced by outside forces.

9. Collective bargaining:

Collective bargaining is the cornerstone of good industrial

relations though the assistance of appropriate government
agencies might be necessary in public interest.
10. Harmonious industrial relations:

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.

11. Urge on the part of employers:

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

12. Genuine sympathy:

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

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.
Principles of sound industrial relations

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:

1. Recognition of the dignity of the individual and of his right to

personal freedom and equality of opportunity.
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

organizations of employers and employees who represent the
management and workers.
End
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