INDUSTRIAL RELATIONS

Trends in Industrialization-at early stage

Loss of freedom Unhygienic working conditions Employment of children Freedom to contract Dynamics of market

INDUSTRIAL RELATIONS-CONCEPT

Deals with people who are the base of industry

Behind every activity there is a human being Problem of IR is most prominent Process by which people and their organ

interact at the place of work to establish terms & conditions of employment

Denotes employee-employer relations or Labour-management relations

NOTABLE FEATURES OF IR

Involves both conflict & co-operation Environmental issues impact strongly-

technology, socio-economic, political and labor policy, trade union’s attitude

Relates to study of Laws, rules, awards of courts

SCOPE OF IR Labour relations I.e.relations between

union & management Employer-employee relations-

relations between mgmt & employees Group relations-relation between

various groups of workmen

COMPONENTS OF IR SYSTEMIt comprises of 3 actors:-

Workers (Employees) and their organizations (Trade unions)

Management (Employers) and their organizations (Employers assoc/ federation)

Government

APPROACHES TO IR Psychological approach:

Mgmt. and labour see each other as non dependable and looked upon with suspicion

Sociological approach: Value

systems,customs,norms,attitude & perception of both labour and mgmt affect IR

Scanning of all social factors call of time

Human relations approach: Most delicate & tricky HRM policies relating to motivation

and leadership style play key role Study of human needs very

important-QWL

APPROACHES TO IR (contd..)

Socio-Ethical approach: IR has some ethical implication Creation of willingness to co-operate as

partners Development of a code of ethics & a

mgmt philosophy Mgmt. and workers should feel the urge

for joint consultationVVGiri -”Stress on collective bargaining &

mutual negotiations for settlement of disputes

APPROACHES TO IR (contd..)

Gandhian approach: Peaceful co-existence of capital & labour Resolution of conflict by non-violent,non

co-operation Accepted worker’s right to strike but in a

just case Capitalist expected to hold industry in

trust for community.No room for conflict India’s IR system largely influenced by

this approach

APPROACHES TO IR (contd..)

• Market Restraints

• Technology

• Distribution of Power in Society

Union – Mgmt Govt.

Rules of Workplace

Output is result of interaction

System approach:John Dunlop developed a system approachIt is an ideological linkage

APPROACHES TO IR (contd..)

INDUSTRYEMPLOYER LABOUR[MANGEMENT] [TRADE UNION]

INDUSTRIAL RELATION IS INTERACTION BETWEEN THE TWO STAKE-HOLDERS AT WORK PLACE TO

HARMONISE CONFLICTING INTERESTS

MANAGEMENT INTEREST HIGH LEVEL OF PRODUCTIVITY MAXIMUM PROUCTION OPTIMUM UTILISATION OF RESOURCES DICIPLINED WORK FORCE INDUSTRIAL PEACE TO MAXIMISE PROFIT

LABOUR INTEREST HIGH REMUNERATION FULFILMENT OF HUMAN NEEDS AND WANTS RECOGNITION, OTHER SOCIAL NEEDS PARTICIPATION IN DECISION MAKING PROTECTION OF RIGHTS, RIGHT TO

ORGANISE AND UNIONISE CAREER GROWTH JOB SATISFACTION

HOW TO HARMONISE CONFLICTING INTERESTS MANAGEMENT TRANSPARENCY INFORMATION SHARING BE FAIR AND REASONABLE GRIEVANCE REDRESSAL

MECHANISM SOCIAL DIALOGUE COMPLIANCE WITH

LABOUR LAWS HUMAN RESOURCE

DEVELOPMENT RECOGNITION

TRADE UNION RECOGNISE RIGHTS AND

OBLIGATIONS OF MANAGEMENT

KNOW CAPACITY OF INDUSTRY TO PAY

REASONABLE EXPECTATIONS AND DEMANDS

EDUCATION OF WORKERS SETTLEMENT OF DEMANDS

ONLY THROUGH LEGITIMATE, DEMOCRATIC METHODS

PRE-REQUISITES FOR SUCCESSFUL IR PROGRAMME

Top management support Development of sound HRM & IR

policies Implementation of effective HR &

People friendly practices Provision of adequate training

CHARACTERISTICS OF IR SYSTEMS IN INDIA TODAY Unions restricted to organized sector &

multiplicity Varying management styles Excessive state intervention Lacunae in Labour legislation Disputes largely relating to wages Collective bargaining gaining popularity No stated National Policy on IR More accommodating mood setting amongst

workforce in wake of New Economic Policy

ROLE/BEHAVIOUR OF ACTORS(1) WORKERS:

Form unions to safeguard interests and act as bargainers

In India there are 10 central organizations

Mainly political institutions and a regulatory device to management actions

ROLE/BEHAVIOUR OF ACTORS

Key actor in the system Manner to get work done determines the

quality of relations Likert identified following leadership styles:

Exploitative & authoritative system Benevolent authoritative system Consultative Management Participative Style

(2) MANAGEMENT

Govt acts as a regulator & judge Till 19th century ,govt. never bothered to

intervene Only early 40’s govt. laid need for

consultation with labour & management. Enacted legislations, acts & labour laws.“ In globalization set up,increasing awareness

of workers,complexities,the relations of 3 actors will become more complex’

ROLE/BEHAVIOUR OF ACTORS(3) GOVERNMENT