industrial relations-version 2

8/9/2019 Industrial Relations-Version 2

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Future of Industrial Relations

Group- 1

Shoaib Sadiq 05

Jaspreet Hanspal 19

Tauseef Kazi 25

Bishwabhusan Mishra 32

Pooja Shetty 47

Rahul Shetty 48

Vivek Mhatre 59


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W HAT IS INDUSTRIAL RELATIONS ?

IR is a relationship between management andemployees or among employees and theirorganizations, that characteristics and grow out of

employment.

IR may be defined as the complex of inter- relationsamong workers, managers and government.


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O bjective of IR

To promote and develop labor managementrelation.To regulate the production by minimizing industrialconflictsTo provide opportunity to workers to involve indecision making process with management.

To encourage and develop trade unions in order toimprove the workers' strength.


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C hange in IR scenario

Indian industry had enjoyed the parental affection of thegovernment under various pleas of socialism, welfare state,economic and industrial development, etc.However, post liberalization it had to fight for itself for its verysurvival against the global giants on its own.From a C RP C ontrolled , Regulated

, and Protected economy,India made a shift to theLPG Liberal , Privatized , and Global economy

This caused shift in great ParadigmC hange from protected economy to

globalised, privatised economy


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C hange in IR scenario

Globalization impact on Indian industry

4 major hits

First generation competition. Second generation systems and procedures.

Third generation technologies and technical know-how. Fourth generation mindset.


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Role of IR partners

The 3 main pillars of IRManagement

Trade UnionGovernment


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C hanging Terms of Debate


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C hange in role of Management

The focus will now be

From QUANTITY to QUALITY.From Production target to Process of production.

Quality certifications like IS O 9000Price profit ratio- tailor the price of the product to the size ofthe pockets of their potential customers.Substantially reduction in expectation of abnormal profits andwindfall gains.Reduction in cost of production to make products morecompetitiveTechnological advancement


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C hange in role of Trade Unions

The focus will now be

From Working conditions of employees to Terms ofemployment.C lauses of appointment letterPart time, repartition employment concept for the employees.Emphasis on appropriate training and empowermenttechniques than short term benefits of wages & welfare.O

pportunity available with the workers to upgrade theirexisting skills together with acquiring new ones.The fight against managerial mismanagement will be replacedby the fight against technological obsolescence.


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C hange in role of Trade Unions

Survival of business will be of utmost important, as their ownsurvival will depend on it.

This may lead to single union concept and disaffiliation fromthe C entral Trade Unions

Both the management and the trade unions will jointly have todevise strategies to successfully bargain with the marketforces.

Efficiency and productivity will become the new and mutuallyagreed upon parameters in all bargaining between theparties.


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C hange in role of Government

The role of government as a mediator will be minimized.

Review & reform of regulatory restrictions

Aim to improve competitiveness & adaptation to theinternational environment & encourage innovation.

Promote industrial development

Recognition of concept of globalization & need forinternationalization


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C hange in role of Government

Building competitive firms

Building a competitive environment shaped by industry

development principles

Focus on strong growth, low inflation, low interest rates, strongcorporate profits, deregulation, tax reform

Maximize macro effects at firm level, IR reform, improvedinfrastructure.

Free trade agreements with various countries


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Future of IR

Adopting to C HANGE

Vision, Value and Mission will dictate the norms of business

ethics.

C hanges in the nature of labour force, union approaches tomanagement process, physical and behaviour characteristics of

internal forces, all affecting the strategies of organization. Allstriving for achievement of organizational goals


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Future of IR

C ompetitiveness in terms of quality and price will die.To make the business survive and grow, changes in structureand style, attitude and approach, and system and standardsare inevitable.Technology & communication will play a major role.IR in future will move in the direction of comradeship betweenthe two main IR protagonists management and trade unionfor survival & growth in the market forces.Transparencies in the HR policies and practices.


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Future of IR

Factors of change:C hange in Economic environmentMarket forces

C ompetitiveness of product interms of quality & priceC hange in structure & style,Attitude & approach,

Systems & standards


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Future of IR-Employee Relations

Excellent industrial relations are and will continue to be theend-product of sound HR policies and programmes based onhuman engineering.

HR managers have to ensure that their policies aretransparent, based on performance thereby enhancing humanvalues.Employee participation, Group dynamics leading to teamspirit, both blue and white collar motivated employees andcommunication at last as nervous system of organisation willform the core dimensions of excellent IR.


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Future of IR-Employee Synergy

Dimensions of different cadres of employees as workers andmanagers will gradually diminish.

Erstwhile lesser informed workers have turned into knowledgeworkers who in turn will comfortably compete with their moreprivileged superiors-the Managers.

The distinction thus will disappear, so traditional approach ofmaintaining IR will not work.

HR Manager has to be fully prepared, competent, transparentand logical while dealing with workforce.


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Future of IR- Empowerment

Employees should be empowered to acquire:

C onstructive roles in the management.

Govern the process of utilisation of resources.

C hances of conflicts and confrontation will be minimal.


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Future of IR- C ompensation

C ompetitive compensation and remuneration system withthrusts for payment by results will demand greater focus in thefuture.

Incentive Schemes,

Variable Performance based pay,Annual Rewards and Bonus Schemes,Employee Stock O ption Schemes etc.

C ontrol of unionised employee cost will continue to demand alot of effort-

High productivity andManpower utilisation with competitive payments .


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Future of IR- Stakeholders Relations

Joint union-management efforts based onImproving quality of work lifeO rganizational effectivenessEmphasis on employees self-esteem with positive human andbusiness outcomes.O pen channels of communications to build trustC ommitment of greater sharing of information of business with

unions, work groups, organizational unitsGreater communication about design and administration ofpay systems.The human resources manager will need specific knowledge,skills and behaviour to cater to employees needs


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There is gradual realization by both the partners that tosurvive, both have to surrender their sectional interests at thealter of the super ordinate interest of the economy.

O nly time will tell if both really join hands to face and fight

the phantom of the market forces that have unleashed a terrorof insecurity and extinction together with the bright hopes ofrevival and growth.

C onclusion


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THANK YOU

industrial relations-version 2

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