Industrial RelationsHRM Post-Midterm CourseTerm - III

Session 1

Dr. Ajay Singh

Understanding IR & its Relevance

What is Industrial Relations?

What is the relevance of studying IR?

Where IR is applicable?

What is the Subject Area of IR?Specific Definition: A study of relations between workers (& their union), Employers/ Management (& their Associations), State and institutions concerned with regulations of employment.

Broader Definition: All aspects of employment relations at work and employment between/among the parties of employment relations.(Industrial Relations or Employee Relations?)

Objectives of Industrial RelationsFrom Management Perspective:To achieve best return on capital and wagesCreate suitable work environment for better results

From Workers/ TUs Perspective:Improve wages and working conditionsTo secure redressed from grievances

From Government Perspective:To develop sound labour-management relationsFor social and economic development

Origin of the concept of IR (Global)Origin with Industrial Revolution: Influenced by conditions prevailed in post industrial Revolution era.

Historical Factors that led to the Origin & Growth: Large Scale ProductionEmployee alienationExploitation of Employees by employersInsensitive behaviour of managers/supervisors Poverty, class differences and job insecurity Condition prevailing around WW I and II brought Communists or socialist/ mixed economy ideas (govt. became the only or major employer)Role of ILO in propagating international labour standards

This has also led to emergence of IR as a independent field of study.

Origin of IR (India)Evolution of IR in India is traced from mid 19th Century

It can be distinctly divided in to three phases:Mid 19th Century to end of W.W. IEnd of W.W. I to the Indian IndependenceSince Independence

Other factors that influenced growth of IR and TUs in India (besides the global reasons mentioned in the previous slide)Mass IlliteracyHierarchyForeign Rule and political movementLack of any protection to workers till 2nd decade of the 20th Century

What Factors Influence IR framework (Global)? Historical growth & Industrialization process State Role & Ideology Legal Framework of the State Labour Market Extent Of Unionization Technology (level of advancement) Profile of Employees (general status and maturity levels) Management Style National Culture

Approaches to Study IR(Different perspectives which influenced IR study)I. Unitarist Perspective:

There is only one source of Authority: the Management

Assumes that capitalist values are legitimate

Believe that Conflict is unnecessary.

How is conflict resolved: Coercion/paternalism/HRM

***(A large section of the unorganized sector in India unitarism still prevails)

II. Pluralist PerspectiveThis perspective sees conflicts between management and employees as rational and inevitable.

Conflict is necessary, but it needs to be managed & resolved

Common interest and mutual dependence are perceived as necessary

In pluralism, both parities strive to exercise economic (wages & benefits) as well as political (control) power

Thus Org. is in a permanent/dynamic tension Conflict of interestsvariety of roles/institutions

Mgt. is expected to reconcile and not suppress conflict CB and Joint consultation are the variants of pluralism

Both parties survival interest; thus CB takes place

III. Radical (Marxian) PerspectiveProduction system is privately owned with only profit motive

Class Conflict is necessary for and a source of social change without conflict society will stagnate

Class conflict is caused by disparity in power

Differential access to education, media, govt. jobs Employees socialized into accepting the status quo

Law not independent referee

Justice: if revolution

Systems FrameworkSystems approach to IR is offered by John Dunlop

To him An IR system is a subsystem of society, distinct from but overlapping, other subsystems and can be divided into 4 interrelated elements comprising..

certain actors (Workers/reps; Employers/reps; Govt. & agencies)

certain contexts (Which affects actors decisions, such as. 1. Technological characteristics of workplace; 2. Market or budgetary constraints affecting the organization; and 3. Locus & distribution of power in society)

an ideology which binds the actors together

and determine a body of rules that constitute the output of the IRS

Dunlops Systems model of IR John T. Dunlop ContextTechnologyMarket/budgetaryconstraints Locus & distribution of Power in societyWork rulesSubstantive & proceduralIdeology Of IRProblems andissues that arrive in IRActorsGovernment/AgenciesWM/UnionsEmployers/Mgrs.

Structure and Process of IR

Social SystemEconomic SystemLegal SystemPolitical System

INPUTCollective bargaining Day-to-day interpersonal relations Jt. ConsultationLegislationMediationConciliationOUTPUTRULESGovt. and agencies WM/ Union Employers association

Accommo- dation

and

Conflict

Dunlops Criticism1. Over-emphasis on stability of the system Not very useful when roles of actors are changing With changing business environment new actors (such as customers and community also play important role in IR process and outcome)

2. Does not talk about different strategic choices actors make at different levels (Kochans Model elaborates this)

3. Ignores existence of other actors in Industrial Relations

4. More emphasis on roles than people (thus ignores behavioural aspects like human motivations and preferences)

Contemporary Developments Influencing IRDramatic Advance in technology, particularly ITResulting need for changing skill requirementsGrowth of service sector and structural shifts in employment from industrial to service sector Growing women and white/gold collar employeesIncreasing job mobilityDevelopment of non-union sectorsDecline in union memberships and union power; and falling rates of Industrial Disputes/ strikes(Are IR issues no more relevant?)

Key Strategic Shifts in IR in New EraAdversarial to Cooperative BargainingCollective Bargaining to Joint consultation systemsWorkers Participation to Employee InvolvementFrom hostility to CooperationDecentralization of IRFrom Industrial Relations to Employment RelationsReactive to proactive: (leading to IR-HRM integration)

Case: Willington AssociatesWhat do you think were the managerial failures which have led to this situation?

Can management meet the expectations of the staff and thus avoid a union-formation?

What factor will determine Wellington Associates decision whether or not to negotiate with the union?

Supposing the union does come up, what strategy should Wellington Associates adopt in handling the union as to promote cooperative working with it?

What are the leanings from the case?

AssignmentsTwo Group AssignmentsChapter/ Topic PresentationClass assignment

Case Discussion

Quiz

*****************