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http://www.google.co.in/imgres?q=industrial+relations&start=89&um=1&hl=en&sa=N&biw=1024&bih=506&tbm=isch&tbnid=4btW7AVqZ4zUsM:&imgrefurl=http://raj-projects.blogspot.com/2009/05/importance-of-industrial-relations.html&docid=wTCqg2mzhneFdM&imgurl=http://4.bp.blogspot.com/_1_BL7b5qv1w/ShY-B7qwLxI/AAAAAAAAABM/UrSfcERuv1A/s320/b74.jpg&w=127&h=109&ei=76X_T4roEsf5rAfSlNmGBg&zoom=1&iact=hc&vpx=821&vpy=52&dur=769&hovh=87&hovw=101&tx=80&ty=51&sig=116716921774274520040&page=7&tbnh=87&tbnw=101&ndsp=18&ved=1t:429,r:5,s:89,i:21

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Industrial relations has become one of the most delicate and

complex problems of modern industrial society.

Industrial progress is impossible without cooperation of labors

and harmonious relationships.

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

relations between employees (labor) and employers

(management).

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The term Industrial Relations comprises oftwo terms: Industry and Relations.

Industry refers to any productive activity inwhich an individual (or a group of individuals)is (are) engaged.

By relations we mean the relationships thatexist within the industry between theemployer and his workmen.

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The term industrial relations explains the

which stem directly or indirectly fromunion-employer relationship.

OLD ASPECT: industrial relations covers all aspects of the

employment relationship, including human resource management,

employee relations, and union-management (or labour) relations.

NEW ASPECT: 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.

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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 withthe organizations formed to promote theirrespective interests, and

the relations between those organizations, at alllevels.

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Industrial Disputes Act 1947 defines an industry as any systematic

activity carried on by co-operation between an employer and his

workmen for the production, supply or distribution of goods or

services with a view to satisfy human wants or wishes whether or not

any capital has been invested for the purpose of carrying on such

activity; or such activity is carried on with a motive to make any gain

or profit.

Thus, an industry is a whole gamut of activities that are carried on by

an employer with the help of his employees and labors for production

and distribution of goods to earn profits.

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An employer can be defined from different

perspectives as:-

a person or business that pays a wage orfixed payment to other person(s) in exchangefor the services of such persons.

a person who directly engages aworker/employee in employment.

any person who employs, whether directly orthrough another person or agency, one or

more employees in any scheduledemployment in respect of which minimumrates of wages have been fixed.

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Employee is a person who is hired by anotherperson or business for a wage or fixed paymentin exchange for personal services and who doesnot provide the services as part of anindependent business.

An employee is any individual employed by anemployer.

A person who works for a public or private

employer and receives remuneration in wages orsalary by his employer while working on acommission basis, piece-rates or time rate.

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The state of being employed or having a job.

The market in which workers compete for

jobs and employers compete for workers. Itacts as the external source from whichorganizations attract employees.

These markets occur because different

conditions characterize different geographicalareas, industries, occupations, andprofessions at any given time.

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Industrial relations encompasses a set ofphenomena, both inside and outside theworkplace, concerned with determining andregulating employment relationship

It refers to the Relationship betweenmanagement and employees or among

employees and theirorganization that characterize and grow outof employment.

Dale Yoder

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IR involve attempts to have workable

solutions between conflicting objectives and

values, between incentive and economic

security, between discipline and industrial

democracy, between authority and freedom

and between bargaining and cooperation.

R A Lester

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http://www.google.co.in/imgres?q=industrial+relations&um=1&hl=en&sa=N&biw=1024&bih=506&tbm=isch&tbnid=LhQocGwt0pK52M:&imgrefurl=http://train-srv.manipalu.com/wpress/?p=135969&docid=aqPNqVJgi-h_gM&imgurl=http://train-srv.manipalu.com/wpress/wp-content/uploads/2010/10/clip-image00284.jpg&w=379&h=334&ei=N6T_T4SSCtHQrQfH9PWOBg&zoom=1&iact=hc&vpx=742&vpy=166&dur=5632&hovh=211&hovw=239&tx=103&ty=93&sig=116716921774274520040&page=1&tbnh=128&tbnw=143&start=0&ndsp=10&ved=1t:429,r:4,s:0,i:112

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IR arise out ofemployeremployee relations

IR is a web of rules: formed by the interaction of Govt, industry & labor

IR is multi dimensional: influenced by complex set of institutional.economic & technological factors

IR is dynamic and changing: keep pace with employee expectations,trade unions, employer associations and other economic and socialinstitutions of society

IR is characterized by forces of conflict and compromise. Individualdifferences and disagreements resolved through constructive means.

Govt influences and shapes IR: with its laws, rules, agreementsthrough executive and judicial machinery

Scope of IR is very wide as it covers grievances, disciplinary measuresethics, standing orders, collective bargaining, participatory schemesand dispute settlement mechanism etc

Interactive and consultative in nature: in resolvingconflict,controversies and disputes between labor and management.

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relationships between management and employees (andtheir representatives) on the one hand, and betweenthem and the State on the other,

are more harmonious and cooperative than conflictualand

creates an environment conducive to economic efficiencyand the motivation, productivity and development of the

employee and

generates employee loyalty and mutual trust.

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are directly involved in industrial

relations:

Employers possess certain rights vis--vislabors. 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.

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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.

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The central and state government

influences and regulates industrial relations

through laws, rules, agreements, awards of courtad the like. It also includes third parties and

labour and tribunal courts.

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Uninterrupted production Reduction in Industrial Disputes

High morale

Mental Revolution Reduced Wastage

Thus, it is evident that good industrialrelations is the basis of higher production

with minimum cost and higher profits. It alsoresults in increased efficiency of workers.

http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/

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industrial relations are the sum of institutionalprocesses that establish and administer the rulesregulating workplace relations

industrial relations are the sum of socialpsychological interactions between individuals

industrial relations are the sum of institutions,interactions and processes that are a product ofwider social and economic influences, inparticular the class divisions of contemporarycapitalism

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contracts of employment (involving trade

unions, worker collectives, labour courts and

government agencies), as well as management

of conflict arising out of the personal

interactions of individuals in the workplace, are

part of labour management functions ( i.e.

recruitment, selection, training, development,

performance management, and so on)

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(or ):

contracts of employment (involving trade unions,

worker collectives, labour courts and government

agencies), as well as the management of conflict

arising out of the personal interactions of

individuals in the workplace, are part of workplace

relations, together with the normal functions of

Human Resource Management.

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To enhance economic status of worker

To avoid industrial conflicts and their consequences

To extend and maintain industrial democracy

To provide an opportunity to the worker to have a say in the

management decision making

To regulate production by minimizing conflicts

To provide forum to the workers to solve their problems

through mutual negotiations and consultations with

management

To encourage and develop trade union in order to develop

workers collective strength

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Management Union relationship

Employer Employee relationship

Relationship amongst various groups of employees

Effect of extraneous factors like state, socio-political-

economic factors on workplace relationships

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Co-operation

Conflict

Authoritarian

Paternalism

Evolution

Revolution

Input Conversion Output

Conflict(differences)

Institutionsand

processes

Regulation(rules)

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In unitarism, the organization is perceived as anintegrated and harmonious system, viewed as one

happy family.

A core assumption of unitary approach is thatmanagement and staff, and all members of theorganization share the same objectives, interestsand purposes; thus working together, hand-in-hand, towards the shared mutual goals.

Furthermore, unitarism has a paternalistic

approach where it demands loyalty of allemployees. Trade unions are deemed asunnecessary and conflict is perceived as disruptive.

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Working practices should be flexible.

If a union is recognized, its role is that of afurther means of communication between groupsof staff and the company.

The emphasis is on good relationships andsound terms and conditions of employment.

Employee participation in workplace decisions isenabled.

Employees should feel that the skills and

expertise of managers supports their endeavors.

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Staffing policies should try to unify effort, inspire and motivate

employees.

The organization's wider objectives should be properlycommunicated and discussed with staff.

Reward systems should be so designed as to foster to secureloyalty and commitment.

Staff-management conflicts - from the perspective of the unitaryframework - are seen as arising from lack of information,

inadequate presentation of management's policies.

The personal objectives of every individual employed in thebusiness should be discussed with them and integrated with theorganizations needs.

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In pluralism the organization is perceived as being made up of

powerful and divergent sub-groups - management and tradeunions.

Trade unions are deemed as legitimate representatives ofemployees.

Conflict is dealt by collective bargaining.

Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony.

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The firm should have industrial relations and personnel specialists who

advise managers and provide specialist services in respect of staffing

and matters relating to union consultation and negotiation.

Independent external arbitrators should be used to assist in the

resolution of disputes.

Union recognition should be encouraged and union representatives

given scope to carry out their representative duties

Comprehensive collective agreements should be negotiated with unions

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Marxists like pluralists also regard conflict as inevitable but see it asa by product of capitalistic society where as pluralist believe that the

conflict is inevitable in all organizations For Marxists IR has wider meaning. For them conflict arises not

because of rift between management and workers but because ofthe division in the society between those who own resources andthose who have only labor to offer.

Marxist approach thus focuses on the type of society in which anorganization functions.

Industrial conflict is thus equated with political and social unrest

Trade Unions are seen both as labor reaction to exploitation bycapitalists, as-well-as a weapon to bring about a revolutionarysocial change. Wage related disputes as secondary

For them all strikes are political and they regard state intervention (via legislations and creation of Industrial Tribunals ) as supportingmanagements interests, rather than ensuring a balance between thecompeting groups.

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EMPLOYEES

EMPLOYEEASSOCIATIONS

GOVERNMENT

EMPLOYERS

EMPLOYERASSOCIATION

COURTS&

TRIBUNALS

EMPLOYER-EMPLOYEERELATIONS

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WORKERS and their ORGANIZATIONS( Trade Unions or Associations )

Trade unions have a protecting role of safeguarding workersinterests,

Regulating function of ensuring implementation of statutes / Acts

Ensuring non-violation of workers rights

Trade Union Act provides Status and Authority for the power vestedin them

This power is used for negotiating Wage Interests, better benefits

and service conditions, concessions, more amenities and welfareschemes

Structure of Workers organization or Trade unions differs fromcountry to country

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An organization is represented through officials designated inthe organization structure for coordination of activities

relating to:

Administering employee benefits

Regulating terms and condition of employment

Providing welfare and social security benefits Coordination is done through graded hierarchical and formal

communication channels of orders and directives

Style and manner in which employer organizations get workand regulate the terms and conditions of employment affects

the industrial relations of the unit.

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Govt or state machinery regulates the relationship betweenworkers organizations and employers organizations.

It does it through :

- Statutes and legislations,- The judiciary- labor courts industrial tribunals

- An executive machinery- that lays down rules, proceduresand

gives awards and monitors them

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Dunlops model

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EXTERNAL FACTORS:

Militancy of unions- nationally or locally

Authority and effectiveness of the employers family

The extend to which bargaining is carried out at national,

local or plant level The effectiveness of any national or local procedure

agreements that may exist

Employment situation nationally or locally

Legal framework within which IR exists

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According to psychologists, the problems of IR areattributable to the differences in the perceptions of laborand management. Both parties tend to look at factorsinfluencing their relations i.e. wages, benefits, workingconditions etc. in different ways.

Dissatisfaction with pay, benefits, services, conditions of

work compel workers to turn aggressive and resort tostrike, gheraos etc. Employers adopt rigid postures and draw the shutters

down when they find regulatory framework to berestrictive, workers to be highly demanding and marketforces to be unmanageable.

Apart from economic issues, motives such as the need togain prestige, power, status, recognition also compelpeople to go in different directions, sacrificing the broaderorganizational interests