INDUSTRIAL

RELATIONS-
INTRODUCTION
 Industry

• 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.
 Employer

• An employer can be defined from different

perspectives as:-
• A person or business that pays a wage or
fixed payment to other person(s) in exchange
for the services of such persons.
• A person who directly engages a
worker/employee in employment.
 Employee

• Employee is a person who is hired by

another person or business for a wage or
fixed payment in exchange for personal
services and who does not provide the
services as part of an independent business.
• An employee is any individual employed by
an employer.
 Labor market

The market in which workers compete

for jobs and employers compete for
workers.
 Industrial Relation System

An industrial relations system consists of

the whole gamut of relationships between
employees and employees and employers
which are managed by the means of
conflict and cooperation.
 INDUSTRIAL RELATIONS
• The relation between an employee and an employer in
the course of running of an industry and may project
itself to spheres which may transgress to the areas of
quality control, marketing, price fixation and disposition
of profits among others.

• Industrial Relations or Labour relations, is an expression

used not only for relationships between employers and
Trade Unions, but also for those involving Government
with the aim of defining policies, facing labour problems.
According to the ILO, “industrial relations
deal with either the relationships between
the state and the employers and the
workers’ organisation or the relation
between the occupational organisations
themselves”.
EMPLOYEES TRADE
UNIONS

EMPLOYER INDUSTRIAL EMPLOYER’S

ASSOCIATIO
RELATIONS
N

GOVERNMENT COURTS &

TRIBUNALS
 CHARACTERISITCS
1. Employer-employee interactions.
2. Web of rules.
3. Multidimensional.
4. Dynamic and changing.
5. Spirit of compromise and accommodation.
6. Government’s role.
7. Wide coverage.
8. Interactive and consultative in nature.
 Dimension Industrial HRM
Relations
PsychologicalCompliance Commitment
Contract
Behavioral Norms, Value &
References custom, Mission
practice
Relations Low Trust, High trust,
Collective individual
Organization Formal Roles, Flexible Roles,
Design Division of Teamwork,
Labour, Flat Structure
Hierarchy
Objectives of Industrial Relations
• To enhance the economic status of the workers.

• To regulate the production by minimising industrial conflicts

through state controls.

• To socialise industries by making government an employer.

• To provide an opportunity to the workers to have a say in

management & decision making.

• To encourage & develop trade unions in order to improve

the workers’ collective strength.

• To avoid indusial conflicts & their consequences.

 Approaches to Industrial
Relations
•Psychological approach: The problems of industrial relations are
attributable to the differences in the perceptions of labour and
management.

• Sociological approach: A number of sociological factors such as

the value system, customs, and traditions-affect the relations
between labour and management.
•Giri approach: Collective Bargaining and Joint Negotiations be
used to settle disputes between labour and management.
•Outside interference must be avoided

• Gandhian approach: Gandhiji accepted the worker’s right to

strike
• This right be exercised in just cause and in a peaceful, non-
violent fashion.
• The trusteeship theory -wealth belongs to society and not to the
owners of an enterprise.
• Human relations approach: Human behavior is
influenced by a variety of social and psychological
factors, not just earnings.
• To reduce friction and conflict in the workplace,
managers need to possess effective social skills.
• Every attempt must be made to integrate the individual
objectives with overall organizational objectives
 HRD Approach to Industrial
Relations
Human Resource Development involves
ways to better adjust the individual to
his job & environment.
the deepest involvement of an employee
in various aspects of his work.
the greatest concern for enhancing the
capabilities of the individuals.
 Essential Conditions for Sound
Industrial Relations
• Existence of strong, well organized and democratic employees’
unions.

• Existence of sound and organized employers’ unions.

• Spirit of collective bargaining and willingness to resort to

voluntary negotiations.

• Maintenance of industrial peace.