Corporate Governance Practice in SBI and

WIPRO
It establishes industrial democracy: Industrial relations means
settling employees problems through collective bargaining,
mutual cooperation and mutual agreement amongst the parties
i.e., management and employees unions. This helps in
establishing industrial democracy in the organization which
motivates them to contribute their best to the growth and
prosperity of the organization.
It ensures optimum use of resources: Good and harmonious
industrial relations create a sense of belongingness and groupcohesiveness among workers, and also a congenial environment
resulting in less industrial unrest, grievances and disputes. This
will ensure optimum use of resources, both human and materials,
eliminating all types of wastage.
It discourages unfair practices on the part of both management
and unions: Industrial relations involve setting up machinery to
solve problems confronted by management and employees
through mutual agreement to which both these parties are bound.
This results in banning of the unfair practices being used by
employers or trade unions.