Presented by

Narinder Singh
Under the guidance of
Dr. Vaneeta Aggarwal
University Business School
Panjab University, Chandigarh
Approaches to Industrial Relations
 Psychological Approach
 Sociological Approach
 Human Relations Approach
 Gandhian Approach
 System Approach
 Human Resource Management Approach

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Approaches to Industrial Relations
(contd.)
 The Oxford Approach
 The ActionTheory Approach
 The Unitary Approach
 The Pluralist Approach
 The Marxist/RadicalApproach
 Weber’s Social Action Approach
 Socio-Ethical Approach

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Why So Many Approaches...?
The problems posed in the field of industrial relations
cannot be solved within the limits of a single
discipline, and hence it is bound to be inter-
disciplinary in approach.
Any problem in industrial relations has to be
approached on a multi-disciplinary basis, drawing
from the contributions of a number of disciplines.

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Psychological Approach
Problem of industrial relations lie in the perception
and attitude of the participants.

Study by Mason Haire on the behaviour of two

groups, namely, “Union leaders” and “Executives”.

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Psychological Approach (contd.)
Results of Mason Study:
a)The general impression about a person is radically
different when he is seen as a representative of
management from that of a person as a representative
of labour.

b)The management and labour see each other as less

dependable.

c) The management and labour see each other as

inadequate in thinking regarding emotional
characteristics and inter-personal relations.
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Sociological Approach
• This approach includes various sociological factors
like value system, customes, norms, symbols, attitude
and preception of both labour and management.
• As industrialisation gets momentum, a set of new
industrial-cum-social patterns emerges. These
influences shape the industrial relations.
• Now a days industrial relations are determined by
power.

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Human Relations Approach
Human are not inanimate or passive.

Human are very complex to understand i.e. to

manage.

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What Influences Human To Work
Style of leadership
 Autocratic style
 Democratic style

Motivation (satisfy the dissatisfied needs)

 Physiological needs (food, water, clothing, shelter)
 Safety needs (physical, finance and job security)

 Social needs (belonging, affection)

 Egoistic needs (self-esteem and esteem from others)

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Gandhian Approach
Truth, Non-violence, Non-possession, Non co-
operation (Satyagarah), trusteeship...

Workers’ right to strike.

Concept of equality

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Gandhian Approach (contd.)
 There is no room for conflict of interests between the
capitilist and the labourers.

But what IF conflicts occur...?

o Should they go for strikes/lockouts...!

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Gandhian Approach (contd.)
 Two things that Gandhiji expect from workers

i. Awakening
o Nurturing faith in their moral strength
o Awareness of its existence

ii. Unity

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Gandhian Approach (contd.)
Gandhiji advocates
Demands should be reasonable and through
collective action.
Avoide strikes as far as possible.
Avoide formation of unions in philanthropic
organisations.
Strikes should be the last resort only.
In case of organising a strike, workers should
remain peaceful and non-violent.

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System Approach (by John Dunlop)
 Focuses on
Participants in the process
Environmental forces
Output

And their inter-relationship.

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System Approach (contd.)
(Set of Ideas and Beliefs)

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System Approach (contd.)
Environmental Outputs
Participants
Forces
(i) Market or Budgetary
Restraints Union –
Management
Rules of the
(ii)Technology
Workplace
(iii)Distribution of Government
Power in Society

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System Approach:Participants
The main participants are
 Workers and their organisations

 Management and their representatives

 Government agencies

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System Approach:Environment
Three types of environments

 Technological characteristics of workplace

(Technological sub-system)

 The market or economic constraints

(Economic sub-system)

 The ‘locus’ and ‘balance of power’ existing in society

(Political sub-system)
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System Approach: Output
Output is the result of interaction of the parties/actors
of the system which is manifested in the network of
rules, country’s labour policy and labour agreements
etc. that facilitate a fair deal to workers.

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Human Resource Management
Approach
The term, human resource management (HRM) has
become increasingly used in the literature of
personnel/industrial relations. The term has been
applied to a diverse range of management strategies
and, indeed, sometimes used simply as a more
modern, and therefore more acceptable, term for
personnel or industrial relations management.

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 HRM Approach (Contd.)
Some of the components of HRM are
(i) human resource organisation
(ii) human resource planning
(iii) human resource systems
(iv) human resource development
(v) human resource relationships
(vi) human resource utilisation
(vii) human resource accounting
(viii) human resource audit.
This approach emphasises individualism and the direct
relationship between management and its employees. Quite
clearly, therefore, it questions the collective regulation basis of
traditional industrial relations. 20/20
QUERRIES ????
Presented By
Puneet Aggarwal
Under Guidence
Dr. Vaneeta Aggarwal
 Labor management problems arise when gigantic
industrial empires of Financial tycoons came into
existence during early nineteen century.
 This problem become major study only when large
aggregations of people came to work under one roof.
 There are various evolutionary phases to understand
the issues and problems associated with industrial
relation.
Agrarian Economy Stage

 Handicrafts stage

 Cottage or Putting-out Stage

 factory or the Industrial Capitalism Stage

It developed during the Middle Ages and brought
about a change in the views on property. There
arose a class of propertied individuals along with
a class of propertyless worker.
Under this system employees were treated as
slaves. Employee-Employer relationship was that
of master- servant type.
Government did not any control over
employment relationship.
This system developed because of the growth of
towns and cities, increase in trade and commerce.
The workers owned factors of production, worked
with there own tools and with the help of family
members.
They sold goods directly in the market.
Sometimes the master craftman also underlook,to
teach his craft to some young men. These artisans
began their careers as apperentics.
With the development of economic system, and that
of the steam and power, some individuals became
employees in the new industrial units.

Master craftmen buy raw material and than supply it

and also provide finance to the craftmen .

They were paid on the basis of piece rate system.

Kamara-smith, Taksana-carpenter, Dhanuskara-bow
maker, Vidalkari-basket maker.
In addition to this some other are Napita-barbar,
Dhivara-fisherman, Grapha-doorkeeper, Anuksattr-
servant, Payu- guard.
The caste system had great influence on the
development and progress of the various industries
and occupations.
A Brahmin earn his livelihood by teaching, Kshatriya
is fighting class, The Vaishya specialized in cultivation
and Shudra had no right , his main occupation being
service.
“In Mahabharat it is
mentioned that a powerful
person exploits the weak one,
just as big fishes make a meal
of small one.”
In India modern Industries were set in middle
nineteens.
The trading community was very small. Isolated
entrepreneurs did launch industries like cotton,
or iron, steel but these could not stand
competition and pressure of British capitalism.
The workers were mostlly employed under
subversive conditions.
The passing of the Factories act in 1881
awakened workers toward concerted approach.
World war1 created a period of boom for employees.
This economic distress brought workers together
and a organised working class movement began in
the country.
The Trade Union Act(1926) and The Trade Dispute
Act(1917) provide significant protection to workers.
During Second world war employers made
enormous profits. Workers demanded share out of it.
They were given but not in proportion as increase in
price.
Year following the war was most disturbed years from
the point of view of industrial relations.
There was a considerable increase in the number of
trade union and their membership.
In 1946, the Industrial Employment Act was passed to
regulate terms and condition of service and In 1947,
the INTUC was formed.
 After Independence, in the interest of the
national economy, it was considered necessary
to stop strikes.
The Minimum Wages Act, the Factories Act, and
the Employees’ State Insurance Act were
enacted in 1948.
The right of an individual worker came to be
better safeguarded when the Industrial Dispute
Act was amended in 1947.
In 1969 a report of the National Commission on
Labour, a growing concern was shown on industrial
relations.
During emergency(1975 and 1976) the industrial
relations was quite peaceful.
During 1991 the countrys industrial relations are in
doldrum.
The Indian Industrial Relations System is slowely
changing over time.
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