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The preparation of this report is a sound example of teamwork. The experience is a valuable one because not only did the report increase our understanding and knowledge on the assigned topic, i.e. ‘Causes of poor IR in BD and pre-requisites for improving employee relation in Organization’. It also taught us important lessons of how to incorporate out theoretical knowledge to enhance the understanding of practical implications. In addition, it also gave us a thorough opportunity to learn from others; despite conflicting ideas, the teams managed to join efforts and reach unanimous decisions at the end. It re-defined our skills of working with others to reach a final goal, and improved our communication as well as tolerance levels.
However, this would not have been possible had we not been given the opportunity to present this report. Therefore, we would like to express the deepest appreciation to our course instructor, Tamima Hossain, Lecturer, BBA Program, and M.H. School of Business, who has been a continuous source of guidance throughout the report and has always been there to answer our quarries.
Causes of poor IR in BD & pre-requisites for improving employee relation in Organization
and employers do not believe in industrial relation. not backed by spontaneous workers support. uses the bad technique of managing the leaders rather than encouraging trade union for industrial relation. Industrial relation situation in Bangladesh is not encouraging. Here. But for the greater interest of the nation organizations should emphasis on sound industrial relation that can expedite national development. trade unions are not well organized. Industrial Relation is deals with the manpower of the enterprise and the management which is concerned with – whether machine operator.how to improve Industrial Relation in organization. Many of the entrepreneurs. powerful. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . and the members are not efficient enough to raise voice for the workers. highly politicalized. Healthy industrial relation is the only way for greater productivity. industrial situation is not giving as enough hope towards the above. skilled worker or manager.Page 2 of 18 Executive Summary This studies on Poor industrial relation in Bangladesh and its cure. Rapid and sustainable industrial development is the mean for the national prosperity. rather they like treating workers as the most neglected component of production. Here. and greater productivity can create more and more investment for industrialization.
which directly or indirectly refers to trade union and management relationship. monotony. their organization. industrial relation comprises of all the issues of industrial life allied to wages. employee relations. According to V. Agnihotri. trade unionism.e. and relationship among the employees in the course of running of an industry or organization. collective bargaining etc. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . organizational relation and work life relations in the study of HRM. industrial hazards. industrial relation is industrial workers’ relation with their management. Thus. conditions of work and work place. fatigue. Dunlop explained industrial relation as a sum total of relationship between workers.Page 3 of 18 Introduction In the term Industrial Relation (IR). demographic. The concept industrial relation has been addressed as different terms i. social. economic. Industrial relation is treated as a measuring instrument for industrial productivity. In view of the definitions. labor relations. absenteeism. psychological. industrial relation is a set of functional interdependence involving historical. industrial relations mean relationship between management and employees. political and legal variables. In the opinion of Arun Monappa. productivity. managers and government or law. technological occupational. Industry means any productive work or more specifically production process and Relation is human relation in the production process. labor turnover. Henry Richardson defines industrial relation as an art of living together for productivity.
To highlight objective of IR and its impact. 3. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . We also tried to know the cures how we can improve IR in organization. This objective comprises three main goals: 1. Knowing about functional requirements of a successful industrial relations program is also an objective in this report. which may not be possible. Limitations of the study There were some obstacles. This report will reveal causes of poor IR and how it can overcome. The limitations are: Lack of adequate information due to confidentiality. 2. which were hard to meet up with. Analyze the causes of poor IR. That is why we tried to find out the present IR situation in Bangladesh and what the reasons are behind it. To provide pre-requisites how employee relation can improve. Direct observation requires extensive time involvement. Lack of documented and concrete secondary materials.Page 4 of 18 Objective of this Report The main objective of the report is comparative analysis and to examine some data and trends causes of poor Industrial Relation in Bangladesh & pre-requisites for improving employee relation in Organization.
To include graphical content we use line and Bar chart. journals. we use MS Ward 2007 and Excel 2007 Worksheet to illustrate the numeric data. reports. particularly in the case of collective bargaining. Besides presenting data.Page 5 of 18 Methodology This report relies principally on the contributions of two sources: Primary Sources Secondary Sources The sources which have been reviewed are: books. both qualitative and quantitative approaches have been adopted. Collection of data and statistics. We have also used internet sources to collect information on industrial relations. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . the study analyses the historical evolution of industrial relations system and the legal instruments used therein. and data from various unofficial sources. As a methodology. was somewhat impeded by the unavailability of official statistics. In preparing this report.
employees and their unions and the government. According to International Labor Organization. Features of Industrial Relations • Industrial relations are outcomes of employment relationships in an industrial enterprise. • Industrial relations system creates rules and regulations to maintain harmonious relations. the term Industrial Relations includes the relationship between the various unions. agreements. However. These relations cannot exist without the two parties namely employers and employees. • Industrial relations are a dynamic and developing concept. In a broad sense. not a static one.Page 6 of 18 Industrial Relations Industrial relation means the relationship between employers and employees in course of employment in industrial organizations. • Several parties are involved in the Industrial relations system. rules. They undergo changes with changing structure and scenario of the industry as and when change occurs. the concept of Industrial Relations has a broader meaning. • Industrial relations include both individual relations and collective relationships. charters etc. These three parties interact within economic and social environment to shape the Industrial relations structure. Relations of all those associated in an industry may be called Industrial Relations. • The government intervenes to shape the industrial relations through laws. The main parties are employers and their associations. and the relationship among the occupational organizations themselves. between the state and the unions as well as those between the various employers and the government. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . terms. Industrial relations comprise relationships between the state on one hand and the employer’s and employee’s organization on the other.
To work in the direction of establishing and maintaining industrial democracy. Smooth running of industries is important for manufacturers. Industrial peace helps in promoting co-operation and increasing production.). food grains etc. To ensure workers’ participation in decision-making. • To make positive contributions for the economic development of the country. social and economic changes. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes. To develop employees to adapt themselves for technological. To increase the morale and discipline of workers. This means continuous employment for all involved right from managers to workers. grievances and lockouts are some of the reflections of Industrial unrest. Good industrial relations bring industrial peace which in turn tends to increase production. There is uninterrupted flow of income for all. To avoid industrial conflicts and to maintain harmonious relations. To establish a proper channel of communication between workers and management. Strikes.Page 7 of 18 Objectives of Industrial Relations • • • • • • • • • • To bring better understanding and cooperation between employers and workers. To safeguard the interest of workers and the management. Uninterrupted Production: The most important benefit of industrial benefits is that it ensures continuity of production. To ensure better working conditions. living conditions and reasonable wages. 2. To ensure constructive contribution of trade unions. if their products are perishable goods and to consumers if the goods are for mass consumption (essential commodities. Importance of Industrial Relations 1. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization .
5. High morale: Good industrial relations improve the morale of the employees. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. workers must recognize employer’s authority. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . It will naturally have impact on production because they recognize the interest of each other. 3. material and machines are reduced to the minimum and thus national interest is protected 7. It will help increase production. New Programs: New programs for workers development are introduced in an atmosphere of peace such as training facilities. The industrial peace lies ultimately in a transformed outlook on the part of both. Mental Revolution: The main object of industrial relation is a complete mental revolution of workers and employees. Every worker feels that he is a co-owner of the gains of industry. It naturally affects production because mighty co-operative efforts alone can produce great results. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. Wastages of man. 4. On the other hand. Contributes to economic growth and development. Reduced Wastage: Good industrial relations are maintained on the basis of cooperation and recognition of each other. In other words. 6. It increases the efficiency of workers resulting in higher and better production at lower costs.Page 8 of 18 Thus good Industrial relations help in establishing Industrial democracy. discipline and a conducive workplace environment. labor welfare facilities etc. complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied.
Page 9 of 18 Industrial Relations in Bangladesh Scope of industrial relations involves all the variables of industrial life which is in turn having direct bearing on total social life. Rapid and sustainable industrial development is the mean for the national prosperity.. improve public sector efficiency. Many of the entrepreneurs. and the members are not efficient enough to raise voice for the workers. globalization (e. Here. powerful. The main objective of industrial relation is to maintain harmoniums production situation.g. In this regard. create more coherent and coordinated strategies and. Given the importance of industrial relations to economic development. generally. Ministries of Labor often have a narrow and reactive role. or among the employers. and employers do not believe in industrial relation. Bangladesh is not an industrialized country nor does it have huge natural resources as yet. There is also a need for governments to include trade unions in any public sector reform process and take account of their major concerns. Causes of poor Industrial Relations in Bangladesh Government action in support of globalization has to rely on policy planning and delivery services provided by the public sector. uses the bad technique of managing the leaders rather than encouraging trade union for industrial relation. rather they like treating workers as the most neglected component of production. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . and the problem of enterprises having to rely on inefficient public enterprises for provision of basic services). demands from MNC’s and domestic firms for less “red tape”. highly politicalized. trade unions are not well organized. and greater productivity can create more and more investment for industrialization. industrial situation is not giving as enough hope towards the above. The G-8 countries have high industrialization. avoiding industrial unrest for smooth productivity. If there is no industrial relation or no relationship between employers and worker. Healthy industrial relation is the only way for greater productivity. This sector has to be restructured to meet the demands of. and high industrialization was possible only on excellent industrial relation situation. they should be working more actively with planning and finance Ministries to generate development options. not backed by spontaneous workers support. or overcome problems arising from. Here. People could be the only resource if they could be turned into human resources. production or productivity will not come into reality.
unsatisfactory maintenance etc. governments should continue to promote bipartite and tripartite institutions and processes to establish appropriate labor policy and standards. but (particularly where major business and investment interests – including those of MNC’s – are involved) it should establish a sound basis for investment and economic and employment growth. absence of promotion opportunities. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . Other causes for Industrial conflicts are inadequate infrastructure.Page 10 of 18 Finally. Defective trade unions system prevailing in the country has been one of the most responsible causes for Industrial disputes in the country. Key Aspects of poor Industrial Relations in Bangladesh Economic causes: Often poor wages and poor working conditions are the main causes for unhealthy relations between management and labor. Psychological causes: Lack of job security. the following are briefly the causes of poor industrial relations: 1. faulty incentive schemes are other economic causes. worn-out plant and machinery. Unauthorised deductions from wages. inter-union rivalry weaken the trade unions. poor layout. unfair practices. poor interpersonal relations are the psychological reasons for unsatisfactory employer-employee relations. Dissatisfaction with job and personal life culminates into Industrial conflicts. Mental inertia on the part of management and labor. Social causes: Uninteresting nature of work is the main social cause of poor Industrial relations. Inputs from all relevant parties should be considered. Organizational causes: Faulty communications system. Political causes: Multiple unions. Not only will this limit potential conflict in the future. nonrecognition of trade unions and labor laws are also some other causes of poor relations in industry. lack of fringe benefits. However. non-recognition of merit and performance.
Inadequate fixation of wage or wage structure. Retrenchment. Dispute on sharing the gains of productivity. Indiscipline. Lack of human relations skill on the part of supervisors and other managers. strikes by others. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . For a hopeful industrial revolution there is urgent need to fulfill some prerequisites like: • • • Establishing excellent relationship. 11. such as rising prices. An intolerant attitude of contempt of contempt towards the workers on the part of management. mutual trust and honor between employers and workers at highest level Avoidance of industrial unrest. 12. 8. But for the greater interest of the nation organizations should emphasis on sound industrial relation that can expedite national development. 7. Desire on the part of the workers for higher bonus or DA and the corresponding desire of the employers to give as little as possible. General economic and political environment. Unfair labor practices. Inter-union rivalries. 14. Inappropriate introduction of automation without providing the right climate.Page 11 of 18 2. Unhealthy working conditions. 4. In short. 10. 9. 6. establishment and maintaining harmonious labor management relationship Increasing employees’ efficiency. like victimization and undue dismissal. 5. dismissals and lock-outs on the part of management and strikes on the part of the workers. Unduly heavy workloads. and 15. Inadequate welfare facilities. 13. 3. and general indiscipline having their effect on the employees’ attitudes. industrial relation situation in Bangladesh is not encouraging.
by providing good working conditions. workers and government are thinking on industrial development through high quality of industrial relations. safe work place. by fixing reasonable wages. Scope of improve Industrial Relations The scope of industrial relations includes all aspects of relationships such as bringing cordial and healthy labor management relations. by maintaining healthy trade unions. by providing other social security measures. The industrial democracy could be achieved – • by allowing workers to take part in management. and Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . The cordial and healthy labor management relations could be brought in• • • • • • by safeguarding the interest of the workers. which in term will surely increase productivity. By collective bargaining. Boards of Conciliation. Now a day.Page 12 of 18 • • • Ensuring highest productivity through concerted efforts of employers and employees Providing possible better wages. the employers. The industrial peace could be attained – • • by setting industrial disputes through mutual understanding and agreement. and sufficient welfare for workers. and Labor Courts etc. good work environment. By evolving various legal measure and setting up various machineries such as Works Committee. Establishing social security system and safety net for the employees. creating industrial peace and developing industrial democracy.
Pre-requisites Organization to improve Employee Relations in an Sound personnel policies: Policies and procedures concerning the compensation. They must ensure reasonable wages. satisfactory working conditions. Grievance procedure: A well-established and properly administered system committed to the timely and satisfactory redressed of employee’s grievances can be very helpful in improving Industrial relations. etc. Management should have a genuine concern for the welfare and betterment of the working class. transfer and promotion. Employee welfare: Employers should recognize the need for the welfare of workers. A suggestion scheme will help to satisfy the creative urge of the workers. Participative management: Employees should associate workers and unions in the formulation and implementation of HR policies and practices. and other necessary facilities for labor. of employees should be fair and transparent. Constructive attitude: Both management and trade unions should adopt positive attitude towards each other. Responsible unions: A strong trade union is an asset to the employer. Creating a proper communication channel to avoid grievances and misunderstandings among employees Education and training imparted to the employees Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . The employer should accept workers as equal partners in a joint endeavor for good employee relations.Page 13 of 18 • By recognition of human rights. Trade unions should adopt a responsible rather than political approach to employee relations. Management must recognize unions as the spokesmen of the workers’ grievances and as custodians of their interests. All policies and rules relating to employee relations should be fair and transparent to everybody in the enterprise and to the union leaders.
Since Industrial Relations is a function of three variables – management. young graduates will resist authority and would challenge prevailing management prerogatives. According to Victor Fuchs. and Monitoring the resulting developments. create ideas. the large corporation is likely to be over-shadowed by the hospital. Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . where people share success and failure. Granting the freedom to act within these boundaries. Following the concept of ‘corporate citizenship’. Tomorrow’s management control centers. “In future. employees would consider themselves to be partners in management and expect their talents to be utilized to the fullest.Page 14 of 18 Planning to Developed Industrial Relations: Tasks Ahead In future organization systems. interact and work for development and realization of the individual’s potential as human being. For achieving the objectives of improved management – trade union the following line fo action is suggested: • A realistic attitude of managers towards employees and vice versa for humanizing industrial relations. they would need to balance humanistic values with the flow of advancing science and technology. trade unions and workers. advanced OR models will aid future managers in the use of resources. research institutes. government offices and professional organizations that are the hallmarks of a service economy’. a workable approach towards planning for healthy labor-management relations can be developed by: • • • Defining the acceptable boundaries of employer/ employee action. • Proper organization climate and extension of area of Industrial Relations. With increased self-esteem and self-image. university. the ‘responsible corporation’ has to develop as a social institution.
but on the contrary. An objective follow-up pattern for industrial relations system. It is becoming increasingly obvious that industrial peace amongst all participants in the industrial relations systems requires truth as foundation. justice as its rule. In fact both managements and workers need a change in their philosophy and attitudes towards each other. sanctity of ballot. Respect for public opinion and democratic values An integrated industrial relations policy incorporating rational wage policy. The maintenance of an efficient system of communication. • • • • • A comprehensive system of rules and discipline. love as its driving force. Whatever. In all fairness. both management and workers should not look upon themselves as two separate and distinct segments of an organization. Functional Requirements of a Successful Industrial Relations Program The basic requirements on which a successful industrial relations program is based are: a) Top Management Support: .Since industrial relations is a functional staff service. industry and national levels. and liberty as its atmosphere. labor laws may lie down. it must necessarily derive its authority from the line organization. realize that both are partners in an enterprise working for the success of the organization for their mutual benefit and interest. This is ensured by Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . it is the approach of the management and union which matters and unless both are enlightened. collective bargaining and tripartite negotiations. trade union and democratic rights.Page 15 of 18 • Institutionalism of industrial relations and effective forums for interaction between management and trade unions at plant. industrial harmony is not possible.
chairman or vice president of an organization. job supervisors should be trained thoroughly. A follow up of turnover.In the field to assist in the implementation of the policies of an organization. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. The procedures and practices of an industrial relations department are the “tool of management” which enables a supervisor to keep ahead of his job that of the time-keeper. before any emergency arises. moreover. as well as in formal social sciences research.These constitute the business philosophy of an organization and guide it in arriving at its human relations decisions. Policies can be successful only when they are followed at all the level of an enterprise. d) Detailed Supervisory Training :. The purpose of such policies is to decide. A system of procedures is essential if intention is to be properly translated into action. Hints of problem areas may be found in exit interviews. so that existing practices may be properly evaluated and a check may be exercised on certain undesirable tendencies. departmental morale.To ensure the organizational policies and practices are properly implemented and carried into effect by the industrial relations staff. An economy organized for planned production and distribution. c) Adequate Practices should be developed by professionals: . b) Sound Personnel Policies: . rate adjuster. should they manifest themselves. wage administration. It also results in increased efficiency of workers. so that they may convey to the employees the significance of those policies and practices. absenteeism. employee grievances and suggestion. be trained in leadership and in communications. what shall be done about the large number of problems which crop up every day during the working of an organization. in trade union demands and in management meetings. aiming at the Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . e) Follow-up of Results: . from top to bottom. grievance reporter and merit rater. should be supplemented by continuous research to ensure that the policies that have been pursued are best fitted to company needs and employee satisfaction. Conclusion It is evident that good industrial relation is the basis of higher production with minimum cost and higher profits.Page 16 of 18 providing that the industrial relations director should report to a top line authority to the president. They should. etc.A constant review of an industrial relations program is essential.
Nasima Khatun. If the twin objectives of rapid national development and increased social justice are to be achieved. A Handbook on HR Solution (2009). A Handbook on Industrial Relation Khan Sarfaraz Ali and Dr.Page 17 of 18 realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. (ISBN: 978984-33-0505-3) Causes of poor IR in BD & pre-requisites for improving employee relation in Organization . there must be harmonious relationship between management and labor. Reference Tamima Hossain.
scribd.yourhrworld.com/doc/35840151/Main-Trade-Unions-and-Industrial-Relations-inBangladesh Causes of poor IR in BD & pre-requisites for improving employee relation in Organization .com/uploads/433_Industrial_Relations.com/2008/12/29/causes-of-poor-industrial-relations-inbangladesh/ http://www.com/industrial-relations/4268-causes-poor-ir-its-outcomes.scribd.wordpress.navimumbaicollege. Current Status and Evolution of Industrial Relations System in Bangladesh.Page 18 of 18 Dr. Abdullah Al Faruque.html http://www. International Labour Organization www.com/doc/33834904/Industrial-Relations-in-Bangladesh http://kmmhasan.doc http://www.
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