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Chapter 1 Page 1 - 39 PDF
Chapter 1 Page 1 - 39 PDF
century and term has been used differently in the work place situations
at different times over the years. The emergence of the concept of the
relations mean the relationships that exist within the industry between
the employer and his workmen. Therefore the term industrial relations
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D., 1987) which is derived directly or indirectly from union employer
by a union.
employers.
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formed to promote their respective interests, and the relations between
Industrial relations deal with the relationship that exists between the
workers, the trade union and the management are the basic parties to
it, and then it finds its most important application in case of industrial
disputes.
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workers, where as labor relations deals with unionized workers.
unionized workforce.
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business enterprise is an open system and it continuously interacts
with its environment. Businesses take inputs like raw material, capital,
labor, energy, etc. from the environment, and transform them into
goods & services, and then send them back into the environment.
impact almost all companies in an economy. These factors are the six
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economics, industrial sociology, labor and social history, human
from norms and power structures on the shop floor, to employee voice
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industrial relations. The pluralist groupthinks that the employment
standards, and other employment and labor laws and also public
policies. At another side, the Marxist inspired critical group thinks that
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organizational behavior, and on the other by postmodernism. In policy
therefore going down, and scholars are leaving the field for other
behavior too. But the importance of work is stronger than ever, and the
different institutions has a major role in this regards and make a huge
and focus should be on innovation and upgrading their current skill set.
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2. Growing urbanization - 30% stay in urban areas in 2011 as against
11% in 1901)
2011.
the workforce.
Its the need of the hour to have plan in line with the above. A
disconnect of the above causing the industrial unrest over the country,
down especially in the post 90s but MDL and workers involved in ID
private sector recently. There has been sharp decline in MDL as well
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IR unrest is evident with so many agitations and demonstrations in
trend.
Industrial relations are impacted with so many other factors besides the
inside the workplace and these factors are beyond the immediate
both etc. the structure of labour force, demand for and supply of
workforce.
etc.
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Labour is embodied in human beings and its not a commodity. This is
the emphasis on the theoretical and policy foundation for the field of
individuals.
between the state and the employers and the workers organizations or
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According to R. A. Lester, industrial relations involve attempts to have
and cooperation.
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management brings workers into contact with the organization in such
a way that the objectives of both the groups are achieved. HR implies
a concern for the people but the effective manager never loses sight of
public policies.
interpret such events as workplace conflict, the role of unions and job
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1.5 Unitary Perspective In Industrial Relations
where none would otherwise exist. Also they have assumptions about
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Pluralist perspective
loyalties and with their own set of objectives and leaders. Management
and trade unions are the two predominant sub-groups in the pluralist
perspective.
workplace role of trade unions as it is not the cause of conflict but they
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Marxist/Radical perspective
reflects a wider class conflict between capital and labor which reflects
seeks to reduce costs, workers seek fairer price for labor and this will
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1.6 Theories of Industrial Relations
The formation key inputs of this theory put forth by Mayo, Maslow,
hierarchy of needs.
Systems Theory
The formation key inputs of this theory given by Dunlop (Martin, 1990).
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includes employers, employees, their representatives, government
pace (Aram, 1981) and conduct of work. The implications of this theory
The key inputs of this theory are given by Kochan, Katz and McKersie.
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frameworks (Strauss, 1984), retreating government intervention, pro-
The key inputs are given by Taylor. It has unitarist frame of reference.
This theory focuses on use and control of labor. It serves the reference
Regulation Theory
The key inputs provided by Stigler and Friedland It has pluralist frame
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Labour Market Theory
relevance right from the 1769, when James Watt fought for the patent
In the last two centuries, there have been three inter related revolutions
which marked the evolution of industrial relations into its present form.
Industrial Revolution
Democratic Revolution
Capitalist Revolution
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Pre industrial revolution era
This period refers to the prior to industrial revolution in the world. This
was the time while there was no formal way of establish relationship
There were no defined work hours rather working hours were long.
missing.
and the craftsman basis. There was more focus on personal rather
than professional.
The work place, work environment and conditions were improper did
Industrial revolution
and social life. It began in the UK and then soon spread to France,
Germany, and the USA. This period was extensively marked by the
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It was driven by a series of connected events, which brought about
efficiency.
labor. Before, the supply side was governed by some groups and
some countries and towards its end, 80% of the production was
worlds population.
Democratic revolution
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governance of the countries and focused on labour. These Countries
There was an increase in social concerns for human rights. During the
was banned and considered a sin, changed and took to the new norms
e.g. In Germany, Trade Union was not accepted before the democratic
revolution and the same goes for USA, where trade unions were
Capitalist Revolution
There were certain changes in the society after the capitalist revolution.
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Capitalist revolution in industrial relation unequal authorities
This Capitalism caused a divide in society between rich and poor and
negative flavor to the social structure and thus arose certain conflicts.
both positive and negative impacts, some of the key features are given
below:
Conditions
oriented bodies
faced depression. This period caused a shift from crafts union towards
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government regulations which redefined industrial relations as till this
Some of the features of this era were that the economists studied new
sectors. This was a boon for workers to get the wages according to
performance etc.
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Collective bargaining system between employer and employee
evolved.
After the Second World War, there has been significant reforms
happened across the globe. The country has taken initiatives in these
reforms.
Context:
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Post-independence era.
In India, following are the key issues about industrial relations at that
time:
Workers used to have faced hired and fired policy. Employer used
to fire workers at any stage of work for any reason. Worker was not
The wages were very poor according to the nature of work and
time of work.
Till the end of First World War trade unions movement had not
emerged in India.
There were hardly any laws were present to protect the rights of
lockouts.
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Numerous strikes and disturbances happened the great
Industrial Courts (Act) 1919. But it did not provide for any standing
This was replaced by BIR Act 1946, which was amended in 1948,
1949, 1953 and 1956 and so on. Soon after the Second World War,
India faced many problems like rise in cost of living, high population,
but also to make these awards binding and legally enforceable on the
1947 was held in India where an appeal was made to labor and
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management India in form of Industrial Truce Resolution to maintain
and Government.
legislations.
focus on labour laws enactment. These labor laws cover many issues
and regulate their employment many acts came into existence: Some
era were:
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Payment of Bonus Act 1965
Despite all the above legal enactments and focus IR reforms through
took place during this phase. And there was industrial unrest across
the profits. All these were not only putting pressure on workers as well
in the Indian Industry. It opened the door for MNC companies in India
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which attracted foreign investment in the country. This has increased
companies and their work culture and practices. The Liberalization had
divide among the blue collar and contract manpower. Due to increased
automation employment growth has also slowed down in 1991 from 1.6
Employment insecurity among the labour has increased. And all this
Baxter, Maruti, Toyota, Baja, Coca Cola, Nokia, Shriram Piston and
Hyundai etc.
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1.8 Need & Importance of Industrial Relations
Productive industrial relations are always the key for the progress and
more motivated and take increased ownership for their jobs on the
floor. They take full ownership of the jobs which reflects in timely
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motivations to secure adequate satisfaction or expression which
production.
work with great enthusiasm with the feeling in mind that the interest
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spirit of true democracy. They should think themselves as partners
industrial relations.
man, material and machines are reduced to the minimum and thus
relations are basis of higher production with minimum cost and higher
things for the welfare of the workers and to promote the morale of the
peace.
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Strong and Stable Union
union would have it easy to carry forward company plans and get
then implemented from all the workers. The employees ignore weak
union as they think that it hardly represents the workers and can not
Mutual trust
parties.
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Employees Participation in Management
when they listen to each other and resolve issues mutually. The
team.
getting employees know about company plans etc but it also helps
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must recognize the right of collective bargaining of the trade unions.
mutual give and take rather than take or leave. The management
resolutions.
Implementation of Agreements
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their representatives if they are to be implemented effectively. It
Role of Management
(Jensen, 1983), the employees, the consumers and the nation. The
Role of Government
settling the industrial disputes. It should help make law for the
the workers are unable to settle their disputes. This will restore
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1.10 Summary
along with the history and Genesis of Industrial relations. The need and
also discussed very well along with the Essentials for Good Industrial
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