Q. What do you mean by Industrial Relation?

Q1. Explain the Concept and Scope of Industrial Relation.

Concept of IR: Basically, IR sprouts out of employment relation. Hence, it is broader in meaning
and wider in scope. IR is dynamic and developing socio-economic process. As such, there are as
many as definitions of IR as the authors on the subject. Some important definitions of IR are
produced here.
According to Dale Yoder’, IR is a designation of a whole field of relationship that exists because of
the necessary collaboration of men and women in the employment processes of Industry”.
Armstrong has defined IR as “IR is concerned with the systems and procedures used by unions and
employers to determine the reward for effort and other conditions of employment, to protect the
interests of the employed and their employers and to regulate the ways in which employers treat
their employees”
Definition: The Industrial Relations or IR encompasses the relationship between the management
and workmen and the role of a regulatory body to resolve any industrial dispute.
As the name implies, Industry Relations comprises of two words, Industry, and Relations. Where
industry covers the production activity in which the group of workmen is engaged in, while the
relations show the relationship between the management and the workers within the industry. IR
plays a significant role in today’s working scenario where the harmonious relationship between the
employers and employees is needed to have an uninterrupted production. The Industrial Relations
mainly cover the following:
Regulatory body to resolve industrial disputes, Collective Bargaining.
The role of management, unions and government, Labor Legislation
Worker’s Grievance Redressal system.,Disciplinary policy and practice.
Industrial Relations Training., Importance of Industrial Relations, Increased Productivity: ,Reduced
Industrial Disputes: ,Increased Morale: , Minimization of Wastage:
Thus, an effective IR is required to ensure higher production at less cost and increased profits. It
covers the system, rules, and procedures to protect the interest of the workmen and the employers
and to regulate the behavior of the employer i.e. the way he treats his workmen.
Scope of IR:
Based on above definitions of IR, the scope of IR can easily been delineated as follows:
1. Labour relations, i.e., relations between labour union and management.
2. Employer-employee relations i.e. relations between management and employees.
3. The role of various parties’ viz., employers, employees, and state in maintaining industrial
relations.
4. The mechanism of handling conflicts between employers and employees, in case conflicts arise.
The main aspects of industrial relations can be identified as follows:
1. Promotion and development of healthy labour — management relations.
2. Maintenance of industrial peace and avoidance of industrial strife.
3. Development and growth of industrial democracy.

Q2. Define the term Industrial Conflict/Disputes?

industrial conflict A term which refers to all expressions of dissatisfaction within the employment
relationship, especially those pertaining to the employment contract, and the effort bargain. The
many different kinds of industrial conflict may be divided into two broad classes—informal and
formal.
Informal industrial conflict is so labelled because it is not based on any systematic organization,
results directly from a sense of grievance, and supposedly is wholly expressive in nature. Many
forms of industrial sabotage which appear irrational would constitute industrial conflict in this
sense, as would purely individualized and even unconscious forms of protest, including
absenteeism, frequent job-changing, negligence, and even accidents at work. Industrial
sociologists have also regarded spontaneous walk-outs and strikes as examples of informal
industrial conflict, as well as the constant opposition to management expressed in workgroup
norms regulating output, restrictive practices, secrecy, or other guarded treatment of superiors.
Formal industrial conflict is reserved for organized expressions of conflict articulated through a
trade-union or other worker representative. Its supposed purpose is strategic or instrumental
rather than (or as well as) expressive and may often involve workers who, by themselves, have no
feelings or personal involvement regarding the issues at stake in the dispute. Its characteristic
form is the organized strike: that is, a withdrawal of labour such as to constitute a temporary
breach of contract, using the collective strength of the workforce to avoid sanctions and achieve
adjustments to pay or conditions of work. Strikes may be reinforced by other types of formal
sanction such as the go-slow and work to rule. They may be confined to those directly affected or
may take the form of sympathy strikes by workers in related jobs and industries. Strikes are
deemed to be official if they have been called at the behest of the union leadership and in
accordance with the law and with procedural collective-bargaining agreements.

Q3. Highlights the impact of Industrial Dispute.

Impacts of industrial relations conflict for a business
Industrial relations conflict can affect the business in the following way.
Reduced productivity: Due to lack of interests, labour will not concentrate in quantity and quality
of production. It leads to loss of profit.
Loss of profits: Even though all companies and organizations are targeting in profits, they can‘t
proceed for that goals because of labour absence and decrease in production.
Damage to public Image: Company‘s good will and self image is very important in this
competitive world. So, due to industrial disputes and strikes that image will be get down in people
mind.
Difficulty in recruiting & keeping staff: Employee must have the value and satisfaction in their
working period about the company, but if the firm‘s value has damaged due to industrial disputes
means the company can‘t recruit any other employees to their company and fulfilment of goals.
Wastage of time and Energy: If unnecessary disputes arises inside the organization and it is
continuing means it will result in major discussion and finally it leads to wastage of time and
energy.
Increased costs: The mantra for perfect business is decrease in cots and increase in profits, but the
increase in industrial disputes will have the main problem of increase in costs and decrease in
production and also the profit
Major impacts:
1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved -
labour and senior management.
2. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs.
This causes low or no production resulting in industrial loss.
3. Industrial loss may cause economic depression because many industries are interlinked. A
problem in one industry may drastically affect another industry.
4. The lives of low-level labourers become worse when they are out of work. They may be the
only working members of the family, and their joblessness may lead everyone in the family
to poverty.
5. When industrial conflicts get out of hand, they become a threat to peace and security.
Workers may resort to violence and indulge in sabotage.
Q4. what are the various approaches of Industrial Relation?
Definition: The Industrial Relations or IR shows the relationship between the management and the
workmen within the industry and the role of a regulatory body to resolve the industrial disputes.
IR is perceived differently by a different group of behavioral practitioners and theorists. Some
believed that IR is related to the Class Conflict while some perceived it in terms of Mutual Co-
operation and still others perceived it in terms of Competing Interests of various groups. On the
basis of these perceptions, there are four popular approaches to Industrial Relations. These are:
Unitary Approach: The unitary approach is based on the notion that all the members of the
organization Viz. Managers, workers, and other staff have a common set of objectives, purposes
and interests and, therefore, work in unison towards the accomplishment of shared goals. Here, the
conflict is seen as a temporary divergence which is caused due to the poor management or the
negligence on the part of the employees to understand and mix with the organizational culture.
Pluralistic Approach: The pluralistic approach is just the opposite of unitary approach which is
based on the assumption that an organization is an alliance of powerful and divergent sub-groups
(management and trade unions), having different competing interests are mediated by the
management.
Marxist Approach: The Marxist approach is based on the basic assumption that the conflict is
regarded as the product of a capitalist society. This means that conflict arises not just because of the
rift between the employee and the employer, but also because of the division in the society between
those who owns the means of production (capitalists) and the ones who have only labor to offer.
Human Relations Approach: The Human relations approach is propounded by Elton Mayo, who
is a humanist and believes in the positive nature of the employees. According to him, given human
initiatives from management, the employees positively listens and responds properly to them and
hence there is no room left for the conflict to arise.

Q5. Throw light on forms of Strikes.

Definition: In business terms, a strike can be understood as a curtailment of work, due to the
collective refusal of workers to work, which occurs as a response to employee grievances. It
involves, dropping out of work by any number of workers, employed in a particular industry, with
an aim of creating pressure on the employers, to accept their demands relating to pay scale, working
conditions, trade practices and so forth.
A strike is a situation in which the workers act in concert for stopping or denying to resume work.
The relationship between the employer and employee continue to exist though in a state of
hostile suspension.
Causes of Strike
 Dispute relating to minimum wages, Salary and incentive issues.
 Increment is not up to the performance, Dissatisfaction with the policies of the company.
 Hours of work and interval timings, Holidays and leaves with pay.
 Bonus, Provident Fund, and gratuity, Withdrawal of any facility or allowance.
 Wrongful dismissal of workmen.
 The most obvious reason of strike is the non-payment of wages or salaries to the workers of
the factory by the employers.
Types of Strike:-
Hunger Strike: Strike in which the employees go on fasting, near the workplace or at the residence
of the employer, to force him/her redress their grievances is called hunger strike.
Economic Strike: Economic Strike is the cessation of work by the labors with an aim of imposing
their economic demands like wages and bonus.
In such strike, the workers raise their voices to increase their pay, improve working conditions,
facilitate them with allowances, perquisites, and add-on benefits.
Stay-in Strike: A type of strike, in which the employees come to the office, as usual, take their
seats but do not work and also deny to leave the office premises, when asked to do so.
When such an act is performed in combination, it amounts to stay-in strike. Alternately called as
sit-down, pen-down or tool-down strike.
Go-slow Strike: Otherwise called as a slow-down strike, is one in which the workers do not stop
working, but slow down the entire process by deliberately delaying the production, which results
in the reduction of output.
Sympathetic Strike: A type of strike in which the workers of one department, unit, division, or
industry, go on strike, in support of the workers of another department, unit, division, or industry,
who are already on strike.
This may be an unjustified seizure of rights of the employer, who is not even involved in the
conflict.

Q6. Explain the nature of Grievances Handling.

A grievance is a problem and submitted by an employee or several employees of different types. It
may be concerning a situation or likely to affect the terms and conditions of employment of one
worker or several workers.
If a problem is related to and endorsed by all or majority of employees or if trade union submits a
problem as a general claim it falls outside the scope of grievance procedure and generally comes
under the purview of collective bargaining.
Nature and causes of grievance:
Is it can be seen from the above, the meaning of grievance is restrictive in nature and the decision
as to what constitutes a grievance in an organisational context is arrived at collectively by the
management and the union of that enterprise? When the individual grievances are not redressed
and if other workers get affected by the same situation, they may become a collective grievance.
The collective grievances normally come under the purview of collective bargaining.
Although the precise nature of the causes of a grievance differs from one organisation to
another in general they tend to fall under the following categories in most Indian organisations:
(i) promotions: (a) Suppression (b) Acting promotion (c) Seniority (d) Pay fixation
(ii) Compensation: (a)Increments (b) Payment (c) Recovery of dues
(iii) Amenities: (a) Inequitable distribution (b) Entitlement (c) Medical benefits
(iv) Service matters: (a) Transfers (b) Continuity of service (c) Superannuation
(v) Disciplinary action: (a) Punishment (b) Fines (c) Victimisation
(vi) Nature of job: (a) Job allocation
(vii) Condition of work: (a) Safety (b) Hazards
(viii) Leave:

Q7.Discuss the function of Trade Union.

Labour unions or trade unions are organizations formed by workers from related fields that work
for the common interest of its members. They help workers in issues like fairness of pay, good
working environment, hours of work and benefits. They represent a cluster of workers and provide
a link between the management and workers.
FORMS OF TRADE UNIONS
There are three forms of trade unions: -
Classical: A trade union’s main objective is to collectively safeguard the interests of its members in
a given socio-economic-political system. Trade unions are the realistic expressions of the needs,
aspirations and wishes of the working class.
Neo-classical: It goes beyond the classical objectives and attempts to improve other wider issues
like tax reliefs, raising saving rates, etc.
Revolutionary change in the system: Establishing the rule of working class even through
revolutionary means such as violence, use of force, etc.
FUNCTIONS OF TRADE UNIONS
Militant or Protective or Intra-mutual functions: These functions include defending the workers’
interests, i.e., hike in wages, providing more benefits, job security, etc., through the means of
collective bargaining and direct action such as strikes, gheraos, etc.
Fraternal or extramural functions: These functions include ensuring the financial and nonfinancial
assistance available to workers during the periods of strikes and lock-outs, extension of medical
facilities during slackness and casualties, provision of education, recreation, recreational and
housing facilities, provision of social and religious benefits, etc.
Political functions: These functions include affiliating the union to a political party, assisting the
political party in enrolling members, amassing donations, seeking the help of political parties
during the periods of strikes and lock-outs.
Social functions: These functions include getting involved in social service activities, discharging
social responsibilities through various sections of the society like educating the customers etc.

Q8.Define the term Settlement Machinery.

Settlement Machinery
 Conciliation
 Conciliation is a process by which representatives of workers and employers are brought
together before a third person or a group of persons with a view to persuade them to come
to a mutually satisfying agreement.
 The conciliator tries to bridge the gulf between the parties
 If he does not succeed, he tries to reduce the differences to the extent possible.
 He persuades parties to take a fresh look at the whole issue.
 He only gives possible lines of solution for consideration. He never tries to force the parties
to accept his viewpoint. He never offers judgement on the issues.
 The process of conciliation, has certain amount of flexibility and informality.

Q9.What do you mean by Adjudication? Highlight its importance.

Adjudication is a mechanism for resolving disputes in the construction industry, introduced as a
compulsory means of dispute resolution by the Construction Act 1996.
Adjudication has many benefits and perhaps the foremost of these has to be the efficiency of the
process as it’s designed to ensure the smooth running of any contract under which a dispute arises
and to enable this dispute to be quickly and efficiently resolved. Construction disputes are
generally complex and expensive to litigate, while adjudication tends to cut through that
complexity offering fast and practical solutions, with the process typically taking place over a 28
day period from the selection of the adjudicator to the final decision, saving time and money.
Importance of Adjudication:
 Adjudication produces a final decision that the parties are encouraged to respect – and the
majority of adjudication decisions do tend to be accepted by the parties as the final result
  Parties can select the adjudicator they wish to use or at least the characteristics of the
adjudicator
 The adjudicator can act as an investigator
 Due payments can be enforced without waiting for an arbitration award and because of the
quick turnaround times in the adjudication process this can result in a business receiving a
significant and speedy cash injection
 There are rarely lengthy oral arguments or legal submissions
 There is no cross examination or formal evidence
 The adjudicator and disputing parties can all agree – and adhere – to a fast, flexible and
streamlined process

Q10.Explain the function of Mediation.

Mediation is an ADR method where a neutral and impartial third party, the mediator, facilitates
dialogue in a structured multi-stage process to help parties reach a conclusive and mutually
satisfactory agreement. A mediator assists the parties in identifying and articulating their own
interests, priorities, needs and wishes to each other. Mediation is a “peaceful” dispute resolution
tool that is complementary to the existing court system and the practice of arbitration.
Functions of a successful mediation.
INTRODUCTORY MEETING: The introductory portion of the mediation is a way for all parties
involved to feel comfortable with the matter. The mediator will usually introduce him or herself to
the parties and explain the role that the mediator will take, insure that he/she is a neutral
individual whose goal is to insure are result that is both fair and just for each party involved. The
mediator, if given pre-mediation documents, will give a general statement about what he/she sees
as the issue involved. Lastly the mediator will outline what the process will be in the mediation
and discuss the protocol that should be followed.
STATEMENT OF THE PROBLEM: After the introduction the mediator will give each party the
opportunity to explain the issue and tell their side of the story. It is imperative at this time that
the party not speaking is silent. The entire point of mediation is to come to a reasonable
agreement, when parties start bickering with each other the point of mediation is lost.
INFORMATION GATHERING: If they have not already been submitted to the mediator, the
mediator will request something in the form of a brief detailing the facts, evidence and any other
pertinent information that may help the mediator come to a conclusion. After this the mediator
will ask questions of the parties individually in order to flush out reasons, both fiscal and
emotional, for why that party has operated in a certain manner or why they seek a certain result.
IDENTIFICATION OF THE PROBLEM: This step is somewhat self-explanatory. The mediator,
through the information received through briefs and previous dialogue will discuss what he/she
feels is the heart of the issue.
BARGAINING: Once the issue or issues have been determined the bargaining process will begin.
The bargaining session is the most creative of the steps. It can involve many different types of
focus including group processes, discussion groups and hypothetical’s.

Q11.Explain the prerequisities of successful Industrial Relation.

PREREQUISITES FOR SOUND INDUSTRIAL RELATIONS
a. Equity and Fairness: Equity refers to equal treatment to one and all under comparable
circumstances. Equity and fairness are used synonymously in industrial relations. The concept of
fairness is an objective when one applies a technical yardstick like market forces for its evaluation.
For instance, the management may consider it fair to freeze wages in time of recession, while
workers may feel that it is unfair to do so in view of the rise in the cost of living. The concept of
fairness is utilitarian when one goes by what the majority accepts. The notion of fairness becomes
relative when one considers whether or not one is getting a fair share of pay in relation to what
others with similar qualifications and experience are receiving.
b. Power and Authority: Power has the ability to influence, impose or control. It implies the use of
force. Power emanates from six major interrelated aspects: the power to reward and / or punish
 power to coerce others position power reference power reference power due to personal
attributes expert power due to one’s access to information, knowledge, or experience
associational power through membership in trade unions, employers organizations, chambers of
commerce, networking/coalitions, etc.
c. Individualism and Collectivism:The fundamental basis of a democratic society is the freedom of
the individual. In an employment relationship, collectivist basis may negate or limit an individual’s
freedom. The closed-shop system is a case in point. An individual should have the right to join a
trade union. Likewise, he or she should have the right not to join a union. Compelling an employee
to join a union due to the union shop clause or closed-shop system in a collective agreement
negates the right of freedom of the individual employee.

Q12.Explain the Industrial Dispute Act, 1947 in detail.

Industrial disputes are collective dissent and protest against the terms and conditions of
employment and work. In the Industrial Disputes Act, 1947, an Industrial dispute means
“Difference between employer and employer or between employer and workmen or between
workmen and workmen, or any dispute among these which are related to the employment or
non-employment or terms and conditions of employment of any person”. Practically, Industrial
dispute primarily refers to the disengagement between employers and their employees. It is
not a personal dispute of any one person. It engages a large number of workers’ association
having a correlated interest.
Institution for settlement of Industrial Disputes
Conciliation: It refers to the process in which representatives of employees and employers
come together to a third party in a view to discuss the dispute and reconcile their differences
and conclude to an agreement by mutual consent.
In this process the third party known as a facilitator. In this type of dispute, the state
intervenes for the settlement process. This act gives power to the Central & State
governments in order to appoint an officer known as conciliation officer and board for
conciliation whenever circumstance needed. The duties of a conciliation officer are:
Arbitration: It is a process where a neutral third party hears to the parties in disputes, gather
the information regarding the dispute, and then come to conclusion and decide the matter
which is binding on both the parties.
The difference between both the officers as, conciliator only assists the parties to conclude to a
settlement, whereas the arbitrator hears to both the parties and then passed his judgment.
Pros and cons of Arbitration in Industrial Disputes
It is established by the parties and therefore both parties have conveyed their faith in the
process of arbitration.
Nature is a flexible and informal process.
The concept is based on mutual consent of the parties and hence, therefore, it helps for
healthy industrial functions and relations.
Q13.Explain the role of Trade Union in India.
Trade unions in India are governed by the Trade Unions Act of 1926, which is the main legislation
that provides various rules, regulations and controlling mechanisms related trade unions.
 The contribution of trade unions to the development of the labour movement in South Asia,
as well as at the global level, is well recognised. Attention has, however, remained focused
on the formal sector.
 Unionization is almost non-existent in the small and informal sector.
 The union structure in India is rather well-developed despite the fact that only 20% of
registered unions have sought affiliation to any of the other of the 13th Central Trade Union
Organizations (CTUO).
 The extent of unionization in the country is as high as 90% within the public sector, while,
surprisingly, it is much lower in the private sector.
 The changing role of the government in India and the introduction of new technology have
both radically altered the employment scenario. Shifts in job opportunities from the formal
to the informal sector and increasing employment opportunities for educated and skilled
workers have necessitated a paradigm shift in the approach and function of unions.
 Indian trade unions have, however, been slow in reacting to these changes. This, in turn, has
resulted in the loss of membership within these unions. Statistics related to labour, as
released by the Government of India, indicate that the membership in unions that
submitted returns to the appropriate authority under the Trade Union Act of 1926 was less
than 2% of the total labour force in 1990, which, in turn, constituted about 30% of the
organised sector workforce. Workers have also been seen to move to alternate forms of
trade unions.

Q14. Discuss the thre-Tier Adjudication.

1. Labour Court: The appropriate government may by notification in the official Gazette,
constitute one or more labour Court for adjudication of industrial disputes relating to the
following matters:
 The propriety or legality of an order passed by an employer under the standing orders.
 The application & interpretation of standing orders
 Discharge or dismissal of workmen including reinstatement of, grant of relief to, workmen
wrongfully dismissed.
 Withdrawal of any customary concession or privilege
 Illegality or otherwise of a strike or lockout &
 All matters other than those specified in the Third schedule.
2. Industrial Tribunal: The appropriate government may, by notification in the official gazette
constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to
the following matters:
 Wages, including the period & mode of payment, Compensatory & other allowancesa
 Hours of work & rest intervals, Leave with wages & holidays
 Bonus, profit sharing, provident fund & gratuity.
 Shift working otherwise than in accordance with standing orders.
 Classification by grades; Rules of discipline, Rationalization
 Retrenchment of workmen & closure of establishment
3 National Tribunal: The Central government may, by notification in the official gazette, constitute
one or more National Industrial Tribunals for the adjudication of industrial disputes:
 involving questions of natural importance or;
 which are of such a nature that industries in more than one state are likely to be interested
in or affected by, such disputes.

Q15. Differentiate between Mediation and Conciliation.

What is Mediation?
Mediation is where an impartial third party facilitates a conversational process between the
disputing parties to come to a satisfactory resolution. Mediation is a voluntary and non-binding
process, however, is regulated by the Code of Civil Procedure, 1908.
Mediation allows for parties from both sides to directly express their thoughts on the dispute at
hand and to create a unique solution that will meet both parties’ needs. The mediator should not
be a judge or make decisions. The role of the mediator is to facilitate the conversation through
negotiation- and communication techniques.
Mediation is based on following a process and certain protocols. This process allows the parties to
focus on the real problems behind the dispute and requires all parties to actively participate. The
aim is to devote more time to finding a voluntary, functional, durable, and peaceful solution. The
mediation process allows for any of the disputants to withdraw from mediation and refer the
dispute to the court system.
What is Conciliation?
Conciliation is focused on building a positive relationship between the disputing parties.
Conciliation looks for a right that has been violated, and then try to find the best course of action.
This is done through a facilitator that drives the disputants towards a satisfactory goal. This
method is more fixed by law and governed by the Arbitration and Conciliation Act, 1996.
Conciliation is more often used preventatively, to stop a conflict from developing into something
substantial. It is characterized by the parties’ voluntary participation in the process with the intent
of finding a beneficial solution for all parties involved. It has a strict confidentiality rule that is
enforced by law.
Conciliation allows for the facilitator to play a more direct role in the solution for the dispute. The
facilitator can make suggestions towards certain proposals, and give advice for certain solutions.
Therefore should the facilitator be an expert in a certain field that relates to the dispute at hand.
The “impartial” role, in conciliation, is rather seen as an authoritative figure with the role of
finding the most beneficial solution to the dispute. Most often it is the facilitator that proposes the
terms of the agreement, and not the disputant parties.
Differences between Mediation and Conciliation:
As can be seen above mediation and conciliation are similar in many aspects, and it is
understandable that they are used synonymously. Yet they must be distinguished. So what are the
main differences between the two Alternative Dispute Resolutions?
1. In mediation, the facilitator should be impartial and objective to the parties’ dispute, while
with conciliation the facilitator plays a more active role.
2. In mediation, the parties are encouraged to find a solution, with the facilitator only acting as
a guide. While with conciliation the facilitator has the responsibility to identify the
objectives of the parties and actively help find a solution.
 3. Within mediation, the facilitator does not give any judgement. With conciliation, the
facilitator also plays the role of evaluator and intervener that base the solution on what is
deemed the most beneficial solution according to the facilitator.
4. It is not necessary to find a resolution when it comes to mediation, but the aim is an
agreement. With conciliation, a resolution is a necessary outcome and is executable as a
decree of the civil court.
5. Mediation is governed by the Code of Civil Procedure Act, 1908. Conciliation is governed by
the Arbitration and Conciliation Act, 1996.

Q16. What are the ways to achieving Industrial Peace? Discuss.

Sound IR does not happen automatically. Instead, developing and maintaining sound IR require
conscious and deliberate efforts to be made in this direction. Following help build sound IR in an
industrial organisation:
1. Developing Trust between Labour and Management:
Research studies report that trust between labourers and managers serves as a foundation for
developing sound IR in an organisation.
Among others, there may be two most effective ways to create trust between the IR parties:
(i) To build competence in both labourers and managers, and
(ii) To develop and practice right human resource practices in the organisation. In fact, it is trust
only that binds labour and management together.
2. Existence of Sound and Democratic Trade Unions: One another prerequisite for a sound IR is
the existence of sound and democratic trade unions to bargain with management. It is the sound
and democratic trade union that can protect the employee’s interest in terms of wages, benefits,
working conditions, job security and so on. These make employees satisfied and satisfaction
permits no alibis and grievance.
3. Maintenance of Industrial Peace: Peace promotes prosperity and prosperity supports
happiness. In an industrial organisation, peace can be established through several ways. To
mention a few, establish machinery for the prevention and settlement of industrial disputes. Such
machinery should include both legislative and non-legislative measures. Arm the Government with
appropriate powers to settle the industrial disputes wherever necessary.
4. Continuous Feedback and Monitoring: Feedback serves as an input for improvement in all
types of activities and so in IR as well. A properly devised feedback mechanism enables the HR
managers to spot the grey areas in IR system and, then, take proactive actions to solve the
problems before these assume alarming proportions.
5. Professional Approach:Understanding human behaviour has ever been a complex
phenomenon. And the same has become more so in case of modem knowledge workers. This
underlines the need for handling with employees, or say, IR by the persons having professional
competence and approach in the subject. These persons need to be well versed with whole gamut
of employee/human behaviour at work.

Q16. Explain the Procedure for Redressal of Grievance Handling.

Grievance redressal machinery A grievance procedure is a formal process which is preliminary to
an arbitration, which enables the parties involved to attempt to resolve their differences in a
peaceful manner. It enables the company and the trade union to investigate and discuss the
problem at issues without in any way interrupting the peaceful and orderly conduct of business.
When the grievance redressal machinery works effectively, it satisfactorily resolves most of the
disputes between labour and management.
The grievance procedure may be of an open door type or of step ladder type. In an open door
policy the management asserts that no employee is prevented from going to it directly with his
grievance and even meet the head of the firm in an effort to have his grievance properly attended
to it. This type of policy is useful in case of small units.
Grievance Procedure
In an unionized organisation, the operation of the grievance procedure may contain the following
steps:
1. The aggrieved employee verbally explains his grievance to his immediate supervisor or in a
conference or a discussion specifically arranged for the purpose. The employee seeks
satisfaction from his supervisor. The grievance can be settled if the supervisor has been
properly trained for the purpose, and if he adheres strictly to a basic problem solving
method.
2. The second step begins when the grievance is not settled by the supervisor. In this case it is
sent to a higher level manager with a note in which are mentioned the time, place and
nature of the action to which the employee objects. The higher level manager is generally a
superintendent or an industrial relations officer.
3. Now the grievance is to be submitted to the grievance committee since the decisions of the
supervisor and of the higher level manager have not solved the problem. The committee
which is composed of some fellow employees, management representatives, considers the
record and may suggest some possible solution.
4. If the decision or suggestion of the grievance committee is not accepted by the grievant he
may approach the management or the corporate executive. 9 Management Human
Resource Management Grievance Handling
5. The final step is taken when the grievance is referred to an arbitrator who is acceptable to
the employee as well as the management. In practice grievance procedure differs from
company to company. For example at Patni Computers the employees can file their
complaints on the intranet through the “E-Care”-the grievance resolution system.

Q17. Discuss the pre-requisities of effective Collective Bargaining.

Collective bargaining
Everything you need to know about the pre-requisites for effective collective bargaining. Collective
bargaining is an important method of regulating relations between employers and employees.
Collective bargaining involves negotiation, administration and enforcement of the written
contracts between the employees and the employers.
Collective bargaining also includes the process of resolving labour-management conflicts.
Collective bargaining is a joint decision-making process by employers and employees. Therefore,
its effectiveness depends on their attitudes and the relevant environment in which collective
bargaining takes place. If these factors are conducive, collecting bargaining may be a good
mechanism for preventing the emergence of industrial disputes.
For collective bargaining to be effective, there are certain prerequisites which are as follows:
1) Favourable Political Climate: The government and the public opinion must be convincedthat
collective bargaining is the best method of regulating employment conditions. The
government should remove all legislative restrictions which hamper collective bargaining. Itcan
also confer a right to bargain collectively, lay down the form and content of collective
agreement, register these agreements and assist in their enforcement. If collective bargaining is
to be fully effective, a favourable political "climate" must exist.
2) Freedom of Association: Freedom of association is essential for collective bargaining.
When such freedom is denied, collective bargaining is impracticable, and when it is
restricted, collective bargaining is also restricted. Freedom of association can be facilitated
byremoval of legislative restrictions on combinations where they exist, leaving workers and
employers free to form associations as they please.
3) Stability of Trade Unions: Workers may have freedom of association but, unless they
make use of that right and form and maintain stable unions, collective bargaining will be
ineffective. If a union is weak, employers can say that it does not represent the workers and
will refuse to recognise it or negotiate with it.
4) Recognition of Trade Unions: Employers should be required by law to give recognition to
representative trade unions. It is in the interest of an employer to give recognition to
representative trade unions.
5) Willingness to "Give and Take": If one or both sides merely make demands when they meet,
there can be no negotiation or agreement.
6. Availability of Data: The employer must ensure that all the required records are readily
available. Facts and figures concerning rates of pay, fringe benefits, manpower forecast,
technological changes etc. provide a rational basis for negotiations.
7. Problem-Solving Attitude: For successful collective bargaining, both employer and
employee must adopt a problem-solving approach rather than fighting approach. The teams
should consist of persons with an analytical mind, objective outlook and cool temper.
8. Continuous Dialogue: For successful collective bargaining, continuous dialogue between the
employer and employee is necessary. As highly controversial issues are easily solved through
continuous dialogue.