1. IR can be defined as a coin having two faces: co- operation and conflict.

4 4 The Industrial
Relation relations also called as labor - management, employee-employers relations. IR is
dynamic and developing socio-economic process.  Industrial Relation is that part of
management which is concerned with the manpower of the enterprise – whether machine
operator, skilled worker or manager. The term “industrial relations” commonly denotes “
employee-employer relations”
2. 5.  Involves the study of conditions conducive to the labour, management co-operation as
well as the practices and procedures. The study of industrial relations also includes vital
environmental issues.  The focus is on the study of the attitudes, relationships, practices
and procedures developed by the contending parties to resolve or at least minimize conflicts.
 Industrial Relations do not emerge in vacuum; they are born out of “employment
relationship” in an industrial setting. 5
3. 6.  Makes an in depth analysis of the interference patterns of the executive and judiciary in
the regulation of labour-management relations. It studies the laws, rules, regulations,
agreements, awards of court, customs and traditions, as well as policy framework laid down
by the government. 6
4. 7.  Contents Methods  Characters  Institutions 7 Industrial relations encompass all such
factors that influence behaviour of people at work. Some are -
5. 8.  Vesting of a proprietary interest of the workers in the industries in which they are
employed. Socialization and rationalization of industries by making the state itself a major
employer.  State control over industrial undertakings with a view to regulating production
and promoting harmonious industrial relations.  Improvement of economic conditions of
workers. 8
6. 9.  The mechanism of handling conflicts between employers and employees, in case
conflicts arise. 9 The role of various parties’ viz., employers, employees, and state in
maintaining industrial relations.  Employer-employee relations i.e. relations between
management and employees.  Labour relations, i.e., relations between labour union and
management. 
7. 10.  High Morale - Employees work with great zeal with the feeling in mind that the interest of
employer and employees is one and the same, i.e. to increase production. Reduction in
Industrial Disputes - Good industrial relation reduce the industrial disputes. Ex- Strikes,
lockouts, go-slow tactics, gherao and grievances  Uninterrupted Production - There is
uninterrupted flow of income for all. This means, continuous employment for all from
manager to workers. 10
8. 11.  Reduced Wastage - Wastages of man, material and machines are reduced to the
minimum and thus national interest is protected. New Programmes – New programmes for
workers development are introduced in an atmosphere of peace such as training facilities,
labor welfare facilities etc.  Mental Revolution – The main object of industrial relation is a
complete mental revolution of workers and employees. 11
9. 12.  Employees: Generally, employees perceive IR as a means to improve their conditions of
employment, voice against any grievances, exchange views and ideas with management
and participate in organisational decision making processes. Employees participate in the IR
system through their associations, or say, trade unions.12
10. 13.  Employer: In the corporate organisation, employer is represented by the management.
Like employees’ associations, employers also form their associations at the local, industry
and national levels. Examples of employers’ associations at all India level are Associated
Chambers of Commerce’s and Industry (ASSOCHAM), Confederation of Indian Industry
(CII), Federation of Indian Chambers of Commerce and Industry (FICCI), etc.13
11. 14.  Government: The role of government in the matter of industrial relations has been
changing along with changes in industrial environment and management perspective. For
 example, till century, the governments everywhere in the world adopted a policy of laissez
faire. This relationship is enforced and maintained through labour courts, industrial tribunals,
wage boards, investigating and enquiry committees, etc.14
12. Multiplier effects: The direct loss caused due to industrial conflict in any one plant may not be
very great, the total loss caused due to its multipliers effect on the total economy is always
very great. 25
13. 26.  Frustration and social cost: Every man wants to satisfy his social and egoistic needs
also. When he finds difficulty in satisfying these needs he feels frustrated. They reduce
cordiality and aggravate social tension. Resistance of change: Dynamic industrial situation
calls for change more or less continuously. Methods have to be improved. Economics have
to be introduced. New products have to be designed, produced and put in the market. 26
14. 27. 27
15. 28.  Management should encourage right kind of union leadership. The personnel manager
should not vie with the union to gain workers’ loyal to both the organization.  The personnel
manager should remove any distrust by convincing the union of the company’s integrity and
his own sincerity and honesty.  All basic policies and procedures relating to Industrial
Relation should be clear to everybody in the organization and to the union leader.  Both
management and unions should develop constructive attitudes towards each other. 28
16. 29.  Social and Psychological satisfaction – Identifying the social and psychological urges of
workers is a very important steps in the direction of building good industrial relations
17. . Economic satisfaction of workers – Psychologists recognize that human needs have a
certain priority. Need number one is the basic survival need.
18. History of industrial relations –A good history is marked by harmonious relationship between
management and workers. A bad history by contrast is characterized by militant strikes and
lockouts.
19. 30.  Negotiating skills and attitudes of management and workers – Both management and
workers’ representation in the area of industrial relations come from a great variety of
backgrounds in terms of training, education, experience and attitudes. Enlightened Trade
Unions – The most important condition necessary for good industrial relations is a strong and
enlightened labor movement.  Off-the-Job Conditions – An employer employs a whole
person rather than certain separate characteristics. 30
20. 31.  Expected group reaction :Expected group reaction balances what we know of human
nature in groups against an individual’s situation in the light of the policy that has been
formulated and implemented. Policy awareness : Policy awareness underscores the idea of
the consistency of treatment and the precedent value of any decision which a management
takes