Lecture IR 2 2021

Arab
Academy for Science, Technology COLLEGE OF ENGINEERING AND
and Maritime Transport INDUSTRIAL RELATIONS TECHNOLOGY
LECTURE
LECTURE (
LECTURE (2
(2)
(2
MAIN
MAIN CONCEPTS OF
CONCEPTS OF
INDUSTRIAL RELATIONS
1` Dr. Kamal El-Nahhas 20 October 2020

Arab Academy for Science, Technology COLLEGE OF ENGINEERING AND
LECTURE OUTLINES
LECTURE OUTLINES
 Features Pertaining to Industrial Relations
Features Pertaining to Industrial Relations
 Objectives of Industrial Relations
 Function of Industrial Relations
 p
Aspects of Industrial Relations
 Systems of Industrial Relations
 Impacts of Harmonious Industrial Relations
Impacts of Harmonious Industrial Relations
 Causes of Poor Industrial Relations
 Role of Three Actors To IR

FEATURES PERTAINING TO IR
1 Industrial Relation do not emerge in vacuum.
1. vacuum
Without the existence of the two parties, i.e.
labor and management,
management this relationship cannot
exist
2 Industrial
2. I d i l Relation
R l i are characterized
h i d by b both
b h
conflict and co‐operations.
So the focus of Industrial Relations is on the study
of the attitudes, relationships, practices and
procedure developed by the contending parties to
resolve or at least minimize conflicts.
1.
Dr. Kamal El-Nahhas 20 October 2020
FEATURES PERTAINING TO IR
3. As the labor and management do not
p
operate in isolations but are p
parts of large
g
system, so
th study
the t d off Industrial
I d t i l Relation
R l ti also
l includes
i l d
vital environment issues like technology of
the workplace, country’s socio‐economic
and p political environment,, nation’s labor
policy, attitude of trade unions workers and
employers.
employers
OBJECTIVES OF INDUSTRIAL RELATIONS
A. To safeguard the interest of labor and management
by securing the highest level of mutual understanding
and good‐will among all those sections in the industry
which participate in the process of production.
B. To avoid industrial conflict or strife and develop
harmonious relations, which are an essential factor
in the
h productivity
d off workers
k andd the
h industrial
d l progress
of a country.
C. To raise
i productivity
d i i to a higher level in an era of full
employment by lessening the tendency to high turnover
and frequency absenteeism.
absenteeism
D. To establish and maintain the growth of an
Industrial Democracy based on labor partnership
in the sharing of profits and managerial
decisions, so that individuals personality may
grow its full stature for the benefit of the
industry and of the country as well.
E. To eliminate, as far as is possible and practicable
strikes and lockouts by providing reasonable
wages, improved living and working conditions.

F. To establish government control of such plants
and units as are running at a loss or in which
productions has to be regulated in the public
interest.
G. Improvements in the economic conditions of
workers in the existing state of industrial
managements and political government.
H Control exercised by the state over industrial
H.
undertaking with a view to regulating production
and promoting harmonious industrial relations.
relations
Objectives of Industrial Relations
j
To safe guard the
interests To avoid
To avoid
industrial
conflict
co ct
To raise
To raise To establish and
To establish and
productivity maintain the
growth
To establish
government
control
Function of IR
1. To promote and develop labor management
relation.
2. To bring better understanding and cooperation
between employers and workers.
3. To provide opportunity to workers to involve
in decision making process with management.
management
4. To encourage and develop trade unions in
order to improve the workers' strength.
Function of IR
5. To establish a proper channel of communication
between workers and management.
g
6. To increase the morale and discipline of workers.
7 To ensure better working conditions,
7. conditions living
conditions and reasonable wages.
8 To
8. T develop
d l employees
l t adapt
to d t themselves
th l f
for
technological, social and economic changes.
9. To make positive contributions for the economic
development of the country.
10 Dr. Kamal El-Nahhas 22/08/2013

ASPECTS
ASPECTS OF INDUSTRIAL RELATIONS
OF INDUSTRIAL RELATIONS
i. Labor Relations, i.e. relations between union and
management.
ii. Employer‐employees relations, i.e. relations between
management and employees.
employees
iii. Group relations, i.e. relations between various groups of
workmen.
workmen
iv. Community or Public relations, i.e. relations between
industry and society.
v. Promotions and development of healthy labor‐
managements
g relations.
vi. Maintenance of industrial peace and avoidance of
industrial strife
vii. Development of true industrial Democracy.
IMPACTS OF HARMONIOUS INDUSTRIAL

RELATIONS
The impacts of harmonious industrial relations can

b seen from
be f severall aspects
t as the
th following:
f ll i
Impacts Upon A Country
i. politics
ii. economics
iii. social


RELATIONS
Impacts Upon An Organisation

i. employers
ii. employees
iii. profitability
iv. productivity
p y
v. compensation etc.

SYSTEMS OF INDUSTRIAL RELATIONS

Almost all industrial relations systems are
tripartite, i.e. they are made up of three
parties/participants/groups – as the following:
i. the employer
ii
ii. th employee
the l
iii. the government


These groups may interact differently (in
different countries) in making decisions related to
work life.
The decisions can be made in any of three ways
i.e. :
i. unilaterally
ii. bilaterally or
iii. tripartite manner

CAUSES OF POOR INDUSTRIAL RELATIONS
P
Perhaps
h the
h main i cause or source off poor industrial
i d i l relations
l i
resulting in inefficiency and labour unrest is mental laziness
on the part of both management and labour.
labour
 Management is not sufficiently concerned to ascertain the
causes of inefficiency and unrest following the laissez‐faire
policy, until it is faced with strikes and more serious unrest.
 Even with regard to methods of work, management does not
bother to devise the best method but leaves it mainly to the
subordinates to work it out for themselves.

 Unhealthy working conditions;
 Indiscipline;
 Lack of human relations skill on the part of supervisors and

other managers;
 Desire
D i on the
th partt off the
th workers
k f higher
for hi h bonus
b and
d the
th
corresponding desire of the employers to give as little as
possible.

 Inappropriate introduction of automation without providing the
right climate;
 Unduly heavy workloads;
 Inadequate welfare facilities;
 Dispute on sharing the gains of productivity;
 Unfair labor practices, like victimization and undue dismissal;

EFFECT OF POOR INDUSTRIAL RELATIONS
Poor Industrial Relation produces the following ill‐
effects:
1. Multiplier effects: Modern industry and for that
matter modern economy are interdependent.
Hence although 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.

2. Fall in normal tempo: poor Industrial Relations
adversely effect the normal tempo of work so
that work far below the optimum level.
Costs build up. Absenteeism and labor turnover
increase.
Plants discipline breaks down and both the
quality and quality of production suffer.

3. 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. Each of these
tasks involves a whole chain of changes and this is
resisted bitterly if these are industrial conflict.

SUGGESTIONS TO IMPROVE INDUSTRIAL RELATIONS
A. Both management and unions should develop

constructive attitudes towards each other
B. All basic policies and procedures relating to
Industrial Relation should be clear to everybody
in the organization and to the union leader.
The personnel manager must make certain that
line people will understand and agree with these
policies.
policies

ROLE OF THREE ACTORS TO IR
ROLES
ROLES OF THE GOVERNMENT IN
OF THE GOVERNMENT IN
INDUSTRIAL RELATIONS
Four roles are played by the federal government as
follows:
i. Legislator: through the Parliament (legislating
laws)
ii. Administrator: through the Ministry of Human
Resources (enforcing labour legislations)
iii. Participant: through Minister of Human
Resources
iv. Employer: the largest in the country (public
sector).
Role of Employers Organization

Role of Employers Organization
 Promote
Promote and protect of the interest of employers engaged
and protect of the interest of employers engaged
in Industry, Trade and Commerce.
 Advice offeringg
 Bridge between Union and Government
 Train and develop staff members of concern members of
p
Associations
 Creating and sustaining employee motivation
 Ensuring commitment from employees
 Negotiating terms and conditions of employment with
TU leaders
 Sharing decision making with employees
25 Dr. Kamal El-Nahhas 20 October 2020
Role of Trade Unions in IR
 Achieving higher wages
 To offer responsive co‐operation in improving level
of production,
production discipline etc.
etc
 To promote individual and collective welfare
 To improve working and living conditions
 To enlarge the opportunities of promotion and
training.
 To increase implementation of democratic way of
decision making at various levels.
 To obtain improved status for the worker in his/her
26
work Dr. Kamal El-Nahhas 20 October 2020
Factors affecting Industrial Relations
 Institutional Factors – State policy, labour

laws collective bargaining agreement,
laws, agreement labour
unions.
 Economic Factors – type t off business
b i
organization sole proprietorship,
partnership Economic Policies,
partnership, Policies labour supply
in market.
 Social
S i l Factors
F t – Cast,
C t colour,
l social
i l values,
l
norms, social status
27 © Dr. Parikshit Joshi 20 October 2020

Factors affecting Industrial Relations
 Technological Factors – introduction of new and

improved technology
 Psychological Factors – owners attitude,
perception of workforce, motivation, morale.
 Political Factors – political system, system of
government political philosophy, attitude of
government towards trade unions.
 Global Factors – international relations, global
conflicts,, international labour agreements.
g
28 © Dr. Parikshit Joshi 20 October 2020
DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND

HUMAN RELATIONS
The term “Industrial Relations” is different from
“Human Relations”.
Industrial relations refer to the relations between
the employees and the employer in an industry.
Human relations refer to a personnel‐management
policy to be adopted in industrial organizations to
develop a sense of belongingness in the workers
improves their efficiency and treat them as human
beings and make a partner in industry.


HUMAN RELATIONS
Industrial relations cover the matters regulated by
law or by collective agreement between employees
and employers.
On the other hand, problems of human relations
are personal in character and are related to the
behavior of worker where morale and social
elements predominated.


HUMAN RELATIONS
Human relations approach is personnel philosophy
which can be applied by the management of an
undertaking.
The problem of industrial relations is usually dealt
with a three levels – the level of undertaking, the
industry and at the national level.
To sum up the term “Industrial Relations” is more
wide and comprehensive and the term “Human Human
Relations” is a part of it.

Scope
Scope of IR
of IR
The scope of industrial relations includes all aspects of
relationships such as bringing cordial and healthy
labour management relations, creating industrial
peace and developing industrial democracy.
The cordial and healthy labour management relations
could be brought in‐
 by
b safeguarding
f di the
th interest
i t t off the
th workers;
k
 by fixing reasonable wages;
 by providing good working conditions;

Scope
Scope of IR
of IR
 by providing other social security measures;
 by maintaining healthy trade unions;
 by collective bargaining.
 The industrial peace could be attained –
 by setting industrial disputes through mutual
understandingg and agreement;
g ;

Scope
Scope of IR
of IR
 by evolving various legal measure and setting up
various machineries such as Works Committee,
Boards of Conciliation, Labour Courts etc.
 The industrial democracy could be achieved –
 by allowing workers to take part in management;
and
 by recognition of human rights.
rights

 State four objectives of Industrial Relations
 What are the impacts of harmonious industrial relations upon an organisation?
 How could the growth of an Industrial democracy be established and maintained?
How could the growth of an Industrial democracy be established and maintained?
 How to eliminate, as far as is possible and practicable strikes and lockouts ?
 What are the three ways that the decisions can be made?
 p g y
What is the main cause of poor industrial relations resulting in inefficiency and labour unrest?
 Explain four of the causes may lead to poor industrial relations.
 Discuss two of effects of poor industrial relations on the economic life of the country.
 Discuss two suggestions to improve industrial relations.
 What are the four roles are played by the federal government?
 What is the role of employers' organization in industrial relations? – state four
 What is the role of trade unions in industrial relations? – state four
 Discuss the important factors affecting Industrial Relations
Discuss the important factors affecting Industrial Relations.
 difference between industrial relations and human relations
 What is the scope of industrial relations?
 y g
How the cordial and healthy labour management relations could be obtained?

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Arab

1` Dr. Kamal El-Nahhas 20 October 2020

2` Dr. Kamal El-Nahhas 20 October 2020

Dr. Kamal El-Nahhas 20 October 2020

10 Dr. Kamal El-Nahhas 22/08/2013

IMPACTS OF HARMONIOUS INDUSTRIAL

The impacts of harmonious industrial relations can

Dr. Kamal El-Nahhas 20 October 2020

IMPACTS OF HARMONIOUS INDUSTRIAL

Impacts Upon An Organisation

Dr. Kamal El-Nahhas 20 October 2020

SYSTEMS OF INDUSTRIAL RELATIONS

Dr. Kamal El-Nahhas 20 October 2020

SYSTEMS OF INDUSTRIAL RELATIONS

Dr. Kamal El-Nahhas 20 October 2020

16 Dr. Kamal El-Nahhas 22/08/2013

 Lack of human relations skill on the part of supervisors and

17 Dr. Kamal El-Nahhas 22/08/2013

 Unduly heavy workloads;

 Inadequate welfare facilities;

 Dispute on sharing the gains of productivity;

 Unfair labor practices, like victimization and undue dismissal;

18 Dr. Kamal El-Nahhas 22/08/2013

Dr. Kamal El-Nahhas 20 October 2020

Dr. Kamal El-Nahhas 20 October 2020

Dr. Kamal El-Nahhas 20 October 2020

A. Both management and unions should develop

Dr. Kamal El-Nahhas 20 October 2020

Role of Employers Organization

 Institutional Factors – State policy, labour

27 © Dr. Parikshit Joshi 20 October 2020

 Technological Factors – introduction of new and

DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND

Dr. Kamal El-Nahhas 20 October 2020

DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND

Dr. Kamal El-Nahhas 20 October 2020

DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND

Dr. Kamal El-Nahhas 20 October 2020

32 Dr. Kamal El-Nahhas 22/08/2013

33 Dr. Kamal El-Nahhas 22/08/2013

34 Dr. Kamal El-Nahhas 22/08/2013

35` Dr. Kamal El-Nahhas 20 October 2020

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