Professional Documents
Culture Documents
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of
individuals) is (are) engaged”. By “relations” we mean “the relationships that exist
within the industry between the employer and his workmen.”. The term industrial
relations explains the relationship between employees and management which stem
directly or indirectly from union-employer relationship.
The concept of industrial relation has been defined using various terminologies , but in
the strictest sense , it is essentially the relatinship between the management and
labour. The full concept of industrial relation is organizationand practiceof multi –
pronged relationship -between labour and management , unions and labour , unions
and manangement in an industry.
Dale Yoder defines it as a “ whole field of relationship that exist because of the
necessary collaboration of men and women in the employement process of an industry
.”
9. Educating Workers:
Because of illiteracy, ignorance workers are unable to judge the specific situation,
issues and give consent or agree to take recourse to action which is unjustified,
unwarranted and uncalled for. IRs’ objective is to educate the workforce, to develop
their skill, ability to perceive the situation rightly, to make them aware of their
strength and weaknesses so that they can negotiate their grievances, issues, problems
with their boss and can resolve them.
1. Unitary Perspective
Staffing policies should try to unify effort, inspire and motivate employees.
The organization’s wider objectives should be properly communicated and discussed
with staff.
Reward systems should be so designed as to foster to secure loyalty and commitment.
Line managers should take ownership of their team/staffing responsibilities.
2. Pluralistic Perspective
In pluralism the organization is perceived as being made up of powerful and divergent
sub-groups – management and trade unions. This approach sees conflicts of interest
and disagreements between managers and workers over the distribution of profits as
normal and inescapable. Consequently, the role of management would lean less
towards enforcing and controlling and more toward persuasion and co-
ordination. Trade unions are deemed as legitimate representatives of employees.
Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing
and if managed could in fact be channeled towards evolution and positive change.
Realistic managers should accept conflict to occur. There is a greater propensity for
conflict rather than harmony. They should anticipate and resolve this by securing
agreed procedures for settling disputes.
The firm should have industrial relations and personnel specialists who advise
managers and provide specialist services in respect of staffing and matters relating to
union consultation and negotiation.
Independent external arbitrators should be used to assist in the resolution of disputes.
Union recognition should be encouraged and union representatives given scope to
carry out their representative duties
Comprehensive collective agreements should be negotiated with unions
3. Marxist Perspective
Marxist perspective is also called radical perspective. This perspective is to reveal the
nature of the capitalist society. It thinks that workplace relations are against the history. It
recognizes inequalities in power in the employment relationship and in wider society as a
whole. Consequently, conflict is perceived as an inevitable result. Whats more, a natural
response regarding workers against the capitalism exploitation is seen as trade unions.
This view of industrial relations is a by product of a theory of capitalist society and social
change. Marx argued that:
Weakness and contradiction inherent in the capitalist system would result in revolution
and the ascendancy of socialism over capitalism.
Capitalism would foster monopolies.
Wages (costs to the capitalist) would be minimized to a subsistence level.
Capitalists and workers would compete/be in contention to win ground and establish their
constant win-lose struggles would be evident.
This perspective focuses on the fundamental division of interest between capital and
labor, and sees workplace relations against this background. It is concerned with the
structure and nature of society and assumes that the conflict in employment relationship is
reflective of the structure of the society. Conflict is therefore seen as inevitable and trade
unions are a natural response of workers to their exploitation by capital.
CONCEPT
The concept of industrial relations means the relationship between the employees and
management in the day to day working of an industry. The Indian IR scenario has
been rapidly changing with the opening up of the liberalized economy and the
subsequent inflow of Multinational Corporations (MNCs).
There has been a major effect on the macro economic aspect on the structure of the
labour market (productivity, employment and wages), also on the structure of IR
(number of unions, collective bargaining, labour legislation, industrial conflict and
state intervention).These transformations have brought in changes on the growth
pattern of the economy.
The meaning has become more specific and restricted. Industrial relations pertains to
the study and practice of collective bargaining, trade unionism, and labor management
relations, while human resource management is a separate, largely distinct field that
deals with nonunion employment relationships and the personnel practices and
policies of employers.
1. Preservation and promotion of economic interest of workers along with social interest
2. Peace and productivity goes hand in hand hence. attempt to reduce industrial dispute
and promote peace is a necessity.
3. Employer employee relation should be made healthy and growing
4. Running of the industry, day to day work should be made more democratic with
increasing workers participation
5. Producing products at a very competitive price so that country can promote export and
our economy can improve.
6. Bringing mental revolution in management.
IMPORTANCE
Industrial relations are human relations in industry. The importance of the
human factor in an industrial organisation is beyond question. Better management of
industrial relations in an industry is a sine qua non for the success of the industrial
concern. It results in industrial peace which is essential for the countries, particularly
for India, where the economy is being geared in a planned way to ameliorate the lot of
the masses.
Interacting between management and workers and between worker and worker are
regular features in industry and these constitute industrial relations. So, the importance
of industrial relations in industry is self-evident and does not need any elucidation.
Industrial relations are the key for increased productivity in industrial establishments.
For example, at the Alwar plant of Eicher Tractors, productivity went up from 32 per
cent between 1994 and 1996 to 38 per cent in 1997. The production of engine
cylinders has gone up from 29, 390 (in 1995-96) to 32, 501 (in 1996-97).This increase
has been possible because of peaceful industrial relations.
SCOPE
The scope of industrial relations seems to be very wide. It includes the
establishment and maintenance of good personnel relations in the industry,
ensuring manpower development, establishing a closer contact between persons
connected with the industry and that between the management and the workers,
creating a sense of belonging in the minds of management, creating a mutual
affection, responsibility and regard for each other, stimulating production as well
as industrial and economic development, establishing a good industrial climate and
peace and ultimately maximising social welfare.
(b) Collective relations between trade unions and management. It is called union-
management relations.
(c) Collective relations among trade unions, employers' associations and government.
ASPECTS
In an industrial unit different people are working. They are employers,
executives, supervisors and workers. They inter-act and create a relationship
called industrial relations. Working at these people together affect not only
labour relations but social, political and economic life.
CAUSES
Economic Causes
Organizational Causes
Social Causes
Psychological Causes
Political Causes
ECONOMIC CAUSES
Poor wages and poor working conditions are the main reasons for unhealthy relations
among management and labour. Unauthorized deductions from wages, lack of fringe
benefits, absence of promotional opportunities, dissatisfaction with job evaluation and
performance appraisal methods, faulty incentive schemes are other economic causes.
Organisational Causes
Faulty communication system, dilution of supervision and command, non-recognition
of trade unions, unfair practices, violation of collective agreements and standing
orders and labour laws are the organisational causes of poor relations in industry.
Social Causes
Uninteresting nature of work is the main social cause. Factory system and
specialisation have made worker a subordinate to the machine. Worker has lost sense
of pride and satisfaction in the job. Tensions and conflicts in society break up of joint
family system, growing intolerance have also led to poor employer-employee
relations. Dissatisfaction with job and personal life culminates into industrial conflicts
Psychological Causes
Lack of job security, poor organisational culture, non-recognition of merit and
performance, authoritative administration and poor interpersonal relations are the
psychological reasons for unsatisfactory employer-employee relations
Political Causes
The political nature of trade unions, multiple unions and inter-union rivalry weaken
trade union movement. In the absence of strong and responsible trade unions,
collective bargaining becomes ineffective. The union‘s status is reduced to a mere
strike committee.
EFFECTS OF POOR INDUSTRIAL RELATIONS
MEANING
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.
It is formed for securing certain economic (like better wages, better working and
living conditions), social (such as educational, recreational, medical, respect for
individual) benefits to members. Collective strength offers a sort of insurance cover to
members to fight against irrational, arbitrary and illegal actions of employers.
Members can share their feelings, exchange notes and fight the employer quite effectively
whenever he goes off the track.
CONCEPT
A trade union is an association of employees for the primary purpose of effecting their
employers’ decisions about their better working conditions of employment. The basic
objective of a trade union is, therefore, to represent the interest of its members. It
seeks to get benefits for them. Trade unions can also be regarded as an institution for
overcoming managerial dictatorship to strengthen individual worker and to provide
him an opportunity for regulating and improving the conditions under which he has to
work.
Trade unions play an important role in preventing the exploitation of employees in the
hands of management. Over the years, the relationship between management and
workers has changed from master and servant to employer and employee. The hire
and fire policy of the management can be dispensed with the intervention of trade
unions, who fight for the rights of workers.
Without the formation of trade unions, employees can get the rights at their individual
level, because their bargaining position tends to be weak and they stand at the lower
ebb in the organisation. With the unionism, they can collectively press for their
genuine demands, and improve their position in the society.
CHARACTERSTICS
1. Association of employees:
2. Voluntary Association:
An employee joins the trade union out of his free will. A person cannot be compelled
to join a union.
3. Permanent Body:
A trade union is usually a permanent body. Members may come and go but the trade
union remains.
4. Common Interest:
The member of a trade union have certain matters of common interest-job security,
better pay and working conditions and so on, which bring them together.
5. Collective Action:
Even when an individual employee has any grievance over certain management
decisions, the matter is sorted out by the intervention of the trade union Employees are
able to initiate collective action to solve any problem concerning any particular
employee or all the employees.
FEATURES
The main features of a trade union are as under:
9. Legislations – Trade union lobby with political parties and political readers to
secure legislative protection for workers from the government.
10. Representation – Trade union represents working class in various national
and international forums such as Indian labour conference and international labour
organisation.
11. Advice – A trade union may provide advice and information to management
on human resource policies and practices. Unions also impress upon workers the
need to exercise restraints in the use of their rights. Unions assist employers in
maintaining discipline and in increasing productivity.
14. Extra-Mural Functions – Trade unions also undertake functions which are
required for the welfare of their members. These functions include provisions of
educational, recreational and housing facilities.
The unions raise funds in the form of subscription from members and spend them
for the welfare of workers.
In case of untimely deaths, unions provide financial help to the member of the
decreased family. Extramural functions are very important as they inculcate the
spirit of co-operation against members.
15. Social Functions – These functions include carrying out social service
activities, discharging social responsibility through various section of the society
like educating the customers.
Explain Essentials of a Successful Trade Union .
A trade union should have integrity and honestly in dealing with financial matters.
There should not be any room for misappropriation of funds. A trade union should
use its economic power in a careful and responsible way. It should be aware of the
existing realities in terms of the opportunities it has to bring about an improvement
in the leaving standards of labour. A trade union should be a democratic agent
between workers and management.
A trade union should not be contented with protecting and improving wages and
conditions of work of their members but should be concerned with the interest of
workers, their emotional disturbances, their martial conflicts, their personal
adjustment problems. The trade unions should assist in progressively raising the
standard of living of workers and promote their personality development through
educational programmes.
Most importantly, trade unions should maintain industrial harmony and peace, and
battle fruitfully with the employers and if necessary with the State at the bargaining
table so that the employers do not victimize the workers. Trade unions should be
pluralist in character and pragmatic in their approach and should concentrate on the
welfare of the members and society.
Necessary conditions for making trade unions more effective are as follows
i. Compulsory Membership:
A trade union is based on its organizational strength. The trade union should
possess maximum membership in order to consolidate itself as an organization. In
order to make trade unions effective instruments of labor welfare, it is important
that all the workers should become its members compulsorily. A nominal
membership will not be working in this area. To make a trade union more
effective, all the workers should be actively associated with the work of the trade
union.
Spirit of Unity:
A trade union is based on the spirit of unity and sacrifice among its members.
Trade unions are able to function only on the strength of unity. For solving any
problem, unity among the members of the trade union is very important.
Capable Leadership:
Capable and efficient leaders are required for the successful working of the trade
unions. A person who is dedicated and thinks about the welfare of the workers
should lead a trade union. Few trade unions are quite selfish and use the workers
for their own selfish ends.
Thus, it is very important that the leadership of the trade unions should be given to
those who are genuine and selfless and interested in the welfare of the workers.
The leader of the trade union should himself be a worker, because only a worker
can understand the problems of the workers.
In this context, it is necessary that a trade union should adopt a practical attitude to
all the problems and act only if the problem is practical and if there is a possibility
to meet the actual conditions. Unreasonable demands will create conflicts and
disharmony.
Democratic Outlook:
The democratic structure in a trade union contributes to its successful working. By
democratic structure we mean that the opinion of each and every member should
be taken into account. While exercising the privilege of vote in trade union affairs,
the member develops a sense of dignity and makes a mark of his importance. This
helps to keep up his morale and loyalty. It is always preferred that the workers
themselves should choose the leaders of the trade unions democratically.
Freedom from Politics:
Political interference greatly undermines the importance of trade unions.
Sometimes, the union leaders forget their main aims and indulge in politics. These
kinds of leaders do not benefit the workers rather harm their interests.