Being managed by professionals does not mean professional management!

Industrial RelationsArun Kumar Davay

Industrial Relations
Industry: Sec2(j) It means any business, trade, undertaking, manufacturing or calling of employers & includes any calling, service, employment, handicraft or industrial occupation or avocation of workmen. -The Industrial Dispute Act 1947

Traditional
MasterMaster-Servant Illiterate Not Conscious Ill Motivated

Present
Human Relations Educated Aware, Informed Willing, Motivated

Management
Traditional Authoritative Present Collaborative

Autocratic Paternalistic Prerogative

Democractic Mutuality Restrictive

What is Industrial Relations ?

An Act or Art of Controlling Human Resources in Employment. Also referred as Labour Relations, Legal Relations, etc., Two Inseparable Limbs Interest apparently Conflict but Complementary.

Definition
Relations between the management of an industrial enterprise and its employees.

Process by which people and their organization interact at the place of work to establish the terms and conditions of employment

Employee

Actors in IR
Management Government

Objectives of Industrial Relations bjectives

1. Congenial Labour - Management relations 2.Enhance economic status of the workers 3.Regulate the production by minimizing industrial conflict 4.Socialize industries by making government as employer 5.Workers to have a say in management &decision making 6.Encourage &develop trade unions 7.Avoid industrial conflict consequences 8.Industrial democracy

Functions of IR
1. Communication is to be established between workers and the management in order to bridge the traditional gulf between the two. 2.To establish a rapport between managers and the managed. 3.To ensure creative contribution of trade unions to avoid industrial conflicts, to safeguard the interest of workers on the one hand and the management on the other hand, to avoid unhealthy, unethical atmosphere in an industry. 4.To lay down considerations which may promote understanding, creativity and co-operation to raise industrial productivity, to ensure better workers participation?

Importance of Industrial Relations

Uninterrupted Production Reduction in Industrial Disputes High Morale Mental Revolution New Programme Reduced Wastage

Success of Industrial Relations

1.Top Management support 2.Sound Personnel policies 3.Adequate practice should be developed by professionals 4.Detailed supervisory training 5.Follow up results

Purpose of HR in IR
1. Human resource management attracts, develops, and maintains a talented workforce. 2. Government legislation protects workers against employment discrimination. 3. Employee rights and other issues complicate the legal environment of work. 4. Labor relations and collective bargaining are closely governed by law.

Legal Aspects of Industrial Relations

1. Discrimination: When someone is denied a job or position for non job related reasons 2. Equal Employment Opportunity: The right to employment and advancement without regard to race, religion, sex, color or national origin 3.Affirmative Action: An effort to give preference in employment to women or other minorities; Employment criteria justified by capacity to perform a job 4. Comparable Worth: Persons performing jobs of similar worth should receive comparable pay

Legal Aspects of Industrial Relations

5. Bona-fide Occupational Qualifications: Employment criteria justified by capacity to perform a job 6. Workplace Privacy: The right to privacy while at work 7. Independent Contractors: Hired on temporary contracts and are not part of the organizations permanent work force 8. Labor Union: An organization that deals with employers on the workers collective behalf 9. Labor Contract: A formal agreement between a union and employer about the terms of work for union members

Industrial Unrest
Causes for Industrial Unrest: Workers Seeking More Wages Justly or Unjustly Better Working Conditions Adequate Housing etc., Political Sentiments Economic Crisis

Industrial Unrest
If Relations between Management and Labour gets strained, Labour protest takes any of the following forms: 1. Flash Strike or Sudden Walk out: May just become a labour meeting where a Memorandum is passed and handed over to the Management for consideration and meeting. May disperse and resume work soon after. 2. Tools Down: Labour stops work for a period but does not leave their place of work. Production suffers.

Industrial Unrest
3. Slow Down: Workers do not meet the given production targets. The whole or the part of facilities may be affected. 4. Gherao: Labour ceases work. Blocks all routes by human barrier to the workplace/Management Personnel. Human pressure is exerted till the demands are met. The offence commited is Wrongful confinement 5. Strike: Last resort of the Labour when negotiations have not yielded any results.