Industrial Relations and Labour Law

Module 1: Industrial Relations

● The term “industrial relations” denotes the relation between management and Labour. It
covers all sorts of relationship , individual and collective and hence the orbit of what we
are accustomed to call labour law comprehends matters of industrial disputes , of
collective agreements as well is of job security, in short anything that can arise between
the managers and those subject to managerial power.

● In the opinion of V. B. Singh “Industrial relations are an integral aspect of social relations
arising out of employer-employee interaction in modern industries which are regulated by
the State in varying degrees, in conjunction with organised social forces and influenced
by the existing institutions. This involves a study of the State, the legal system, and the
workers’ and employers’ organizations at the institutional level; and of the patterns of
industrial organisation (including management), capital structure (including technology),
compensation of the labour force, and a study of market forces all at the economic level”
.
● 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”.

● IR can now safely be defined as a coin having two faces: co- operation and conflict. This
relationship undergoes change from thesis to antithesis and then to synthesis. Thus, the
relationship starting with co-operation soon changes into conflict and after its resolution
again changes into cooperation. This changing process becomes a continuous feature in
industrial system and makes IR concept as dynamic and evolving one.

Scope of Industrial Relations:

Based on above definitions of IR, the scope of IR can easily been delineated as follows:

● Labour relations, i.e., relations between labour union and management.

● Employer-employee relations i.e. relations between management and employees.
● The role of various parties’ viz., employers, employees, and state in maintaining
industrial relations.
 ● The mechanism of handling conflicts between employers and employees, in case
conflicts arise.

Objectives of Industrial Relations:

The primary objective of industrial relations is to maintain and develop good and healthy
relations between employees and employers or operatives and management. The same is sub-
divided into other objectives.

Thus, the objectives of IR are designed to:

● Establish and foster sound relationship between workers and management by

safeguarding their interests.
● Avoid industrial conflicts and strikes by developing mutuality among the interests of
concerned parties.
● Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic
status of workers.
● Provide an opportunity to the workers to participate in management and decision making
process.
● Raise productivity in the organisation to curb the employee turnover and absenteeism.
● avoid unnecessary interference of the government, as far as possible and practicable, in
the matters of relationship between workers and management.
● Establish and nurse industrial democracy based on labour partnership in the sharing of
profits and of managerial decisions.
History of Industrial Relations

● Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by cresaing free labour markets and large-scale industrial
organizations with thousands of wage workers.
● As society wrestled with these massive economic and social changes, labour problems
arose. Low wages, long working hours, monotonous and dangerous work, and abusive
supervisory practices led to high employee turnover, violent strikes, and the threat of
social instability.
● Intellectually, industrial relations was formed at the end of the 19th century as a middle
ground between classical economics and Marxism, with Sidney Webb and Beatrice
Webb's Industrial Democracy (1897) being a key intellectual work. Industrial relations
thus rejected the classical econ.
● Institutionally, industrial relations was founded by John R. Commons when he created
the first academic industrial relations program at the University of Wisconsin in 1920.
Another scholarly pioneer in industrial relations and labour research was Robert F.
Hoxie.
● Early financial support for the field came from John D. Rockefeller Jr. who supported
progressive labour–management relations in the aftermath of the bloody strike at a
Rockefeller-owned coal mine in Colorado. In Britain, another progressive industrialist,
Montague Burton, endowed chairs in industrial relations at the universities of Leeds,
Cardiff, and Cambridge in 1929–1930.
● Beginning in the early 1930s there was a rapid increase in membership of trade unions in
the United States, and with that came frequent and sometimes violent labour–
management conflict.During the Second World War these were suppressed by the
arbitration powers of the National War Labor Board.
● However, as the Second World War drew to a close and in anticipation of a renewal of
labour–management conflict after the war, there was a wave of creations of new
 academic institutes and degree programs that sought to analyse such conflicts and the role
of collective bargaining.[21]
● The most known of these was the Cornell University School of Industrial and Labor
Relations, founded in 1945. But counting various forms, there were over seventy-five
others. These included the Yale Labor and Management Center, directed by E. Wight
Bakke, which began in 1945.An influential industrial relations scholar in the 1940s and
1950s was Neil W. Chamberlain at Yale and Columbia universities.
● Industrial relations was formed with a strong problem-solving orientation that rejected
both the classical economists' laissez-faire solutions to labour problems and the Marxist
solution of class revolution. It is this approach that underlies the New Deal legislation in
the United States, such as the National Labor Relations Act and the Fair Labor Standards
Act.
● By the early 21st century, the academic field of industrial relations was often described as
being in crisis.In academia, its traditional positions are threatened on one side by the
dominance of mainstream economics and organizational behaviour, and on the other by
postmodernism.
● In policy-making circles, the industrial relations emphasis on institutional intervention is
trumped by a neoliberal emphasis on the laissez-faire promotion of free markets. In
practice, trade unions are declining and fewer companies have industrial relations
functions.
● The number of academic programs in industrial relations is therefore shrinking, while
fields such as human resource management and organizational behaviour grow. The
importance of this work, however, is stronger than ever, and the lessons of industrial
relations remain vital. The challenge for industrial relations is to re-establish these
connections with the broader academic, policy, and business worlds.
Approaches to Industrial Relations

UNITARY PLURALISTIC MARXIST

Assumptions ● Capitalist ● Post ● Capitalist

society capitalistic ● Division bet.
● Integrated society Labour and
group of ● Coalescence capital
people of sectional ● Imbalance
● Common groups and
values, ● different inequality in
interests and values, society
objectives interests and (power,
objectives economic,
wealth etc)

Nature of conflict Single authority and ● Competitive Inherent in

loyalty structure authority and economic and social
Management’s loyalty systems
irrational fear structures
(formal and
informal)
● Inevitable,
rational and
structural

Resolution of Coercion Compromise and Change society

conflict agreement

Role of trade unions ● Intrusion ● Legitimate ● Employeeres

from outside ● Internal and ponse to
● Historical integral to capitalism
anachronism work ● Expression
● Only organisation and
accepted in ● Accepted mobilisation
economic both of class and
relations(if economic and consciousness
forced) managerial ● Develop
relations political
awareness
and activity
● Unitary Approach: The unitary approach is based on the strong argument that there is
only one source of authority i.e., the management, which owns and controls the dynamics
of decision making in issues relating to negotiation and bargaining.

Under unitary approach, industrial relations are grounded in mutual cooperation,

individual treatment, team-work, and shared goals.

The underlying assumption is that everyone benefits when the focus is on common
interest and promotion of harmony. Conflict in the form of strikes is not only regarded as
necessary but destructive.

Advocates of the unitary approach emphasize on a reactive industrial relations strategy.

They seek direct negotiations with employees. Participation of government, tribunals and
unions is not sought or is seen as being necessary for achieving harmonious employee
relations. The unitary approach is being criticized as a tool for seducing employees away
from unionism and socialism. It is also criticized as manipulative and exploitative.

● Pluralistic Approach: The pluralistic approach totally departs from the unitary approach
and assumes that the organization is composed of individuals who form distinct groups
with their own set of aims, objectives, leadership styles, and value propositions.

The organization is multi structured and there will be continued tension due to conflicts
within and between the various sectional groups. In contrast to the unitary approach, the
pluralistic approach considers conflict between management and employees as rational
and inevitable.

The pluralistic approach perceives:

i. Organizations as coalitions of competing interests, where the role of the management

is to mediate amongst the different interest groups.

ii. Trade unions as legitimate representatives of employee interests.

iii. Stability in industrial relations as the product of concessions and compromises

between management and unions.
 The theories on pluralism were evolved in the mid-sixties and early seventies when
England witnessed a resurgence of industrial conflicts. However, the recent theories of
pluralism emanate from British scholars, and in particular, from Flanders and
Fox.According to pluralists, industrial conflict is inevitable and it needs to be contained
within the social mechanism of collective bargaining, conciliation, and arbitration.

● Marxist Approach: Also known as the ‘Radical Perspective’, the Marxist approach is
based on the proposition that the economic activities of production, manufacturing, and
distribution are majorly governed by the objective of profit.

Marxists, like the pluralists, regard conflict between employers and employees as
inevitable. However, pluralists believe that the conflict is inevitable in all organizations.
Marxists see it as a product of the capitalist society. Adversarial relations in the
workplace are simple one aspect of class conflict.

The Marxist approach, thus, focuses on the type of society in which an organization
functions. Conflict arises not only because of competing interests within the organization,
but because of the division within society between those who won or manage the means
of production and those who have only their labour to offer. Industrial conflict is, thus,
seen as being synonymous with political and social unrest.

The Marxist approach argues that for social change to take place, class conflict is
required. Social change initiates strong reactions from the worker class and bridges the
gap between the economically settled owners of factors of production and the
economically dependent worker class. This approach views pluralism as unreal and
considers industrial disputes and class conflicts as inevitable for the circular functioning
of an industry.

To Marxists, the pluralist approach is supportive of capitalism, the unitary approach

anathema. Consequently, enterprise bargaining, employee participation, cooperative work
culture, and the like which help usher in cordial industrial relations are not acceptable to
Marxists. Such initiatives are regarded as nothing more than sophisticated management
 techniques designed to reinforce management control and the continuation of the
capitalist system.

● Human Resource Management Approach: The term, human resource management

(HRM) has become increasingly used in the literature of personnel/industrial
relations. The term has been applied to a diverse range of management strategies
and, indeed, sometimes used simply as a more modern, and therefore more
acceptable, term for personnel or industrial relations management.

Some of the components of human resource management are – (a) human

resource organisation; (b) human resource planning; (c) human resource systems;
(d) human resource development; (e) human resource relationships; (f) human
resource utilisation; (g) human resource accounting; and (h) human resource
audit.

This approach emphasises individualism and the direct relationship between

management and its employees. Therefore, it questions the collective regulation
basis of traditional industrial relations.

M K Gandhi – The Gandhian Approach: Gandhiji can be called one of the greatest labour
leaders of modern India. His approach to labour problems was completely new and refreshingly
human. He held definite views regarding fixation and regulation of wages, organisation and
functions of trade unions, necessity and desirability of collective bargaining, use and abuse of
strikes, labour indiscipline, and workers participation in management, conditions of work and
living, and duties of workers. The Ahmedabad Textile Labour Association, a unique and
successful experiment in Gandhian trade unionism, implemented many of his ideas. Gandhiji had
immense faith in the goodness of man and he believed that many of the evils of the modern
world have been brought about by wrong systems and not by wrong individuals. He insisted on
recognising each individual worker as a human being. He believed in nonviolent communism,
going so far as to say that “if communism comes without any violence, it would be welcome.”
Gandhiji laid down certain conditions for a successful strike. These are – (a) the cause of the
strike must be just and there should be no strike without a grievance; (b) there should be no
violence; and (c) non-strikers or “blacklegs” should never be molested. He was not against
strikes but pleaded that they should be the last weapon in the armoury of industrial workers and
hence, should not be resorted to unless all peaceful and constitutional methods of negotiations,
conciliation and arbitration are exhausted. His concept of trusteeship is a significant contribution
in the sphere of industrial relations. According to him, employers should not regard themselves
as sole owners of mills and factories of which they may be the legal owners. They should regard
themselves only as trustees, or co-owners. He also appealed to the workers to behave as trustees,
not to regard the mill and machinery as belonging to the exploiting agents but to regard them as
their own, protect them and put to the best use they can. In short, the theory of trusteeship is
based on the view that all forms of property and human accomplishments are gifts of nature and
as such, they belong not to any one individual but to society. Thus, the trusteeship system is
totally different from other contemporary labour relations systems. It aimed at achieving
economic equality and the material advancement of the “havenots” in a capitalist society by non-
violent means. Gandhiji realised that relations between labour and management can either be a
powerful stimulus to economic and social progress or an important factor in economic and social
stagnation. According to him, industrial peace was an essential condition not only for the growth
and development of the industry itself, but also in a great measure, for the improvement in the
conditions of work and wages. At the same time, he not only endorsed the workers’ right to
adopt the method of collective bargaining but also actively supported it. He advocated voluntary
arbitration and mutual settlement of disputes. He also pleaded for perfect understanding between
capital and labour, mutual respect, recognition of equality, and strong labour organisation as the
essential factors for happy and constructive industrial relations. For him, means and ends are
equally important.

Systems Approach

John Dunlop gave the systems theory of industrial relations in the year 1958. He believed that
every human being belongs to a continuous but independent social system culture which is
responsible for framing his or her actions, behaviour and role.

The industrial relations system was based on three sets of different variables:
 1. Actors: By actors here we mean that the individuals or parties involved in the
process of developing sound industrial relations. This variable is denoted by ‘A’.

2. Contexts: The contexts refer to the setup in which the actors perform the given
tasks. It includes the industry markets (M), technologies (T) and the power
distribution in the organization and labour unions(P).

3. Ideology: The similar ideas, mentality or beliefs shared by the actors helps to blend
the system. It can be expressed by the initial (I)

Based on these variables, the following formula was derived by Dunlop:

John Dunlop’s Systems Approach Formula:

This formula represents that the industrial relations system can be seen as a joint function of all
the elements mentioned above.

Grievance Handling

A grievance is any dissatisfaction or feeling of injustice having connection with one’s

employment situation which is brought to the attention of management. Speaking
broadly, a grievance is any dissatisfaction that adversely affects organizational relations
and productivity.

Causes of Grievances:
1. Economic: Employees may demand for individual wage adjustments. They may feel
that they are paid less when compared to others. For example, late bonus, payments,
adjustments to overtime pay, perceived inequalities in treatment, claims for equal pay,
and appeals against performance- related pay awards.

2. Work environment:It may be undesirable or unsatisfactory conditions of work. For

example, light, space, heat, or poor physical conditions of workplace, defective tools and
equipment, poor quality of material, unfair rules, and lack of recognition.

3. Supervision:It may be objections to the general methods of supervision related to the

attitudes of the supervisor towards the employee such as perceived notions of bias,
favouritism, nepotism, caste affiliations and regional feelings.
4. Organizational change:Any change in the organizational policies can result in
grievances. For example, the implementation of revised company policies or new
working practices.

5. Employee relations:Employees are unable to adjust with their colleagues, suffer from
feelings of neglect and victimization and become an object of ridicule and humiliation, or
other inter- employee disputes.

Effects of Grievance

1. On the production: a. Low quality of production

b. Low productivity

c. Increase in the wastage of material, spoilage/leakage of machinery

d. Increase in the cost of production per unit

2. On the employees: Increase in the rate of absenteeism and turnover

b. Reduction in the level of commitment, sincerity and punctuality

c. Increase in the incidence of accidents

d. Reduction in the level of employee morale.

3. On the managers: a. Strained superior-subordinate relations.

b. Increase in the degree of supervision and control.

c. Increase in indiscipline cases

d. Increase in unrest and thereby machinery to maintain industrial peace

How to deal with grievances at work?

Disconcerted employees can pull down the productivity of an organisation. Hence, it is

important for HRs to build a system of hearing and redressing employee grievances. It

can be done through the following simple steps:

● Create a mechanism: HRs can use a well-designed HRMS to build a strong

system of gathering and processing employee grievances.

● Listen more than talk: While hearing the grievances, it is a good idea to practice

deep listening and empathise with the griever to fully understand what they are
unhappy about.
● Inquire and investigate: Once you have the employees’ point of view on the

matter, set in motion your own inquiry to understand all the facets of the issue and
figure out the root cause.
● Hold a formal meeting: Call in all the relevant parties and ask the employee to

present any evidence to back up their issue. You can also ask them about how they
woud like the issue to be resolved
● Decide and act: Once you reach a conclusion, take a decision you think is best

and then act on the resolution.

● Set up and communicate the appeal process: Have a system in place that allows

the employee to formally appeal in case they are unhappy with the resolution.
Clearly communicate the rules for the same.
● Review the situation: Decide on a relevant time interval and review the situation

to understand if any further intervention is required. Act accordingly.

 ● Analyse and plan ahead: Retrospect and gather insights about different issues

and plan to prevent the same problems in the future.

OR

The manager should immediately identify all grievances and must take appropriate steps to
eliminate the causes of such grievances so that the employees remain loyal and committed to
their work. Effective grievance management is an essential part of personnel management. The
managers should adopt the following approach to manage grievance effectively-

1. Quick action- As soon as the grievance arises, it should be identified and resolved.
Training must be given to the managers to effectively and timely manage a grievance.
This will lower the detrimental effects of grievance on the employees and their
performance.
2. Acknowledging grievance- The manager must acknowledge the grievance put forward
by the employee as manifestation of true and real feelings of the employees.
Acknowledgement by the manager implies that the manager is eager to look into the
complaint impartially and without any bias. This will create a conducive work
environment with instances of grievance reduced.
3. Gathering facts- The managers should gather appropriate and sufficient facts explaining
the grievance’s nature. A record of such facts must be maintained so that these can be
used in later stage of grievance redressal.
4. Examining the causes of grievance- The actual cause of grievance should be identified.
Accordingly remedial actions should be taken to prevent repetition of the grievance.
5. Decisioning- After identifying the causes of grievance, alternative course of actions
should be thought of to manage the grievance. The effect of each course of action on the
existing and future management policies and procedure should be analyzed and
accordingly decision should be taken by the manager.
6. Execution and review- The manager should execute the decision quickly, ignoring the
fact, that it may or may not hurt the employees concerned. After implementing the
 decision, a follow-up must be there to ensure that the grievance has been resolved
completely and adequately.

An effective grievance procedure ensures an amiable work environment because it redresses the
grievance to mutual satisfaction of both the employees and the managers. It also helps the
management to frame policies and procedures acceptable to the employees. It becomes an
effective medium for the employees to express t feelings, discontent and dissatisfaction openly
and formally.

Collective Bargaining

Acc. to int. Labour org., collective bargaining is negotiations about working

conditions and terms of employment bet. an employer, a group of employers or
one or more employers’ org. On the one hand and one or more representative
workers’ organizations on the other, with a view to reaching agreements.

According to Beach, “Collective Bargaining is concerned with the relations between

unions reporting employees and employers (or their representatives).

It involves the process of union organization of employees, negotiations administration

and interpretation of collective agreements concerning wages, hours of work and other
conditions of employees arguing in concerted economic actions dispute settlement
procedures”.
Collective Bargaining Involves:

(i) Negotiations

(ii) Drafting

(iii) Administration

(iv) Interpretation of documents written by employers, employees and the union

representatives

(v) Organizational Trade Unions with open mind.

Forms of Collective Bargaining:

The working of collective bargaining assumes various forms. In the first place, bargaining may
be between the single employer and the single union, this is known as single plant bargaining.
This form prevails in the United States as well as in India.

Secondly, the bargaining may be between a single firm having several plants and workers
employed in all those plants. This form is called multiple plants bargaining where workers
bargain with the common employer through different unions.

Thirdly, instead of a separate union bargaining with separate employer, all the unions belonging
to the same industry bargain through their federation with the employer’s federation of that
industry. This is known as multiple employer bargaining which is possible both at the local and
regional levels. Instances in India of this industry-wide bargaining are found in the textile
industry.
Charac of collective bargaining

1. Same as features
2. “
3. Flexible and not static.
4. Dynamic concept as it is growing, expanding and changing in view of the attitudes,
opinions and perceptions of both the parties.
5. Ensures democracy at workplace
6. Not a competitive process rather a complementary process.

IMP. OF COLLECTIVE BARGAINING

1. Method for regulating the conditions for employment

2. Leads to better understanding
3. Flexible means of adjusting wages and other conditions
4. Helps industrial jurisprudence
5. Better implementation of decisions
6. Works mutually
7. Increases economic strength of both union and management
8. Helps avoiding industrial disputes
9. Helps preventing work stoppage

Main Features of Collective Bargaining

It is a Group Action: Collective bargaining is a group action as opposed to individual

action. Both the parties of settlement are represented by their groups. Employer is
represented by its delegates and, on the other side; employees are represented by their
trade union.

2. It is a Continuous Process:Collective bargaining is a continuous process and does not

end with one agreement. It provides a mechanism for continuing and organised
relationship between management and trade union. It is a process that goes on for 365
days of the year.

3. It is a Bipartite Process:Collective bargaining is a two party process. Both the parties

—employers and employees— collectively take some action. There is no intervention of
any third party. It is mutual given-and-take rather than take-it-or-leave-it method of
arriving at the settlement of a dispute.

There are three distinct steps in the process of collective bargaining:

1. The Creation of the Trade Agreement:In negotiating the contract, a union and
management present their demands to each other, compromise their differences, and
agree on the conditions under which the workers are to be employed for the duration of
the contract. The coverage of collective bargaining is very uneven; in some industries
almost all the workers are under agreement, while in others only a small portion of the
employees of the firms are covered by the agreement.

The negotiating process is the part of collective bargaining more likely to make headline
news and attract public attention; wage increases are announced, ominous predictions
about price increase are reduction in employment are made.

2. The Interpretation of the Agreement:The administrative process is the day-to-day

application of the provisions of the contract to the work situation. At the time of writing
the contract, it is impossible to foresee all the special problems which will arise in
applying its provisions. Sometimes, it is a matter of differing interpretations of specific
clause in the contract, sometimes; it is a question of whether the dispute is even covered
by the contract. Nevertheless, each case must somehow be settled. The spirit of the
contract should not be violated.
3. Enforcement of the Agreement:Proper and timely enforcement of the contract is very
essential for the success of collective bargaining. If a contract is enforced in such way
that it reduces or nullifies the benefits expected by the parties, it will defeat basic purpose
of collective bargaining. It may give rise to fresh industrial disputes. Hence, in the
enforcement of the contract the spirit of the contract should not be violated.

However, new contracts may be written to meet the problems involved in the previous
contract. Furthermore, as day-to-day problems are solved, they set precedents for
handling similar problems in future. Such precedents are almost as important as the
contract in controlling the working conditions. In short, collective bargaining is not an
on-and-off relationship that is kept in cold storage except when new contracts are drafted.

Q. ‘Collective bargaining in India has met with limited success’. Comment

1. Problems with unions: collective bargaining process depends on the strength of

unions. however , here are not many strong unions in India. Indian unions are
marked with multiplicity, intra- union rivalry, weak financial position and non-
recognition. Weak trade unions cannot initiate strong arguments during
negotiations. There is also usually no unanimous decision among workers to be
presented at the negotiating table.
2. Problems with the government - the government has not been taking any strong
steps for the development of collective bargaining. Instead, the government has
imposed many restrictions regarding strikes and lockouts, which turned out to be
obstacles for development of collective bargaining process.
3. Political interference - interference of political leaders in all aspects of union
matters has increased over the years. Almost all unions are associating themselves
with some political party or other. To protect their own unions, all political parties
interfere into the matters, creating inter- union rivalries.
 4. Legal problems - no adjudication is easily accessible, and as such, collective
bargaining process is losing importance
5. Attitude of the management - in India , management have negative attitude
towards unions. They do not appreciate their workers joining unions. As strong
unions are a must for the collective bargaining process, this attitude of the
management hampers the process.

Participative Management

Participative Management is a management style that requires the cooperation of personnel. It

aims to build commitment and develop initiatives within work teams. To do this, the manager
must delegate parts of his power and it's necessary that the teams decide together what solutions
to adopt.It's important to create a trustful relationship between the teams, where respect and
collaboration from everyone will be emphasized. Work valuation must also be there for this
method to work.

The different axes of Participative Management:

- Delegating power: It's necessary to give some power to the employees. They must be able to
make decisions at their level as soon as possible, while having the opportunity to refer to their
manager (for example let your employees self-plan their work and the orientations they prefer).

- Motivating teams:Participative Management should inspire employees to participate in

corporate decision-process. While setting rules and limits, the employee must be able to show his
involvement and motivation when making decisions.For example, it may be motivating for
employees to choose themselves which tasks they prefer to focus on and coordinate their work
with each other.

- Foster collaboration:Teams need to communicate and collaborate as much as possible to be

more effective.By promoting listening and understanding of the issues, teammates will build
reciprocal trust, thus benefiting the company's operations and internal development of the teams.

Module II- Labour Laws

● The Indian society is a classic case of a context in which industrial relations
connectedness is founded on a sublimating normative vision as articulated in its
Constitution
● The Constitution of India has guaranteed some Fundamental Rights to the citizens and
has also laid down certain Directive Principles of State Policy for the achievement of a
social order based on justice, liberty, equality and fraternity.
● The Constitution amply provides for the upliftment of labour by guaranteeing certain
fundamental rights to all. Article 14 lays down that the State shall not deny to any person
equality be fore the law or the equal protection of laws.
● There shall be equality of opportunity to all citizens in matters relating to employment or
appointment to any office under the State. People have the right to form associations or
unions. Traffic in human beings and forced labour and the employment of children in
factories or mines or other hazardous work is prohibited
● Article 39 accentuates the basic philosophy of idealistic socialism which is enshrined in
the Preamble of the Constitution and provides a motivation force to the Directive
Principles by laying down that the State shall direct its policy towards equal pay for both
men and women.
● Article 42 enjoins the State government to make provision for securing just and humane
conditions of work and for maternity relief.
● Article 43 makes it obligatory for the State to secure by suitable legislation or economic
organisation or in any other manner to all workers, agricultural, industrial, or otherwise,
work, a living wage, conditions of work ensuring decent standard of life and full
enjoyment of leisure and social and cultural opportunities.
● Article 43-A makes it obligatory on the State to take steps by suitable legislation or
otherwise to secure the participation of workers in the management of undertakings and
industrial establishments.
● The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and the
Maternity Benefit Act,1961 are also social security measures to help fulfil the objectives
of Directive Principles of our Constitution. The Provident Fund Scheme aimed at
providing substantial security and timely monetary assistance to industrial employees and
their families. This scheme has provided protection to employees and their dependants in
case of old age, disablement, early death of the bread-winner and in some other
contingencies.
● A scheme of Family Pensioncum-Life Assurance was introduced with a view to
providing long-term recurring financial benefit to the families in the event of the
member’s premature death while in service. The Employees’ Provident Fund
Organisation is in charge of three important schemes, viz., the Employees’ Provident
Funds Scheme, the Employees’ Family Pension Scheme, and the Employees’ Deposit
Linked Insurance Scheme.
Industrial Dispute Act 1947

● The Industrial Disputes Act, 1947 is a piece of social legislation enacted to provide for
investigation and settlement of industrial disputes and for certain other matters. It is an
Act calculated to ensure specific justice to both employers and workmen and advance the
progress of industry by bringing about harmony and cordial relationship between the
parties.
● The co-operation between capital and labour would obviously lead to more production
and that naturally helps boost national economy and progress. In achieving this goal,
industrial adjudication takes into account several principles such as the principle of
comparable wages, productivity of the trade or industry, cost of living and ability of the
industry to pay, etc. apart from several other factors.
● In deciding an industrial dispute, one of the primary objectives is and has to be the
restoration of peace and goodwill in the industry itself on fair and just basis to be
determined in the light of all relevant considerations.After the close of the First World
War, there was a great outbreak of industrial unrest. It led to the passing of the Trade
Disputes Act by the Government of India in the year 1929.

PREAMBLE AND OBJECTIVES OF THE ACT

The Preamble to the Act reads thus, "An Act to make provision for the investigation settlement
of industrial disputes and for certain other purposes."

On the basis of various judgements of the Supreme Court given from time to time
(especially Dimakuchi Tea Estate Case, 1958) is made, the principal objectives of the Act may
be stated as below:

(a)To ensure social justice to both employers and employees and advance progress of industry by
bringing about harmony and cordial relationship between the parties.
(b) To settle disputes arising between the capital and labour by peaceful methods and
through the machinery of conciliation, arbitration and if necessary, by approaching the tribunals
constituted under the Act. If disputes are not settled, it would result in strikes or lockouts and
entail dislocation of work, essential to the life of the community.

(c) To promote measures for securing and preserving amity and good relations between the
employer and workmen.
(d) To prevent illegal strikes and lockouts.

(e) To provide compensation to workmen in cases of lay-off, retrenchment and closure.

(f)To protect workmen against victimisation by the employer and to ensure termination
of industrial disputes in a peaceful manner.

g) To promote collective bargaining.

Industry: The term "Industry” has been defined under Sec. 2 (j) to mean any business, trade,
undertaking, manufacture or calling of employers and includes any calling, service, employment,
handicraft or industrial occupation or vocation of workmen.
Industrial Dispute (Section 2K):
● Industrial Dispute means any dispute or difference between employers and employer or
between employers and workmen and between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or with
the conditions of labour, of any person.
● The concept of employment involves employer-employee relationship and a contract of
employment. An employer may dismiss a man and the organisation may decline to
employ him. This matter raises a dispute as to non-employment. Reinstatement is
connected with non-employment.
● The definition is in three parts. The first part refers to the factum of a real and substantial
dispute, the second part to the parties to the dispute and the third to the subject-matter of
the dispute (Standard Vacuum Refining co. vs. Their Workmen, AIR 1960 S.C. 948).
Unless a demand is raised by a workman and rejected by the management, there cannot
be any strial dispute (W.S. Insulators of India Ltd. Vs. Industrial Tribunal, 1977-II
LLJ.225).
● In sum, the following conditions must exist for an Industrial Dispute:
(i) There must be an industry;
(ii) between the parties there must be a relationship of workmen and employer
(iii) the dispute must be connected with the employment or non-employment, terms of
employment of the conditions of labour;
(iv) the dispute must be related to a workman or any other person in whom, the group has
a direct and substantial interest; and
(v) generally speaking, the dispute should not be merely an individual dispute; it should
in some sense be a collective dispute. However, in disputes related to termination of
service (dismissal, discharge, or retrenchment), an individual can raise an industrial
dispute

Workman (Section 2(S)): "Workman" means any person (including an apprentice) employed in any
industry to do any skilled or unskilled manual, supervisory, operational, technical or clerical work for hire
or reward, whether the terms of employment be expressed or implied, and for the purposes, of any
proceeding under this Act in relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute or whose
dismissal, discharge, or retrenchment has led to that dispute, but does not include any such person:
(i) who is subject to the Army Act, 1950 (46 of 1950), or the Air Force Act, 1950
(45 of 1950), or the Navy (Discipline) Act, 1934 (34 of 1934); or

(ii) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who is being employed in a supervisory capacity, draws wages exceeding 1,600 rupees per mensem
or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in
him, functions mainly of a managerial nature.

Workmen’s Compensation Act 1923

● The Workmen Compensation Act, 1923 is an enactment that was issued by the
tral Government and was implemented by various State Governments which gives
social security to workers. This security is offered by the law for people who
work.
● The Act was formed after it was noted that laborers were getting more exposed to
danger with the use of advanced and sophisticated machinery. The common law
had it that the employer would only take up the compensation responsibility if it is
found that the industrial accident was a result of his negligence. In India, the issue
of compensating workmen after fatal and major accidents hit the road in 1884. It
was then in 1885 that the factory and mining inspectors realized that the Fatal
Accidents Act, 1885, was not enough to attend to the intended purposes.
● The State offered a hearing ear when members of the Legislative Assembly,
employers’ representatives, workers and experts in medicine and insurance
formed a committee that gave a report that led to the enacting of the Workmen’s
Compensation Act in 1923.
● The passing of the Act put a stop and offered a relief for workers who would have
gone through court processes that are often expensive, an effort to seek
compensation whenever they acquired an injury during employment.
● Objective of The Workmen Compensation Act
● The Workmen’s Compensation Act of 1923 was formed majorly to give
compensations to workmen in the event of an accident.
● The Act has it that employers should have duties and obligations that include the
welfare of workers after an injury resulting from employment in the same way
they have reserved the right to make profits. The Act aims to see workmen have a
sustainable life after an employment-related accident.
 ● The Factories Act, 1948 (Act No. 63 of 1948), as amended by the Factories
(Amendment) Act, 1987 (Act 20 of 1987), served to assist in formulating national
policies in India with respect to occupational safety and health in factories and docks in
India. It deals with various problems concerning safety, health, efficiency and well-being
of the persons at work places. It was replaced by the Occupational Safety, Health and
Working Conditions Code, 2020.
● The Act is administered by the Ministry of Labour and Employment in India through its
Directorate General Factory Advice Service & Labour Institutes (DGFASLI) and by the
State Governments through their factory inspectorates. DGFASLI advises the Central and
State Governments on administration of the Factories Act and coordinating the factory
inspection services in the States.
● The Act is applicable to any factory using power & employing 10 or more workers and if
not using power, employing 20 or more workers on any day of the preceding twelve
months, and in any part of which a manufacturing process is being carried on with the aid
of power, or is ordinarily so carried on, or whereon twenty or more workers are working,
or were working on any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or is ordinarily so
carried on; but this does not include a mine, or a mobile unit belonging to the armed
forces of the union, a railway running shed or a hotel, restaurant or eating place.

Module III Trade Unions

1. A trade union is an organisation made up of members (a membership-based

organisation) and its membership must be made up mainly of workers.
2. One of a trade union's main aims is to protect and advance the interests of its
members in the workplace.
3. Most trade unions are independent of any employer. However, trade unions try to
develop close working relationships with employers. This can sometimes take the
form of a partnership agreement between the employer and the trade union which
identifies their common interests and objectives.

Objectives and Need of Trade Union

● Wages and salaries-Wages and salaries and the most important subjects of Trade Unions.
In the organized industry, wages and benefits are determined through processes such as
 collective bargaining, wage boards, conciliation, and adjudication. Working of all these
processes deserves systematic inquiry. Union power and objective facts hopefully
influence the wage scene through these forums.
● Working conditions-Another major objective of the Trade Unions is to insure the safety
of workers. While working every worker must be provided with basic facilities like.
Drinking water, minimum working hours, paid holidays, social security, safety
equipments, lights and others.
● Personnel policies-Any personal policy of the employer with respect to promotion,
transfer and training may be challenge by Trade Unions if arbitrary.
● Discipline-Trade Unions also protect the workers from arbitrary discipline action taken
by management against any worker. No worker should be victimized by management in
the form of arbitrary transfer or suspension.
● Welfare-The main objective of the Trade Union is to work for the welfare of the workers.
This includes welfare of the family members or children of the worker.
● Employee and Employer Relations-for an industrial peace there must be harmony
between employer and employee. But due to superior power of the management
sometimes conflict arises in this situation Trade Union represent the whole group of
workers and continue negotiations with management.[10]
● Negotiating Machinery-Trade Unions may also put proposals before management, as this
policy is based on the principle of Give and Take Trade Unions protect the interest of
workers through collective bargaining.
● Safeguarding Organisational Health and the Interest of the Industry-Trade Unions also
help in achieving employee satisfaction. Trade unions also help in better industrial
relation by creating procedure to resolve the industrial dispute.
● Alone workers feel weak. Trade Union provides him a platform to join others to achieve
social objectives.

Functions of Trade Unions in India

● Collective Bargaining-Honble Supreme Court of India has defined Collective
bargaining asthe technique by which dispute as to conditions of employment is
resolved amicably by agreement rather than coercion ]in this process negotiations
and discussions take place between employer and employee in respect to working
conditions.[12]Refusing to bargain collectively is an illegal trade practice.
Collective bargaining helps to resolve the issues of workers. Collective
Bargaining is the foundation of the movement and it is in the interest of labour
that statutory recognition has been accorded to Trade Union and their capacity to
represent workmen.
● Trade Unions protect the worker from wages hike, provides job security through
peaceful measures.
● Trade Unions also help in providing financial and non-financial aid to the workers
during lock out or strike or in medical need.
 ● It has also to be borne in mind while making an agreement that the interest of the
workers who are not the members of Trade Union are also protected and the
workers who are not members of the Trade Union are also protected and the
workers are not discriminated.
Social responsibilities of trade unions include:
● promoting and maintaining national integration by reducing the number of industrial
disputes
● incorporating a sense of corporate social responsibility in workers
● achieving industrial peace

Problems of Indian Trade Unions

● Multiplicity of unions: Lack skill formation, political influence, external leadership,
recognition, inter- union rivalry etc.
● Politicization: External leadership, exploitation of political parties
● Democracy and leadership: Centralized decision making, obsession with political
ideology
● Financial position: Minimal membership subscription, legal charges are high, donations
are linked to obligations
● Management attitude: Unions are blamed for all difficulties faced by mgt., recognition
of trade union leads to bargaining
● Illiteracy and ignorance: Majority illiterate, ignorant and poor, Politicization, division
based caste and creed, external leadership

trade unions: Past, present, and future

Their past.

● Capital is concentrated social force, while the workman has only to dispose of his
working force. The contract between capital and labour can therefore never be struck on
equitable terms, equitable even in the sense of a society which places the ownership of
the material means of life and labour on one side and the vital productive energies on the
opposite side. The only social power of the workmen is their number.
● The force of numbers, however, is broken by disunion. The disunion of the workmen is
created and perpetuated by their unavoidable competition amongst themselves. Trades'
Unions originally sprang up from the spontaneous attempts of workmen at removing or at
least checking that competition, in order to conquer such terms of contract as might raise
them at least above the condition of mere slaves.
 ● The immediate object of Trades' Unions was therefore confined to everyday necessities,
to expediencies for the obstruction of the incessant encroachments of capital, in one
word, to questions of wages and time of labour.
● This activity of the Trades' Unions is not only legitimate, it is necessary. It cannot be
dispensed with so long as the present system of production lasts. On the contrary, it must
be generalised by the formation and the combination of Trades' Unions throughout all
countries.
● On the other hand, unconsciously to themselves, the Trades' Unions were forming centres
of organisation of the working class, as the mediaeval municipalities and communes did
for the middle class. If the Trades' Unions are required for the guerilla fights between
capital and labour, they are still more important as organised agencies for superseding the
very system of wages labour and capital rule.

(b) Their present.

● Too exclusively bent upon the local and immediate struggles with capital, the Trades'
Unions have not yet fully understood their power of acting against the system of wages
slavery itself. They therefore kept too much aloof from general social and political
movements.
● Of late, however, they seem to awaken to some sense of their great historical mission, as
appears, for instance, from their participation, in England, in the recent political
movement, from the enlarged views taken of their function in the United States, and from
the following resolution passed at the recent great conference of Trades' delegates at
Sheffield:
● ' That this conference, fully appreciating the efforts made by the International Association
to unite in one common bond of brotherhood the working men of all countries, most
earnestly recommend to the various societies here represented, the advisability of
becoming affiliated to that body, believing that it is essential to the progress and
prosperity of the entire working community.'

( c) Their future

● Apart from their original purposes, they must now learn to act deliberately as organising
centres of the working class in the broad interest of its complete emancipation. They must
aid every social and political movement tending in that direction.
● Considering themselves and acting as the champions and representatives of the whole
working class, they cannot fail to enlist the non-society men into their ranks. They must
look carefully after the interests of the worst paid trades, such as the agricultural
labourers, rendered powerless by exceptional circumstances.
● They must convince the world at large that their efforts, far from being narrow and
selfish, aim at the emancipation of the downtrodden millions.

HISTORY OF TRADE UNIONS IN INDIA

Pre-independence Phase
● During this period, the Indians were economically exploited, and there are three phases to
this period as outlined by R.P. Dutt in his work, India Today.
● The mercantilist phase (1757-end of 18th century) During this phase, the East India
Company profited unduly by exploiting the Indian workers through many ways such as:
● Practice of monopolistic trade: The Company monopolized' the raw material needed by
the artisans and charged a high price and also fixed the price of the finished product.
● Exactions made by company officials (to the tune of 6 million pounds between 1757-
1765).
● These events led to strikes, and the first recorded strike in India was the 1877 Nagpur
Empress Mills Strike, and later led to the rise of the Indian trade unions.

Post-independence Phase

Debashish Bhattacharjee in his article The evolution of Indian industrial relations: A comparative
perspective, traces the industrial relations history from the 1950s. The major factors which
affected trade unions in one way or the other are discussed below.

Phase 1 (1950-1965)

In Phase 1, Indian trade unions were characterized by the following features:

1. The State knew the welfare of the workers better than the workers themselves, and
intervened to play a paternal role. modell to

2. The State Pluralism model was followed.

3. Trade Union Act, 1926, came into existence.

4. The Industrial Disputes Act, 1947, came into existence, which gave the employers an
upper hand.

Voluntary arrangements such as Code of Discipline and the Inter-Union Code of Conduct were
brought about to promote collective bargaining. 6. Introduction of Works Committee (1947) and
Joint Management Councils (1958).

Phase 2 (1969-1974)
1. Change in the workers' preferences towards different union types. 2. Multiplicity of unions.

3. Attempt by the government to introduce bipartite system (National Apex Body). 4. 1976
Amendment to Industrial Disputes Act which gave the unions an upper hand.

5. Unions moved from centralized lobbying (rights) to collective bargaining (interests).

6. Public sector unions looked to be better off because of non-multiplicity.

Phase 3 (1980-1991) T

1. Massive PSU union strike (1982 Bombay Textile Strike) demanding multiplicity. 2.
Decentralized bargaining agreements kicked off. 3. Rise of independent unions and fall of
registered unions.

4. Technological change led to rise in wages and productivity.

5. Attempt to remedy limitations of Trade Union Act and Industrial Disputes 6. Monopoly trade
dominated over democratic rights.

Phase 4 (1992-2000)

1. Unprofitable PSUS suffered.

2. Government froze centralized wage bargaining process and decided to pass on the wage
increase burden to the enterprise.

3. Public looked at unions as declining "sectional interest group". 4. Drop in union membership.

5. National Labour Commission recommended an umbrella legislation to protect workers

in unorganized sector.

6. Acts amended in favour of the workers.

Q. What are the essential conditions for the success of collective bargaining in Indian work
organisations?
The following are some suggested essential conditions for the success of collective bargaining:
1. Constructive consultation between trade union and the management is possible only when
bargaining power of two parties is equal.
2. The parties involved in collective bargaining should accept the principle of 'free consultation'
and 'free enterprise'.
3. Both the parties must have mutual confidence, good faith and a desire to make collective
bargaining machinery a success.

4. The parties involved should try to dispose of the issues in the same meeting minimise the
pending of items.
5. Both the parties should represent the rights and responsibilities of each other.

6. The process of bargaining should be free from unfair practices.

7. There should be unanimity among workers.

8. Attitudes of both the parties involved should be positive.

9. Some other essential conditions are as follows:

(a) Favourable political climate

(b) Freedom of association

(c) Stable organization

Trade union relations with employee, management, and state ( HOME ASSIGNMENT)

Module IV - Psychology of group behavior; Group maturity

Development of group: formal and informal

The goal of most research on group development is to learn why and how small groups change
over time. To quality of the output produced by a group, the type and frequency of its activities,
its cohesiveness, the existence of group conflict.
A number of theoretical models have been developed to explain how certain groups change over
time. Listed below are some of the most common models. In some cases, the type of group being
considered influenced the model of group development proposed as in the case of therapy
groups.
In general, some of these models view group change as regular movement through a series of
"stages", while others view them as "phases" that groups may or may not go through and which
might occur at different points of a group's history. Attention to group development over time
has been one of the differentiating factors between the study of ad hoc groups and the study of
teams such as those commonly used in the workplace, the military, sports and many other
contexts.

Formal Groups

● A group is formal when it is purposely designed to accomplish an organizational

objective or task. It is created via formal authority for some defined purpose.
● A formal group can be a command group or a functional group that is relatively
permanent is composed of managers and their subordinates who meet regularly to discuss
general and specific ideas to improve products or services.
● The formal groups usually work under a single supervisor, even though the structure of
these groups may vary. For example, in one form of a group such as in production, the
members of the workgroup depend on each other as well as on the supervisor, and in
another form of group, such as salesforce, the members of the group work fairly
independently and their common contact may be the district sales manager.
● Other types of formal groups include task forces and committees. The task forces are
temporary in nature and are set up for some special projects. The committees can be
permanent, such as a planning committee, a finance committee, or a budget committee,
and may become an integral part of the organizational structure.

Informal Groups

● Whereas formal groups are established by organizations to achieve some specific

objectives, informal groups are formed by the members of such groups by themselves.
They emerge naturally, in response to the common interests of organizational members.
They are formed spontaneously, without any formal designation, and with common
interests such as self-defense, work assistance, and social interaction.
● They exist outside the formal authority system and without any set rigid rules. Though
officially unrecognized, they exist in the shadow of the formal structure as a network of
personal and social relations that must be understood and respected by the management.
● Informal work groups are based upon socio-psychological support and reasoning and
depend upon the member’s interaction, communication, personal likings, and dislikings
and social contacts within as well as outside the organization. How powerful these
informal groups can be seen from the fact that if one member of the group is fired,
sometimes all workers go on strike in support of that member of the group.
● The bonds between members are very strong and bring in a sense of belonging and
togetherness. This togetherness can have a powerful influence on productivity and job
satisfaction since employees motivate each other and share each other’s burdens by
 training those who are new and by looking up to old timers for guidance, advice, and
assistance.
● Informal groups may have their own leaders and followers, group goals, social roles, and
working patterns. They have their own unwritten rules and a code of conduct that every
member implicitly accepts.

Social influences on group behavior

● Groups influence individual decision-making processes in a variety of ways, such as

Groupthink, Group-shift, and Deindividuation.
● Research has identified a few common requirements that contribute to recognition of a
group: interdependence, social interaction, perception as a group, commonality of
purpose, and favoritism.
● There are both positive and negative implications of group influence on individual
behavior. This influence is useful in the context of work and team settings; however, it
was also evident in Nazi Germany.
● Groupthink is a psychological phenomenon that occurs within a group of people, in
which the desire for harmony or conformity in the group results in an incorrect or deviant
decision-making outcome.
● Group-shift is the phenomenon in which the initial positions of individual members of a
group are exaggerated toward a more extreme position.
● Deindividuation is a concept in social psychology that is generally thought of as the
losing of self-awareness in groups. Theories of deindividuation propose that it is a
psychological state of decreased self-evaluation and decreased evaluation apprehension
that causes abnormal collective behavior.

OBEDIENCE
Obedience is generally distinguished from compliance (behavior influenced by peers) and
conformity (behavior intended to match that of the majority).Thus Obedience is a form of social
influence in which a person yields to explicit instructions or orders from an authority figure.

Factors Influencing Obedience

Proximity to the authority figure: Proximity indicates physical closeness; the closer the authority
figure is, the more obedience is demonstrated. In the Milgram experiment, the experimenter was
in the same room as the participant, likely eliciting a more obedient response.
Prestige of the experimenter: Something as simple as wearing a lab coat or not wearing a lab coat
can affect levels of obedience; authority figures with more prestige elicit more obedience; both
researchers have suggested that the prestige associated with Yale and Stanford respectively may
have influenced obedience in their experiments.
Expertise: A subject who has neither the ability nor the expertise to make decisions, especially in
a crisis, will leave decision making to the group and its hierarchy.
Deindividuation: The essence of obedience consists in the fact that people come to view
themselves not as individuals but as instruments for carrying out others’ wishes, and thus no
longer see themselves as responsible for their actions.

COMPLIANCE
● Compliance” refers to a response, specifically a submission, made in reaction to an
implicit or explicit request.
● Social psychologists view compliance as a means of social influence used to reach goals
or attain social or personal gains.
● Group strength, group size, immediacy, and similarity are all factors that can influence
compliance in an individual.
● There are a number of techniques used to gain compliance, including the foot-in-the-door
technique, the door-in-the-face technique, low-balling, ingratiation, and the norm of
reciprocity.

Factors Influencing Compliance

•Group strength: The more important the group is to an individual, the more likely the individual
is to comply with social influence. For instance, an individual is more likely to comply with the
requests of her sorority than her biology classmates.
•Immediacy: The proximity of the group makes an individual more likely to comply with group
pressures. Pressure to comply is strongest when the group is closer to the individual and made of
up people the individual cares about. For example, compliance with parents’ wishes is more
likely if they live in the same city than it is if they live in another state or country.
•Number: Compliance increases as the number of people in a group increases. Importantly, the
influence of adding people starts to decrease as the group gets larger. For example, adding one
person to a large group (from 60 to 61) is less influential than adding one person to a small group
(from three to four).
•Similarity: Perceived shared characteristics cause an individual to be more likely to comply with
a request, particularly when the shared feature is perceived as unplanned and rare (such as a
shared birthday).

Techniques to Achieve Compliance

1. Foot-in-the-Door Technique
In using the foot-in-the-door technique, the subject is asked to perform a small request, and after
agreeing, a larger request is made. Because the subject complied with the initial request or
requests, he or she is more likely to feel obligated to fulfill additional favors.
2. Door-in-the-Face Technique
This technique begins with an initial large request that the subject is not expected to comply
with. The large request is then followed by a second, more reasonable, request.
3. Low-Ball Technique
This technique is frequently employed by car salesmen. Low-balling gains compliance by
offering the subject something at a low initial cost. The cost may be monetary, time related, or
anything else that requires something from the individual. After the subject agrees to the initial
cost, the requester increases the cost at the last moment. The subject is more likely to comply
with this change in cost since he or she feels like an agreement has already occurred
4. Norm-of-Reciprocity Technique
This is based on the social norm that people will return a favor when one is granted to them.
Compliance is more likely to occur when the requester has previously complied with one of the
target’s requests.

CONFORMITY
In psychology, conformity is defined as the act of matching attitudes, beliefs, and behaviors to
group norms. The two major motives in conformity are:
1) normative influence, or the tendency to conform in order to gain social acceptance.
2) informational influence, which is based on the desire to obtain useful information through

conformity and achieve a correct or appropriate result .

•Several factors are associated with increased conformity, including larger group size, unanimity,
high group cohesion, and perceived higher status of the group.
•Other factors associated with conformity are culture, gender, age, and importance of stimuli.
•Minority influence is the degree to which a smaller faction within the group maintaining a
different position on an issue influences the group during decision making. This influence is
primarily informational.

Research on conformity

1. Asch
● Solomon Asch’s conformity experiments are one of the best-known illustrations of
conformity. His initial experiment in 1951 was set up as follows. The research participant
was told he was participating in a simple “perceptual” task.
● The participant would enter a room and sit at a table with several other people. These
people were confederates, or individuals who were posing as other participants but were
really working for the researchers. The participant and confederates would be shown a
series of cards that had a reference line and another card that had three comparison lines.
 Over the course of several trials, subjects were required to select the comparison line that
corresponded in length to the reference line.
● The participant and confederates were instructed to provide their answers out loud, and
the confederates were told to sometimes unanimously provide a correct answer and
sometimes an incorrect answer. When Asch had the confederates all choose the same
obviously incorrect answer, participants also chose the wrong line 37% of the time.
● In a control group with no pressure to conform, participants had an error rate of less
1%.Asch repeated this experiment with different experimental variables and identified
several factors that influence conformity. Presence of a true partner, who was another
real participant and gave the correct response, decreased levels of conformity.
● Removing this partner halfway through the study caused increased levels of conformity
after their departure. Group size also influenced levels of conformity such that smaller
groups resulted in less conformity than larger groups. Public responses, those that were
spoken in the presence of the confederates, were associated with higher levels of
conformity than private, written responses.
Sheriff
● Muzaffar Sheriff was interested in knowing how many people would change their
opinions to bring them in line with the opinion of a group. In his experiment (1936),
participants were placed in a dark room and asked to stare at a small dot of light 15 feet
away.
● They were then asked to estimate the amount it moved; however, there was no real
movement. Perceived motion was caused by the visual illusion known as the autokinetic
effect. On the first day, each person perceived different amounts of movement, as they
participated in the experiment individually.
● From the second through the fourth day of the study, estimates were agreed upon by the
group. Because there was no actual movement, the number that the group agreed on was
a direct result of group conformity. Sherif suggested this was a reflection of how social
norms develop in larger society.

PSYCHOLOGY OF MOB

Mob psychology is a theoretical approach attempting to explain collective behavior solely on the
basis of the psychological states of people who participate. Mob Psychology is similar to terms
such as: 1. crowd psychology and group mentality. It is portrayed in many works of literature,
including William Shakespeare's Julius Caesar.
Mob psychology shows that 2. individuals tend to behave in a different manner as part of a group
in contrast to acting independently. Members of a group are prone to acting in ways that they
would deem 3. immoral or unjust if in control of their behavior.
This is not due to change in one's belief or principle, but rather the fact that individuals tend to
ignore or 4. avoid one's conscience or rational judgement. It can be said that individuals in a
group defer their goals and5. take upon the identity of the group.
Therefore, members of a group are 6.likely to commit acts they would never commit alone.
Being in a group allows individuals to 7. defer blame, responsibility, accountability, and/or
judgement upon the group.
There exist many evidence and examples of mob psychology in modern society. One example is
the 8. persecution of the Jews during the Holocaust. The Nazi party blamed Germany's weak
economy at the time upon the Jews.
Types of Crowd:
Casual Crowd: Based on your physical location, no common goal, coincidental, eg market
place.
Conventional Crowd: Based on a common act like watching a play, movie, theatre,
conventional and temporary in nature
Expressive Crowd: Can be an extension and expression of more emotions during a conventional
gathering like clapping, shouting, singing, rallys, street plays etc.
Acting Crowd: Violent, agressive,mob,riots etc

GROUP MATURITY
Maturity is less to do with your age/biological age but more to do with your mental development,
wisdome and how you conduct yourself in your relationships with others.
BRUCE TUCKMANS MODEL 1965 - STAGES OF GROUP
DEVELOPMENT/MATURITY

Forming stage: The forming stage involves a period of orientation and getting acquainted.
Uncertainty is high during this stage, and people are looking for leadership and authority. A
member who asserts authority or is knowledgeable may be looked to take control. Team
members are asking such questions as “What does the team offer me?” “What is expected of
me?” “Will I fit in?” Most interactions are social as members get to know each other.

Storming stage: The storming stage is the most difficult and critical stage to pass through. It is a
period marked by conflict and competition as individual personalities emerge. Team
performance may actually decrease in this stage because energy is put into unproductive
activities. Members may disagree on team goals, and subgroups and cliques may form around
strong personalities or areas of agreement. To get through this stage, members must work to
overcome obstacles, to accept individual differences, and to work through conflicting ideas on
team tasks and goals. Teams can get bogged down in this stage. Failure to address conflicts may
result in long-term problems.
Norming stage: If teams get through the storming stage, conflict is resolved and some degree of
unity emerges. In the norming stage, consensus develops around who the leader or leaders are,
and individual member’s roles. Interpersonal differences begin to be resolved, and a sense of
cohesion and unity emerges. Team performance increases during this stage as members learn to
cooperate and begin to focus on team goals. However, the harmony is precarious, and if
disagreements re-emerge the team can slide back into storming.

Performing stage: In the performing stage, consensus and cooperation have been well-
established and the team is mature, organized, and well-functioning. There is a clear and stable
structure, and members are committed to the team’s mission. Problems and conflicts still emerge,
but they are dealt with constructively. (We will discuss the role of conflict and conflict resolution
in the next section). The team is focused on problem solving and meeting team goals.

Adjourning stage: In the adjourning stage, most of the team’s goals have been accomplished. The
emphasis is on wrapping up final tasks and documenting the effort and results. As the work load
is diminished, individual members may be reassigned to other teams, and the team disbands.
There may be regret as the team ends, so a ceremonial acknowledgement of the work and
success of the team can be helpful. If the team is a standing committee with ongoing
responsibility, members may be replaced by new people and the team can go back to a forming
or storming stage and repeat the development process.

GROUP COOPERATION: Mutual goal, benefit, adjustment rtaher than competion or selfish
interest.

GROUP COMPOSITON:

Its basically the layout of the group, which is as follows-

Group Roles, Norms, Conformity, Workplace behaviour ( Ethics), Status ( Designations) , Social
Loafing (Psyhcologiocal phenomena in which some individuals put less efforts in achieving a
goal in compoarison to what they would do when alone), Cohort ( Sharing common behaviours),
Reference Groups ( Others groups of comparison), Group Demography, Cohesiveness
(Uninimity)

SOCIALISATION : Process on interaction between the individual and the group, begins when
one decides to join the group, ends when one decides to leave the group, learning to adjust with
the norms of the group, change of behaviour for the groups acceptance,

INTEGRATION: Diff groups keep their identity while adjusting with other groups, main aim is
for peace, harmony, cooperation, adjustment between diff socio,cultural, pol groups, eg: India,
unity in diversity.

Module V: Management of group conflict

● A conflict is a struggle and a clash of interest, opinion, or even principles. Conflict will
always be found in society; as the basis of conflict may vary to be personal, racial, class,
caste, political and international.
● Conflict may also be emotional, intellectual, and theoretical, in which case academic
recognition may, or may not be, a significant motive. Intellectual conflict is a subclass of
cultural conflict, a conflict that tends to grow over time due to different cultural values
and beliefs.
● Conflict in a group often follows a specific course. Routine group interaction is first
disrupted by an initial conflict within the group, often caused by internal differences of
opinion, disagreements between its members, or scarcity of resources available to the
group.
● At this point, the group is no longer united, and may split into coalitions. This period of
conflict escalation in some cases gives way to a conflict resolution stage, after which the
group can eventually return to routine group interaction or split.
● The term industrial conflict denotes the clash of interests, and resulting disputes of
varying intensity, between individuals, groups and organisations in the industrial relations
system. The relationship between the owners/managers and the workers/employees is
frequently one of conflict. Conflicts may exist latently or manifest themselves overtly at
every level of industrial relations.
● The overt forms of conflict are various and include absenteeism, sabotage, go-slows,
work-to-rule, restriction of output, non-cooperation and industrial action (strikes, lock-
 outs, boycotts). Industrial conflict may centre around differences in values and objectives,
and relationships in terms of power, status and distribution.
● Whereas industrial conflict and peace refer to industrial relations issues, social conflict
and peace refer to issues in the wider political and social sphere. There are numerous
theories on the source of industrial conflict, ranging from radical class-oriented Marxist
views to theories views which attribute conflict to the clash of economic interests in the
employment relationship, because workers/employees and managers have different
interests with regard to wages and effort.

Nature or Characteristics of Conflicts

Conflict is a disagreement among two or more individuals, groups, or organizations. This

disagreement may be relatively superficial or very strong. The nature or characteristics of
organizational conflict are as follows:

● Conflict arises out of two perceptions. If 'X' perceives his goals to be incompatible with
those of 'Y' and 'X' has no opportunity to frustrate the goal attainment of 'Y', there is no
conflict.
● Conflict can either exist at the latent or overt level, but generally speaking, conflict is a
term that is limited to overt acts.
● Conflict refers to deliberate behavior. 'X' deliberately tries to prevent 'Y' from attaining
his (X's) goals. If interference is accidental, there is no conflict.
● Conflict occurs when two or more parties pursue mutually exclusive goals, values or
events. It is based on the assumption that there are two or more parties whose interests or
goals appear to be incompatible.
● Conflict is different from competition. In conflict, one side sees an opportunity to
interfere with the other's opportunity to acquire resource or perform activities. In
competition, both sides try to win, but neither side actively interferes with the other.

Conflict process: conflict stimulation

Organizational conflict arises when the goals, interests or values of different individuals or
groups are incompatible and those individuals or groups block or thwart one another’s attempts
to achieve their objective. Conflict Process shows how conflict works within the organization.

5 Stages of conflict process are:

1. Potential Opposition
○ The first stage of the conflict process is called potential opposition or
incompatibility. In this stage, there are potential areas of conflict that could
develop, and they consist of communication, structure and personal variables. For
Violet, all three areas of incompatibility exist, so it's not surprising that she has
multiple issues with Eric.
○ Eric does not listen very well and always misinterprets what Violet says during
her daily meetings. For example, she might say that employees have to be
friendlier to customers, but Eric takes that to mean that it is okay for him to talk to
them about problems with the store and his personal life. The structure of the
store is also a cause of conflict because Violet has over 25 employees to manage
weekly.
○ She does not have the time to follow Eric around and ensure that he does not
upset customers. In addition, Eric's personal variables lean towards conflict. He
enjoys drama and is always ready to complain or fight with Violet over hours,
tasks or customer service. The next step deals with the recognition of the fact that
there is a conflict.
2. Cognition and Personalization
○ When one of the factors mentioned in the potential opposition stage actually
materializes as a conflict, then stage two occurs based on cognition and
personalization. During this stage, the perception of conflict arises between the
parties.
○ For example, Violet realized that Eric's numerous issues have caused a drop in
sales of 15%. She is cognizant of the fact that Eric is the one responsible and that
she needs to fix this issue.
 ○ In order for personalization to occur, the parties must feel that there is conflict via
stress, anger or frustration, resulting in emotional involvement. Once conflict
arises, individuals must make a decision on how to handle the problem.
3. Intentions

Intentions come between people’s perceptions and emotions and help those who are involved in
the potential conflict to decide to act in a particular way.

One has to infer what the other person meant in order to determine how to respond to a statement
or action. A lot of conflicts are escalated because one party infers the wrong intentions from the
other person. There are five different ways a person can respond to the other party’s statements
or actions.

○ Competing. One party seeks to satisfy his own interests regardless of the impact
on the other party.
○ Collaborating. One party, or both, desire to fully satisfied the concerns of all
parties involved in the conflict.
● Avoiding. One party withdraws from or suppresses the conflict once it is
recognized.
● Accommodating. One party seeks to appease the opponent once potential conflict
is recognized.
● Compromising. Each party to the conflict seeks to give up something to resolve
the conflict.

4. Behavior: Behavior is the stage where conflict becomes evident, as it includes the statements,
actions and reactions of the parties involved in the conflict. These behaviors might be overt
attempts to get the other party to reveal intentions, but they have a stimulus quality that separates
them from the actual intention stage.

Behavior is the actual dynamic process of interaction. Perhaps Party A makes a demand on Party
B, Party B argues back, Party A threatens, and so on. The intensity of the behavior falls along a
conflict oriented continuum. If the intensity is low, the conflict might just be a minor
misunderstanding, and if the intensity is high, the conflict could be an effort to harm or even
destroy the other party.

5. Outcomes: Outcomes of a conflict can be either functional or dysfunctional:

● Functional outcomes occur when conflict is constructive. It may be hard to think of

times when people disagree and argue, and the outcome is somehow good. But
think of conflict, for a moment, as the antidote to groupthink. If group members
want consensus, they’re bound to all agree before all the viable alternatives have
been reviewed. Conflict keeps that from happening. The group may be close to
agreeing on something, and a member will speak up, arguing for another point of
view. The conflict that results could yield a positive result.
● Dysfunctional outcomes are generally more well known and understood.
Uncontrolled opposition breeds discontent, which acts to sever ties and eventually
leads to the dissolution of the group. Organizations meet their ultimate demise more
often than you’d think as a result of dysfunctional conflict. People who hate each
other and don’t get along can’t make decisions to run a company well.

What is Functional Conflict?

● Functional conflict is a type of conflict that is characterized by the parties’ efforts to

achieve mutually beneficial outcomes. It is typically characterized by parties working
together to resolve the conflict in a constructive way.
● It is different from dysfunctional conflict, which is characterized by the parties’ attempts
to resolve the conflict in a way that harms or destroys the relationship.
● Functional conflict is typically characterized by parties working together to resolve the
conflict in a constructive way.
● It is different from dysfunctional conflict, which is characterized by the parties’ attempts
to resolve the conflict in a way that harms or destroys the relationship.

What is Dysfunctional Conflict?

 ● Dysfunctional conflict is a type of conflict that occurs when two or more parties come to
an agreement that is not beneficial to all involved. This type of conflict can cause
emotional harm, distress, damage to relationships, and create a power struggle.
● Dysfunctional conflict is a disagreement or conflict in which each side of the argument is
using or trying to use the other side to achieve their own personal goal. Dysfunctional
conflicts are often destructive and can lead to tension, anger, and resentment.

Levels of Conflict

In addition to different types of conflict, there exist several different levels of conflict. Level
refers to the number of individuals involved in the conflict. That is, is the conflict within just one
person, between two people, between two or more groups, or between two or more
organizations? Both the causes of a conflict and the most effective means to resolve it can be
affected by level. Four such levels can be identified:

1. Intrapersonal conflict. Intrapersonal conflict is conflict within one person. We often

hear about someone who has an approach-avoidance conflict; that is, she is both attracted
to and repelled by the same object. Similarly, a person can be attracted to two equally
appealing alternatives, such as two good job offers (approach-approach conflict) or
repelled by two equally unpleasant alternatives, such as the threat of being fired if one
fails to identify a coworker guilty of breaking plant rules (avoidance-avoidance conflict).
In any case, the conflict is within the individual.
2. Interpersonal conflict. Conflict can also take form in an interpersonal conflict, where
two individuals disagree on some matter. For example, you can have an argument with a
coworker over an issue of mutual concern. Such conflicts often tend to get highly
personal because only two parties are involved and each person embodies the opposing
position in the conflict. Hence, it is sometimes difficult to distinguish between the
opponent’s position and her person.
 3. Intergroup conflict. Third, conflict can be found between groups. Intergroup conflict
usually involves disagreements between two opposing forces over goals or the sharing of
resources. For example, we often see conflict between the marketing and production units
within a corporation as each vies for more resources to accomplish its subgoals.
Intergroup conflict is typically the most complicated form of conflict because of the
number of individuals involved. Coalitions form within and between groups, and an “us-
against-them” mentality develops. Here, too, is an opportunity for groupthink to develop
and thrive.
4. Interorganizational conflict. Finally, we can see interorganizational conflict in disputes
between two companies in the same industry (for example, a disagreement between
computer manufactures over computer standards), between two companies in different
industries or economic sectors (for example, a conflict between real estate interests and
environmentalists over land use planning), and even between two or more countries (for
example, a trade dispute between the United States and Japan or France). In each case,
both parties inevitably feel the pursuit of their goals is being frustrated by the other party.

Role of Communication in Conflict Management

● The dissimilarity in the ideas and opinions of individuals result in a conflict. One needs to
adjust with each other to some extent to avoid conflicts and better relations. Conflicts and
fights must be prevented to avoid its adverse consequences like stress, anxiety and
unnecessary tensions.
● Communication has a big role to play in conflict management. It has been observed that
poor communication always results in misunderstandings and eventually conflicts. Our
communication has to be clear and precise to avoid conflicts. First yourself be very clear
what you intend to convey to the other individual.
● The thoughts must be carefully put into sensible and relevant words for the others to
understand well. Never use words which might hurt the sentiments of others and avoid
using derogatory sentences. Don’t use too complicated terminologies as the other person
might not understand it well.
● Be very clear and straightforward what you expect from the other person. Don’t always
expect the other person to understand everything on his own. Haphazard thoughts only
add on to confusions and result in displeasure and disagreements.
● if you want to meet your team member at 9 in the morning at the conference hall, please
remember to mention the correct timings along with the venue as well as the agenda so
that the participants come thoroughly prepared. Don’t just communicate for the sake of it.
● Don’t merely depend on verbal communication, instead prefer communication through
email keeping each and every member in the loop.
● Never ignore anyone just because you do not like him. It is generally observed that
conflict among individuals arises when they feel neglected or left out. Transparency is
essential at all levels for better understanding and avoiding conflicts.
● Communication must not be done with members separately but must be on a common
platform so that every one gets the same picture. Master the art of writing emails. Select
the correct font, style and be careful about the content such that the mail is self
explanatory.
● Disagreements can arise anytime so make sure that the superiors are always available to
the subordinates. At workplaces, the hierarchy must not be too complicated as it only
adds to the confusions. People do not understand whom to contact and start fighting
among themselves only. At workplaces, employees must be demotivated to interfere in
each other’s works and criticize others.
● Never be loud and always be very careful about your pitch and tone. Be polite and
convincing. Make your point very clear but do not shout on others as he might feel bad
and it might go against you. Presentations, seminars, speeches must be delivered at a
noise free zone so that the information hits the eardrums of the recipients instantly and
creates the desired impact.
● Question answer round must be kept at the end in the presentations and people must not
jump in between with their questions. It seriously offends the speaker and might result in
a fight. Be a little patient and wait for your turn to speak. Be a good listener.
● An individual must not assume things on his own and overreact on petty issues. Every
individual has the right to express his views and one must first listen to what the other
person has to say.
● When two individuals are interacting with each other, try not to speak in between unless
and until required.Always meet the other person with a warm smile. Avoid being rude
 and harsh. Don’t just start shouting even if you do not agree to the other person, sit with
him face to face and make him understand his mistakes.
● Once you are through with your communication, do cross check with the other person
whether he has received the correct message or not. Wrong messages lead to confusions
and people lose their trust on each other. Make sure you are very clear and transparent
with your communication. Think twice before you speak and never offend others.

Theoretical basis of intergroup conflict: theories and perspectives.

What is conflict resolution?

Conflict resolution in simple terms is the way in which you choose to resolve a disagreement

between two or more people. It is the way that you find a solution to a given problem. Resolving

conflict often isn’t straight forward and there’s no such thing as the “best” approach because this

resolution style needs to be catered to your management style as well as the team dynamic. The

objective in conflict resolution is to come to a mutual agreement and in the best-case scenario,

with a mutually beneficial result. Conflict management is all about encouraging each party (or

parties) to reconcile their differences and find common grounds.

Types of conflict resolution styles

There are several different conflict resolution styles, and it’s important for you as a leader to

familiarize yourself with different styles of conflict management to find what works best for you.

In an interesting article by the Harvard Business Review, they highlight why understanding your

own, and your team members’ styles of conflict resolution is important to manage conflicts:

These different conflict resolution styles are important as an evaluation of what works for other

people, as well as what is going to work best for yourself if differing situations with different

audiences.

One prominent conflict resolution approach in business management is the Thomas-Kilmann

Conflict Instrument, which suggests five key styles for managing conflict. Before we get into
these five styles, it’s important to understand that in dealing with conflict, a person’s behavior

can be described by two different elements (Kenneth & Ralph, 2008):

1. Assertiveness: The extent to which people try to satisfy their own concerns; and

2. Cooperativeness: The extent to which people try to satisfy other people’s concerns

1. Accommodating

This style is about simply putting the other parties needs before one's own. You allow them to

‘win’ and get their way.Accommodation is for situations where you don’t care as strongly about

the issue as the other person, if prolonging the conflict is not worth your time, or if you think you

might be wrong. This option is about keeping the peace, not putting in more effort than the issue

is worth, and knowing when to pick battles.

While it might seem somewhat weak, accommodation can be the absolute best choice to resolve

a small conflict and move on with more important issues. This style is highly cooperative on the

part of the resolver but can lead to resentment.

Pros: Small disagreements can be handled quickly and easily, with a minimum of effort.

Managers can build a reputation as an easygoing person, and employees will know that

they can speak their mind about problems without reprisal.

Cons: Managers might be viewed as weak if they accommodate too often. Using this

technique with larger or more important issues will not solve any issues in a meaningful

way and should absolutely be avoided.

2.Avoiding
This style aims to reduce conflict by ignoring it, removing the conflicted parties, or evading it in

some manner. Team members in conflict can be removed from the project they are in conflict

over, deadlines are pushed, or people are even reassigned to other departments.

This can be an effective conflict resolution style if there is a chance that a cool-down period

would be helpful or if you need more time to consider your stance on the conflict itself.

Avoidance should not be a substitute for proper resolution, however; pushing back conflict

indefinitely can and will lead to more (and bigger) conflicts down the line.

Pros: Giving people time to calm down can solve a surprising amount of issues. Time and

space can give a much-needed perspective to those in conflict, and some issues will

resolve themselves. Managers show that they trust employees to act like adults and solve

issues.

Cons: If used in the wrong situations, this technique will make conflicts worse. Managers

can seem incompetent if they overuse avoidance because employees will think that they

are incapable of handling disagreements.

3. Compromising

This style seeks to find the middle ground by asking both parties to concede some aspects of

their desires so that a solution can be agreed upon.This style is sometimes known as lose-lose, in

that both parties will have to give up a few things in order to agree on the larger issue.

This is used when there is a time crunch, or when a solution simply needs to happen, rather than

be perfect. Compromise can lead to resentment, especially if overused as a conflict resolution

tactic, so use sparingly.

 Pros: Issues can be resolved quickly, and the parties in conflict will leave understanding

more about the other person’s perspective. Compromise can set the stage for collaboration

down the road, and allows both parties to feel heard. Managers using this tactic are seen as

facilitating agreement, being hands-on and finding solutions.

Cons: No one leaves completely happy. In some cases, one side might feel as though they

sacrificed too much, and be unwilling to compromise again in the future. Managers who

rely on this technique will burn up their employees goodwill and be seen as unable to

execute collaboration.

4.Competing

This style rejects compromise and involves not giving in to others viewpoints or wants.One party

stands firm in what they think is the correct handling of a situation, and does not back down until

they get their way.

This can be in situations where morals dictate that a specific course of action is taken, when there

is no time to try and find a different solution or when there is an unpopular decision to be made.

It can resolve disputes quickly, but there is a high chance of morale and productivity being

lessened.

Pros: Managers using this style show that they are strong and will not back down on their

principles. Disputes are solved quickly, as there is no space for any disagreement or

discussion.
 Cons: Managers using this style will be seen as unreasonable and authoritarian. Handling

conflicts by crushing any dissent will not lead to happy, productive employees, nor will it

lead to finding the best solutions in most cases.

5.Collaboration

This style produces the best long-term results, at the same time it is often the most difficult and

time-consuming to reach.Each party’s needs and wants are considered, and a win-win solution is

found so that everyone leaves satisfied.

This often involves all parties sitting down together, talking through the conflict and negotiating

a solution together.This is used when it is vital to preserve the relationship between all parties or

when the solution itself will have a significant impact.

Pros: Everyone leaves happy. A solution that actually solves the problems of the conflict

is found, and the manager who implements this tactic will be seen as skilled.

Cons: This style of conflict management is time-consuming. Deadlines or production may

have to be delayed while solutions are found, which might take a long time, depending on

the parties involved and can lead to losses.

Conflict and resistance: Resistance through distance and persistence

Resolving a Conflict: Negotiation, Mediation, and Arbitration

Negotiation: Opening a dialogue

Negotiation means discussion with the other party to try to reach an agreement. You’re free to
choose how to proceed. The law does not require you to follow any specific process or format.
Being accompanied
If you’re involved in a dispute with someone, you can try to negotiate directly with them. If it
puts you more at ease, you can ask a friend or family member to accompany you during the
negotiation.
You can also hire a professional negotiator to assist by accompanying you or by negotiating on
your behalf. The title of “negotiator” does not require any legal certification. So, you can choose
anyone you wish.
Preparing for negotiation
It is important to be well-prepared before entering into negotiations. You should:
● determine your objectives
● prepare one or more proposed solutions to present to the other person.
Even if you don’t arrive at a solution through negotiations, you haven’t lost anything. You could
try to negotiate later on, even if your dispute is before the courts. You could also try another
option, such as mediation.

Mediation: An impartial person to guide you

Mediation is a type of negotiation in which a neutral person facilitates the discussion. This
person, the mediator, plays an active role and helps you to identify your needs and interests. The
mediator can propose solutions and can even draft an agreement if the mediation succeeds.

The mediator must remain impartial at all times. They can’t favour one person over the other.
Nor can they provide an opinion on who’s “right” and who’s “wrong”. Instead, their role is to
help you speak with the other person to reach a satisfactory solution.
You can use mediation in any type of conflict. In certain situations, special procedures and
services have been established. This is the case when parents separate (to assist with custody,
support payments, etc.) and for small claims cases.

Conciliation: Facilitating communication and negotiation

● Conciliation is similar to meditation. However, the conciliator plays a less active role
than a mediator and generally does not propose solutions. Their role is to facilitate
communication and negotiation between the two parties.
● Once a dispute has made its way before the courts, a judge may act as a conciliator. The
conciliation process takes place during a meeting called a “Settlement Conference”. This
conference may be held at the request of the parties. A judge can also recommend that the
parties take part in such a conference.
● Conciliation procedures are also available in professional orders for cases involving fees
for services.

Arbitration: A specialist decides for you

Arbitration is similar to a trial in that a person, the arbitrator, rules upon the case and decides
who’s entitled to what. However, it is different from a trial in several ways:
 ● It is private and confidential, unlike a trial which is open to the public.
● When parties who are in conflict accept to go to arbitration, they generally lose the right
to go to court for the same dispute.
● It’s generally the parties involved in the dispute who choose and pay the arbitrator.
● The arbitrator is usually a specialist in the subject matter involved (for example, an
engineer, a chartered professional accountant).
● The parties involved in the conflict can choose some of the rules the arbitrator must
apply. They can even give the arbitrator permission to ignore certain legal rules.
Arbitration can be used to settle disputes in different areas. In business and labour relations,
“arbitration agreements”, providing for conflicts to be submitted to arbitration, are widely used.
Mandatory arbitration clauses are not valid in contracts between a consumer and a merchant.
However, nothing prevents a consumer and a merchant from agreeing to arbitration, if a dispute
should occur.

Conflict and negotiation: concept of negotiation; negotiation at different levels; The anchor

of negotiation; The manager as a negotiator; Psychologist as negotiator; Meaning and

issues; bargaining strategies.

Negotiation is the process of discussing each individual’s position on a topic and attempting to
reach a solution that benefits both parties. We often step in and negotiate when a conflict is
taking place, but conflict doesn’t have to exist for there to be an opportunity for negotiation.

All negotiations share four common characteristics:

● The parties involved are somehow interdependent

● The parties are each looking to achieve the best possible result in the interaction for

themselves

● The parties are motivated and capable of influencing one another

● The parties believe they can reach an agreement

If these conditions don’t exist, neither can a negotiation. The parties have to be interdependent—
whether they are experiencing a conflict at work or want to do business with one another. Each
has an interest in achieving the best possible result.

The parties are motivated and capable of influencing one another, like a union bargaining for
better working conditions. A worker doesn’t have influence over a manufacturer, but a union of
workers does, and without that influence as a factor, both parties won’t be motivated to come to
the table for discussions. Finally, the parties need to believe they can reach an agreement;
otherwise any negotiation talks will be futile.

There are two basic types of negotiation—distributive and integrative:

Distributive Negotiation

Distributive negotiation operates under zero-sum conditions. Anything one party gains in the
deal is lost by the other party. There can be a winner and a loser, and parties are usually opposing
each other. Any relationship between the two parties is usually short term, as at least one party
will walk away a “loser” of sorts and animosities can build.

Integrated Negotiation

Integrated negotiation features a variable amount of resources to be divided. In integrated

negotiations, both parties can walk away winners. Their primary interests don’t make them
“opposing parties,” but rather they’re convergent or congruent with one another. In integrated
negotiations, the relationship can be of longer term, because feelings are preserved and no one
walks away a loser.

Stages of Negotiation

Preparation and Planning

In the preparation and planning stage, you (as a party in the negotiation) need to determine and
clarify your own goals in the negotiation. This is a time when you take a moment to define and
truly understand the terms and conditions of the exchange and the nature of the conflict.

Definition of Ground Rules

After the planning and strategy development stage is complete, it’s time to work with the other
party to define the ground rules and procedures for the negotiation. This is the time when you
and the other party will come to agreement on questions like

● Who will do the negotiating—will we do it personally or invite a third party?

● Where will the negotiation take place?
● Will there be time constraints placed on this negotiation process?
● Will there be any limits to the negotiation?
● If an agreement can’t be reached, will there be any specific process to handle
that?

Usually it’s during this phase that the parties exchange their initial positions.

Clarification and Justification

Once initial positions have been exchanged, the clarification and justification stage can begin.
Both you and the other party will explain, clarify, bolster and justify your original position or
demands. For you, this is an opportunity to educate the other side on your position, and gain
further understanding about the other party and how they feel about their side. You might each
take the opportunity to explain how you arrived at your current position, and include any
supporting documentation. Each party might take this opportunity to review the strategy they
planned for the negotiation to determine if it’s still an appropriate approach.
This doesn’t need to be—and should not be—confrontational, though in some negotiations that’s
hard to avoid. But if tempers are high moving into this portion of the negotiation process, then
those emotions will start to come to a head here. It’s important for you to manage those emotions
so serious bargaining can begin.

Bargaining and Problem Solving

This is the essence of the negotiation process, where the give and take begins.

You and the other party will use various negotiation strategies to achieve the goals established
during the preparation and planning process. You will use all the information you gathered
during the preparation and planning process to present your argument and strengthen your
position, or even change your position if the other party’s argument is sound and makes sense.

The communication skills of active listening and feedback serve the parties of a negotiation well.
It’s also important to stick to the issues and allow for an objective discussion to occur. Emotions
should be kept under control. Eventually, both parties should come to an agreement.

Closure and Implementation

Once an agreement has been met, this is the stage in which procedures need to be developed to
implement and monitor the terms of the agreement. They put all of the information into a format
that’s acceptable to both parties, and they formalize it.

What is Anchoring in Negotiation?

● A well-known cognitive bias in negotiation and in other contexts, the anchoring bias
describes the common tendency to give too much weight to the first number put forth in a
discussion and then inadequately adjust from that starting point, or the “anchor.” We
even fixate on anchors when we know they are irrelevant to the discussion at hand.
● Economists Amos Tversky and Daniel Kahneman first documented the anchoring bias in
an experiment involving a roulette wheel marked with integers ranging from 0 to 100.
Each participant witnessed a spin of the roulette wheel. They were then asked whether
they thought that the percentage of United Nations member countries that was from
Africa was greater or smaller than the number spun on the wheel. Next, they were asked
to make an estimation of the true percentage.
● Participants who saw the wheel stop on the number 10 guessed, on average, that the
actual percentage of African countries belonging to the United Nations was 25%. By
contrast, those who saw the wheel stop on the number 65 guessed, on average, that the
percentage from Africa was 45%. In the experiment, a clearly random number
nonetheless had a dramatic impact on people’s judgments.
● Even experts, such as real estate agents, can be powerfully affected by anchors in
negotiation, research shows. Why are anchors so effective? When conditions are
uncertain, high anchors draw our attention to the positive qualities of the item or
individual (as in the case of a salary negotiation) being discussed, and low anchors draw
attention to flaws, according to Columbia Business School professor Adam Galinsky.
● Dropping Effective Anchors:
● Research on the anchoring bias has shown that negotiators may be able to gain an edge
by making the first offer and anchoring the discussion in their favor. The decision of
whether to make the first offer generally should be based on two factors: your knowledge
of the zone of possible agreement, or ZOPA—that is, the range of options that should be
acceptable to both sides—and your assessment of the other side’s knowledge of the
ZOPA.
● When you believe the other party likely knows more than you do about the size of the
ZOPA, you will have difficulty anchoring effectively. Before dropping an anchor in such
situations, arm yourself with as much information as possible.
● If both sides have a strong sense of the zone of possible agreement (ZOPA), as in the case
of a longtime relationship between a supplier and customer with open books, anchors are
unlikely to have a strong impact.
 ● If neither side knows much about the size of the zone of possible agreement (ZOPA), you
may be able to effectively drop an anchor, though you could risk being too concessionary
or too demanding.
● If you know a great deal about the asset up for discussion, you can make an aggressive
first offer with confidence and expect that your offer will anchor the discussion to your
advantage.

The manager as a negotiator; Psychologist as negotiator

Conflict and negotiation: bargaining strategies.

Bargaining is a process of reaching a mutually acceptable solution among all parties to the
conflict at the end of the negotiation process. Bargaining strategies help to resolve the conflict
through proper communication and understanding of the situation.

2 types of bargaining strategies are

Distributive Bargaining Strategy

● Distributive bargaining is defined as negotiations that seek to divide up a fixed amount of

resources, a win-lose situation. Its most identifying feature is that it operates under zero-
sum conditions, i.e., each party bargains aggressively and treats the other as an opponent
who must be defeated.
● The core of distributive bargaining is that each party has a target point and a resistance
point. The target point is what the parties would like to achieve most.
● Each party’s target point is most of the time are entirely or extremely opposite. The
resistance point is the minimum result which would be accepted by the parties.
 ● The difference between these two points in each one’s aspiration range. As long as there
is some overlap between the aspiration ranges, there exists a settlement range in which
each one’s aspiration can be met.
● When engaged in distributive bargaining one’s tactics are a focus on trying to get one’s
opponent to agree to one’s specific target point or to get as close to it as possible.
● Examples of such tactics are persuading to his/her target point and the advisability of
accepting a settlement near yours arguing that your target is fair, which your opponents is
not and attempting to get your opponent to feel emotionally generous toward you and
thus accept an outcome close to your target point.

Integrative Bargaining Strategy

● The negotiation that seeks one or more settlements than create a win-win situation is
called Integrative Bargaining Strategy.Regarding intra-organizational behavior, all
things being equal integrative bargaining is preferable to distributive bargaining.
Integrative bargaining builds long-term relationships and facilitates working together in
the future.
● It bonds negotiators and allows each to leave the bargaining table feeling that he/she has
achieved a victory. Distributive bargaining, however, leaves one party a loser.
● It tends to build animosities and deeper divisions when people have to work together on
an ongoing process.

Distributive versus Integrative Bargaining

Distributive Characteristics Integrative Characteristics

Bargaining
Characteristics

Available A fixed amount of resources to be A variable amount of resources to

resources divided. divide.
Primary I win, you lose. I win, you win.
motivations

Primary interests Opposed to each other. Convergent or congruent with each

other.

Focus of Short term. Long term.

leadership

Nature Distributive negotiation is Integrative negotiation is

competitive and requires that every collaborative and all the parties
party views every other party as a negotiate on friendly terms, acting as
competitor. allies to one another.

Focusing interest In a distributive negotiation, every Integrative negotiation focuses on

negotiator focuses on meeting his mutual interests of all the parties and
interests, regardless of the loss the thus, comes up with constructive
others may have to face. solutions that will be beneficial for
all.

FAQS

Q.applicability and coverage of factories act, 1948 (6 marks)

● Objective
1. To protect human beings from being subject to unduly long hours of bodily strain
of manual labor.
2. Seeks to provide the employees should work in healthy and sanitary conditions
3. As far as manufacturing process will allow and that precautions should be taken
for their safety and for the prevention of accidents
● Scope and applicability
1. Act extends to whole india, applies to all factories, inc. factories belonging to the
central or any state govern. Unless otherwise excluded.
2. Benefits available to persons who are employed in the factory and be covered
within the meaning of the term”worker” as defined in the act.