Assignment on Industrial Relations

What are Industrial Relations?

“Industrial Relations” refers to all types of relations between employers and workers, be
they at national, regional or company level; and to all dealings with social and economic issues,
such as wage setting, working time and working conditions.
Meaning or Definition Of Industrial Relations
Industrial relations or employment relations are the multidisciplinary academic field that
studies the employment relationship. The term industrial relations explain the relationship
between employees and management which stem directly or indirectly from union-employer
relationship.
Industrial relation is the relation in the industry created by the diverse and complex
attitudes and approaches of both management and workers in connection with the management
of the industry. The term "industrial relations" refers to the complex of human relationships
which emerges in work situations.
Nature of Industrial Relation
Industrial relations are concerned with the system, rules, and procedures used by unions
and employees to determine the reward for effort and other conditions of employment safeguard
the interests of the employees and their employer and regulate how employers treat their
employees.
IR arises out of employer employee relations.
IR is a web rule, it formed by the interaction of govt., industry and labor.
IR multi dimensional: influenced by complex set of institutional, economic and
technological factor.
IR is dynamic and changing: Keep pace with employee expectations, trade unions,
employer associations and other economic and social institutions of society.
IR is characterized by force of conflict and compromise, Individual differences and
disagreements resolved through constructive means.
Govt. influence and shapes IR: With its laws, rules, and agreements through executive
and judicial machinery.
Scope of IR very Wide as it covers grievances, disciplinary measures ethics, standing orders,
collective bargaining, participatory schemes and dispute settlement mechanism etc. Interactive
and consultative in nature: In resolving conflict, controversies and dispute between labor and
management.
Factors Affecting Nature of Industrial Relations
Industrial relations deal with human behavior and management of personnel in an organizational
setup. The various factors that influence the relationship between the administration and the
employees in an organization are as follows:
Individual Behavior
Every person has a different perception, background, skills, knowledge, experience and
achievements which influence an individual’s behavior. The employees, therefore, behave
differently in different situations, thus impacting the work environment in the organization.
Organizational Structure
The hierarchical structure creates more formal relationships among the employees belonging to
different hierarchical levels in an organization. Also, the delegation and execution of decision-
making power by the superior influences the industrial relations between the managers and the
employees.
Psychological Factors
An employee’s attitude and mentality towards the employer and the given task; and the
employer’s psychology towards the workers can be positive or negative, which ultimately
impacts the employee-employer relationship.
Leadership Style
Every manager possesses certain leadership traits and different style to function even in a formal
organization. Through his/her formal or informal ways of generating team spirit and motivating
the employees, he/she impacts the organization’s industrial relations.
Economic and Technical Environment
To cope up with the changes in the economic conditions or technology, organizations need to
restructure the task of the employees including their work duration, conditions and wages; which
leads to a difference in their behavior, attitude, adapting spirit, etc. towards the organization and
its people.
Legal and Political Environment
The legal framework and political circumstances influence the organization and its industrial
relations. It contributes to the framing of rules, rights, authority, powers, roles and
responsibilities of all the parties of the organization.
Scope of Industrial Relations
Union–management relations: Union–management relations are special importance in
that, through collective bargaining and other formal and informal means of interaction, unions
and employers establish the wages, hours, and working conditions of large numbers of workers.
Employer-Employee Relations: The relationship that pertains between the business owner and
the employees of a particular company is known as the employer-employee relationship.
Group Relations: The interactions and communication between the workers belonging to
different workgroups are studied under group relations. Relationship amongst various groups of
employees, effect of extraneous factors like state, socio-political-economic factors on workplace
relationships.
Labor Relations: In an organization, the relationship shared by the managers and the workers is
termed as labor relations.
Public Relations: Public relations or community relations is the interaction and relationship of
the organization with the society or external bodies. For long-term existence in the business,
every organization needs to maintain cordial public ties.
Objective of Industrial Relation
In any business organization proper coordination of all stable holders is inevitable for the
purpose of the achievement of the group goals of the business. As the organizational size become
enormous/big the Decentralization becomes the necessity. Although the individual or the
subgroup goal should usually harmonize with the group goals but at times they conflict each
other thereby endangering the industrial relation which in the long run prove detrimental to the
objectives of the organization. The organizational function like planning, organizing, directing,
controlling &coordination are all different in nature but they are inter related to each other in a
systematic manner. One thing which is common behind the veil of every function is human
resources which may be skilled, unskilled etc.
They have to work at a single platform for some task or objectives in such situation or
conditions to bring all human beings under a single umbrella in any organization either willingly
or compulsorily. Industrial relations provide the way for the same in an amicable and
harmonious manner. Industrial relations provide opportunities for negotiation and settlement of
any matter in the organization. After considering the above stated matter, we can say that it is the
interest of every person or a single task in the organization which governs the decision-making.
Interest is the main base for the development of the management associations and trade unions.
The profit maximization is the main aim of management where as wages, salaries, incentives,
benefits and facilities is the interest of trade unions.
Why to study IR
To enhance economic status of worker
To avoid industrial conflict and their consequences.
To extend and maintain industrial democracy
To provide opportunity to the worker to have a say in the management decision making.
To regulate production by minimizing conflicts.
To provide form to the workers to solve their problems through mutual negotiations and
consultations with management.
To encourage and develop trade union in order to develop workers collective strength.
Functions of Industrial Relations
IR comprises such functions as:
It defines the rights and duties of its actors. It reduces channelizes conflict, disputes
unrest alienation etc, that which affect healthy labor relation. IR is a rule making process.
To establish communication between workers and management to maintain the sound
relationship between the two groups.
To establish support between managers and employees.
To ensure the creative contribution of trade unions to avoid industrial conflicts.
To safeguard the interests of workers and the management,
To avoid an unhealthy and unethical atmosphere in an industry.
To formulate such considerations that may promote understanding, creativity, and
cooperativeness to enhance industrial productivity.
To ensure better workers’ participation.
Importance or benefits of industrial Relation
Good Industrial Relations can establish:
  Healthy working climate
 Smooth and uninterrupted flow of production
 Use of Full capacity of efficiency
 Industrial growth and economic development
 Good labor management
 Minimum unemployment
 National progress and prosperity
Promotes Democracy: Industrial relations means employing collective bargaining to resolve
issues faced by workers.. This enables an organization to establish industrial democracy, which
eventually motivates the workers to perform their best to the growth and prosperity of the
organization.
High Morale: Good industrial relations enhance the morale of the employees and motivate the
workers to work more efficiently.
Avoid Conflicts Between Management And Union: Industrial relations minimize issues
between unions and management. This results in ignoring any unfair practices that could lead to
major conflicts between employers and trade unions.
Minimizes Wastage: Satisfactory Industrial relations are maintained on the basis of co-
operation and recognition of each other in the department. It helps to minimize wastage of
material, manpower, and costs.
Economic Growth and Development: Good and harmonious industrial relations result in
increased efficiency and hence prosperity, which in turn minimize turnover and other tangible
benefits to the organization. This promotes economic growth and development.
IR model or Approach:
IR = f (a,c,r……..i/g). IR stands for Industrial Relations. F stands for function. A stand for actor
-Trade union leader, worker, manager, owners , government, public relations. C stands for
context - Social, economic, political, legal, demographic, technology. R stands for Rules. I/G
stand for ideology/goals.
The three popular approaches to industrial relations are the unitary approach, pluralistic
approach and Marxist approach. These approaches to industrial relations at a primary level are
analytical categorizations and not theories having predictive values. Some of the important
approaches to industrial relations are:-
1. Unitary Approach 2. Pluralistic Approach 3. Marxist Approach 4. Human Relations Approach
IR is perceived differently by a different group of behavioral practitioners and the orbits.
Some believed that IR is related to the Class Conflict while some perceived it in terms of Mutual
Co-operation and still others perceived it in terms of Competing Interests of various groups. On
the basis of these perceptions, there are four popular approaches to Industrial Relations. These
are:
Unitary Approach: The unitary approach is based on the notion that all the members of
the organization Viz. Managers, workers, and other staff have a common set of objectives,
purposes and interests and, therefore, work in unison towards the accomplishment of shared
goals. 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 co-operation, individual treatment, team-work, and shared goals.
Pluralistic Approach: The pluralistic approach suggests that there is more than one
source of power in the relationship between workers and business leaders. Unions are often a
central component to the pluralistic approach that seeks a balance of power between leadership
and employees. The pluralistic approach is just the opposite of unitary approach which is based
on the assumption that an organization is an alliance of powerful and divergent sub-groups
(management and trade unions), having different competing interests are mediated by the
management.
Marxist Approach: The Marxist approach is based on the basic assumption that the
conflict is regarded as the product of a capitalist society. This means that conflict arises not just
because of the rift between the employee and the employer, but also because of the division in
the society between those who own the means of production (capitalists) and the ones who have
only labor to offer. The ultimate objective of the capitalists is to increase the productivity by
paying possible minimum wages to the workers due to which the latter feels exploited.
Human Relations Approach: The Human relations approach is propounded by Elton
Mayo, who is a humanist and believes in the positive nature of the employees. According to him,
given human initiatives from management, the employees positively listen and respond properly
to them and hence there is no room left for the conflict to arise. But however Marxists and
Pluralists did not appreciate too much stress on the positive nature of the workers.