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MANAGEMENT & TECHNOLOGY


24 September 2013

Introduction to Management of Industrial Relations


Dr. Kalpana Maheshwari

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What is Employment Relations?

A particular set of phenomena associated with regulating the human activity of employment
The administering of the institutions and making rules of work regulation Socio-industrial conflict (in all its forms) and its resolution. Explicit and implicit bargaining between employees and employers

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Perspectives on employment relations

Approaches to organisations

Unitary
Authoritarian Paternalism

Pluralistic
Co-operation Conflict Approaches to industrial relations

Marxist
Evolution Revolution

Input

Conflict (differences)

Conversion Institutions and processes

Output Regulation (rules)

Human resource management Labour market

Systems

Social action

Wider approaches to industrial relations

Control of the labour process

Comparative

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Unitary perspective

Assumptions
Capitalist society Integrated group of people within the work organisation Common values, interests and objectives

Nature of conflict and its resolution


Irrational and aberrant Frictional and personal Coercion or paternalism

Role of Trade Unions


Intrusion from outside Historical anachronism Management only forced to accept trade unions in economic relations

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The Unitary perspective explained

There is one best way of doing things, and therefore anyone who disagrees is wrong The productive enterprise has objectives which are in the interests of all associated with it (Burchill, p3) Stresses common purpose and harmony: often ideas of team-working, commitment to the enterprise HRM.

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Unitarism and conflict

Conflict is seen as pathological, and caused by


Ignorance: so institute training Bad communications: improve them Troublemakers and deviants: requires discipline at work and strong law Outside agitators: get rid of them

Trade unions are either oppositional, or pointless

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Pluralist perspective

Assumptions
Post-Capitalist society Coalescence of sectional groups within work organisation Differing values, interests and objectives Competitive authority/loyalty structures (formal & informal)

Nature of conflict and its resolution


Rational and inevitable Structural and institutionalised Compromise, negotiate and agreement

Role of Trade Unions


Legitimate and accepted in both economic and managerial relations Internal and integral to organisation

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The Pluralist perspective explained

This view acknowledges divergent interests within society and the organisation (Burchill, p4)

Not all parties at work share the same goals: slimming down the firm means people lose jobs: pay rises affect profits Does not seek to overthrow capitalism, but to contribute to its management

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Pluralism and Conflict

Conflict is normal and inevitable, in society and at work Worker organisations may not be liked, but are legitimate Mechanisms for resolving conflict include
Disciplinary and grievance procedures Disputes procedures

Collective bargaining is THE pluralist concept

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Marxist perspective

Assumptions
Capitalist society Division between labour and capital Imbalance and inequalities in society (power, wealth etc)

Nature of conflict and its resolution


Inherent in economic and social system Industrial conflict part of wider social conflict Disorder precursor to change in society

Role of Trade Unions


Employee response to capitalism Expression and mobilisation of class consciousness Develop political awareness and activity

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The Marxist perspective explained

Society is essentially divided into two classes those who own the means of production, and those who do not (Burchill, p5)

Labour is regarded as a factor of production, and profit is made through its exploitation Trade unions are a defence against exploitation, through worker unity

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Adapted from Salamon 2000:6

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Meaning

Relations between management and workers and the role of regulatory mechanism to resolve any dispute. Parties to IR
Employers & their Associations

Employers & their Associations

Government (Regulatory Body)

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IR System Concept: A Causal Model Representation


Actors

Contexts Rules or Outcomes

Processes

Ideology

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IR Systems Concept (Dunlop 1958) Major Elements

Actors (workers, unions, mgmt, government) Contexts (labor and product markets, technology, community) Processes (unilateralism, individual bargaining, legislation, adjudication, CB) Ideology (minimal shared beliefs; the glue that gives systems stability) Rules (broadly defined) or Outcomes (pay, benefits, work rules, working conditions, job satisfaction, industrial democracy, peace and conflict, productive efficiency)

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Factors affecting industrial relations.

Institutional factors Economic factors Social factors Technological factors Psychological factors. Political factors. Enterprise-related factors. Global factors.

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Approaches to industrial relations.

Psychological approach Sociological approach Human relation approach Socio ethical approach Gandhian approach System approach

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Human relations approach

Physiological needs Food, water, clothing, shelter etc. Security needs or safety needs Physical security Financial security Job security Social needs Companionship affection Egoistic needs Desire of self-esteem and Esteem from others.

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How to manage IR under Human relations approach

Management has to design a suitable motivational strategy to provide environment for their optimum need satisfaction, required for maintaining good human relations in the organizations, which in turn also leads to good industrial relations.

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Socio-ethical approach

This approach is not widely accepted It holds that industrial relations to great extent depends on ethics of the people involved in it. For maintenance of good Industrial relations both the labour and management should realize their moral responsibility and greater understanding of each others problem

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Socio-ethical approach contd..

The goal of labour management relations is ensuring maximum productivity, leading to rapid economic development This goal can be achieved by adequate understanding among employers, workers and the government, of each others role in industry and willingness among parties to co-operate as partners in the industrial system.

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Role of manager under socio-ethical approach

Development of a code of ethics and a management philosophy for industrial relations. This philosophy should be firm but fair, tough but tender and hard but human.

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Gandhian approach to industrial relations.

This approach of industrial relations is based on the following concepts:


Truth Non-violence Aparigraha Non-co-operation trusteeship

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Gandhian approach - contd

Worker has right to strike This right has to be exercised in a just cause, and in a peaceful and non-violent manner It should be resorted to only after the employer fail to respond to their moral appeals Disputes between employers and laborers are to be resolved through non-violent means. Non-co- operation amounts to peaceful strikes

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Principles of Aparigraha

Individual does not have any right to hold or use wealth in disregard of the interest of society The character of production is to be determined by social necessity rather than by personal whims or greed.

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Trusteeship

There is no room for conflict of interest between the capitalist and labourers.

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Characteristics of Indian labor

Social composition Sex composition of workers Emergence of tribal labour Heterogeneity of labour Lack of differentiated class character High rate of absenteeism and labour turnover Migratory character Instability and village nexus

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Concepts and values


Employment relations are concerned with subjective, value judgements about concepts for which there are no universally accepted criteria. Most of the important issues and debates in industrial relations centre around:

Power & Authority and inequality Fairness & Equity Individualism & Collectivism Integrity and trust Rights and responsibility

Control and personal autonomy

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24 September 2013

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