CHAPTER-1

INTRODUCTION TO INDUSTRIAL RELATION

INDUSTRIAL RELATION

INDUSTRY:" Any productive activity in which an individual (or a group of individuals) is (are) engagedµ. RELATION:´The relationships that exist within the industry between the employer and his workmen.µ

Demand of Industrial Relations:
In medieval society- direct relations between master & servant to secure cooperation. But situation underwent a change with the emergence of factory system after the Industrial revolution in England. Industrial Revolution changed radically the techniques of production and resulted in investment of huge amount of capital in technology,company form of organisation gain popularity, seperation of ownership and management of industry.

.Demand of Industrial Relations: All the factors lead to labour unrest and conflict and therefore cooperation between the labour and employers has been emphasized (means Industrial relation come in to existence at that time).

Industrial Relations The term µindustrial relations¶ refers to relationships between management and labour or among employees and their organisations that characterise or grow out of employment. There are two parties in µemployment¶ relationship-labour & management. Both parties need to work in a spirit of cooperation. adjustment & accommodation .

individual relations and joint consultation between employers and workpeople at the workplace. .Industrial Relations Industrial relations includes individual. collective relations between employers and their organisations and trade unions and the part played by the state in regulating these relations.

A.the art of living together for the purpose of Productionµ(J. in the broad sense the term also includes the relation between the various unions .between the states and the unions as well as those between the employers and the stateµ (Casselman·s labour dictionary) .Henry) Or ´The field of IR includes the study of workers and their trade unions management employers· associations and the state institutions concerned with the regulation of employmentµ (H. Clegg) Or ´It is the relation between employers and employees in industry.Concept of industrial relations IR is an art .

It create rules and regulations to maintain piece and harmony. 3. An outcome of relationship in industry.Characteristics of IR 8 1. 4. employer and their association and government. 2. . union and government. It has a role of management. Important parts of IR are employees and their organization.

To safeguard the interest of labor and management and promote & develop their relations. 3. absenteeism and high turnover.Objective of IR 9 1. To regulate the production by minimizing industrial conflicts. 4. . To encourage and develop trade unions in order to improve the workers' strength. 2. To provide opportunity to workers to involve in decision making process with management.

6. lockouts and gheraos by providing resonable wages.Objective of IR 5. To minimise the no. .improved living and working conditions. To establish and promote the growth of an industrial democracy based on labor partnership in sharing in profits & decision making. To improve the economic conditions of workers in the existing state of industrial management. 7. of strikes.

b) balancing of union rights and management rights Conflict.Union-management cooperation will be a function of two forces:.Conflict and Cooperation Cooperation. there are two aspects:. . to Douglas McGregor.Some degree of conflict is inevitable as it is essential to survival of both union and management and is not always bad and certain constructive aspects.a) behavioural pattern of union and management.Dominant Aspects of IR Acc.

Importance of IR Industrial peace Higher productivity Industrial democracy Collective bargaining Fair benefits to workers Higher morale of workers Facilitation of changes .

The Actors in Employee Relations Management Workers and their organization The management The Government .

Scope of IR a) b) c) a) b) Promotion of healthy labour management relations Responsible trade union and Association of Employers Spirit of collective bargaining Labour welfare Maintenance of industrial peace Machinery for the prevention and settlement of industrial disputes Provision of bipartite and tripartite forums .

Scope of IR a) b) c) Promotion of industrial democracy Establishment of the joint management councils at the plant levels Recognition of human right in industry Increase in productivity .

Approaches To Industrial Relations Classical approach Human relation approach Pluralistic approach Social action approach System approach Gandhian Trusteeship approach .

Factors Affecting IR Institutional factors Economic factors Social factors Technological factors Psychological factors Enterprise-related factors Globalization .

formed primarily for the purpose of regulating the relations between the workmen and employers. through collective action . Sec.economic. or for imposing restrictive conditions on the conduct of any trade or business and includes any federation of two or more trade unions. ( Webb) ´ A labour union or trade union is an organization of workers formed to promote. or between employers and employers. or between workmen and workmen.the social . 2(h) ²Trade union Act. and political interest of its membersµ.1926 defined union as ´ any combination. protect.Trade union Definitions: ´A Concept and Nature Or trade union is continuous association of wage earners for the purpose of maintaining or improving the conditions of their working livesµ.µ Nature of Trade union : a) b) c) d) It is an organization It is an Permanent body It is formed for common interest of labour It is a group efforts . and improve . whether temporary or permanent.

Trade union Objectives Steady employment Rationalization of personnel policies Voice in decision affecting workers Recognition and participation Gaining legislative enactment Miscellaneous services .

4. 5.Role of Trade Unions in IR 20 1. 3. discipline etc. . Achieving higher wages To offer responsive co-operation in improving level of production. 2. To promote individual and collective welfare To improve working and living conditions To enlarge the opportunities of promotion and training.

Trade unions Functions of Trade Unions Militant functions Faternal functions Political functions .

Motive of Joining TU Economic Benefits Platform for self Expression Check on arbitary actions of management Security Employer-Employee Relation Sense of Participation Sense of Belongingness Background factors .

Methods of TU Mutual Insurance Collective Bargaining Legal Enactment Direct Action .

According to purpose Reformist union Revolutionary (b) According to membership structure I. III.Trade Union Types of trade union (a) I. Crafts union Industrial union General union . II. II.

Trade Union Problem of trade union in India Uneven growth Low membership Outside leadership Multiplicity of unions Inter-union rivalry Absence of paid office bearers Weak financial position Subscription dues unpaid .

Emerging challenges in IR Revolution in information technology Advancement of technology Adoption of new technology Economic changes Changes in economical policy Changing international environment Increased no. of mergers and acquisition Changing needs of customers .

Integration of economies 2. Changes in management style 4. Increase in inequities . Global benchmarking 3.Reasons for challenges Globalization Impact : 1.

Age group and aspirations of the workers . Change in skill level 3.Change in workforce profile: Impact : 1. Increase in education level 2. Knowledge worker 4.

Increased Training needs 3.Technological advancement: 1. Involvement of employees for technological changes . Obsolete jobs 2.

Changes in politico-legal environment : 1. Role of non-government organisations . Role of government 2.

Contemporary issues in IR Low wages Employment of women Ignorance and illiteracy Child labor Industrial housing Social security .

Trade Union Structure of trade union in India Local level Federation Regional level Federations National Federations Example : 1.AITUC 3.HMS 4.The Indian national trade union congress 2.UTUC .

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