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• Employee relations consist of all those areas


of human resource management that involve
relationships with employees-directly or
through collective agreements where trade
unions are recognised

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• Relationship will be concerned with the agreement of terms and
conditions of employment and with issues arising from
employment.

• Employee relations practices include formal processes,


procedures and channels of communication

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i. Industrial Relation is that part of management
which is concerned with the manpower of the
enterprise – whether machine operator, skilled
worker or manager. BETHEL, SMITH & GROUP

ii. Industrial Relation is a relation between


employer and employees, employees and employees
and employees and trade unions. - Industrial
dispute Act 1947

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Employee Relation is a much broad concept. It is one of the most
important function of the management that is take care by HR
department. ER department takes care of employee grievances,
employee recognition, and boosting the morale of employees to
make the working environment more healthy, live and at the same
time fulfills the management’s expectations and maintain the work
culture and ethics.

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Employer
&
Employee
Relationship

Relations within
organization

Employee
& Employee
Employer Relations among
Relationship themselves

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• Institutional factor
• Economic factors
• Technological factors
• Psychological factors
• Political and legal factors
• Global factors

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• HR policies and practices
• Organizational climate and culture
and value systems
• Adaptability to change
• Codes of conduct
• Collective bargaining agreements
• Labour unions
• Employers’ organizations/
federations

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• Type of ownership: public or private
limited, Whether domestic or MNC,
Govt. or private sector
• Nature and composition of the
workforce
• The source of labour
• Labour market status
• Disparity of wages between groups
• Level of unemployment

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• Work methods
• Type of technology
• Rate of technology change
• Ability of organizations and people to cope with
change

•Since these factors have a direct influence on


employment status, wage level, collective
bargaining process in an organisation.
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• Owners’ attitude
• Perception of the workforce
• Workers’ attitude towards work
• Their motivation, interest,
dissatisfaction and boredom
leading from man-machine
interface.

•These have a great impact on


job and personal life factors and
hence indirectly impact IR

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• Prevalent Political philosophy
• Attitude of government
• The ruling party/ ies ideology
• Labour laws and The legal framework
for IR
• Changes in the above framework
• Role of political factions in TUs

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• Role of ILO

• International relations

• Newer formats of business

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• History of industrial relation
• Economic satisfaction of workers
• Social and psychological satisfaction
• Off-the-job conditions
• Enlightened trade unions
• Negotiating skills and attitude of management
and workers
• Public policy and legislation

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• Better education
• Nature of industry
• Monetary benefits
• Safety & security
• Grievance handling
• Recognition & appreciation
• Scope for advancement
• Style of management
• Participation in decision making
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So a well planned Employee Relations is a key to success for healthy
environment, balanced relation where employer & employee both are
completely satisfied and finally to avoid all the conflicts at work place
to get desired results to reached the organizational goals.

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March 12, 2012