Industrial Relations

Functions of HR

MANAGERIAL OPERATIVE
FUNCTIONS FUNCTIONS
Planning Staffing
Development
Organising
Compensation
Directing
Motivation
Controlling Maintenance
Integration
Emerging Issues
 Operative functions of HR
STAFFING Job analysis, HRP, Recruitment,
Selection, Placement, Induction,
Internal Mobility

Competency profiling, Training and

DEVELOPMENT development, Performance &
potential management, Career
management, 360 degree feedback

Job design, Work scheduling, Job

COMPENSATION evaluation, Compensation
& MOTIVATION administration, Incentives and
benefits
 Operative functions of HR (contd.)
Health, Safety, Welfare,
MAINTENANCE Social security

Employment relations, Grievance,

INTEGRATION Discipline, Trade unions,
Participation, Collective
bargaining

EMERGING HRIS, HR audit, HR scorecard,

International HRM, Workforce
ISSUES
Diversity
 Gheraos, work stoppages, strikes, lockouts

Neglect leads to indiscipline, lack of

mutual trust, frustration alienation

Vital aspect of Human relations

management
 Violent action or inaction makes newspaper headlines
 Examples

• Jan 27 2012 : Regency Ceramics, Yanam workers attacked

President (Operations), resulting in head injuries

• Jan 2012: stir by a section of Air India pilots which led to

cancellation of 52 flights
Factors in IR

 Institutions

 Characters

 Methods

 Contents
Case for study of Industrial Relations
Organized sector IR patterns and its impact on
unorganized sector

Unions are an important force in the political system

Effect on productivity and productive efficiency

Aspects of Industrial relations
Promotions and development of healthy labour
management relations

Maintenance of industrial peace and avoidance of strife

Development of industrial democracy

The Industrial Relations System
Institutional
factors

Political Economic
factors factors

Industrial
Relations
Psychological
Social Factors
factors

Technological
factors
Approaches to Industrial relations
 Each approach is partial, derived from a particular
perspective
 They are not mutually exclusive
 All approaches involve a mixture of

• Assumption and conviction

• Description, explanation and prediction
• Prescription

 Participants perception of reality will influence behaviour

and actions.
 These approaches make different assumptions about

 Nature of the organisation

 Work and society

 And therefore view the role of trade unions and conflict

differently.
Unitary Perspective

 Organization is/should be
 an integrated group of people
 Single authority structure

 Set of common values/interests/objectives

shared by all members of the organization

 Managements prerogative is regarded as

legitimate, rational and accepted and
opposition to its irrational
 Conflict is unnecessary and exceptional

 Factionalism a pathological social condition

 Coercion legitimate use of managerial power

 Therefore, Collective bargaining anti-social mechanism

 Stand on Trade Unions?

 Trade unions intrusion

 With enlightened human relations management no longer

necessary

 Trade unions for market relations but not managerial relations.

 Pluralistic
 Post capitalist

 Acceptance and institutionalisation of political

and industrial conflict.

 Organisation is multi-structured

 Complex of tensions and competing claims have

to be managed

 The organisation is therefore in a permanent

state of dynamic tension
 Conflict is rational and inevitable
 It is structurally determined ( industrial and organizational
factors)
 Mutual dependence of sectional groups in so far as they have
a common interest in the survival of the whole of which they
are parts.
 Management by consent rather than management by right
 Accepts legitimacy of employees combining in formal
organizations to express their interests.
Marxist
 Class conflict is the source of societal change

 Class conflict arises primarily from the

disparity in the distribution of and access to
economic power within the society

 Principal disparity between those who own

capital and those who supply labour

 Social and Political conflict is an expression

of underlying economic conflict within the
society
 Imbalance in social power

 Social and political institutions support the intrinsic position

of management

 Even law not an independent referee

 Growth of trade unionism is seen as an inevitable response to

capitalism
 Approaches to organizations
Unitary Pluralistic Marxist

Authoritarian Paternalism

Conflict Cooperation

Evolution Revolution

Human Control of
Social the labour
Resource Partnership
Management process
 Unitary Pluralistic Marxist

Assumptions Capitalist society Post-capitalist Capitalist society

society

Integrated group of Coalescence of Division between

people sectional groups labour and capital

Nature of conflict Irrational and Inevitable rational Disorder precursor

frictional and structural to change

Resolution of Coercion Compromise and Change society

conflict agreement

Trade Unions Intrusion from Legitimate Employee response

outside to capitalism
The Gandhian Approach
 Theory of trusteeship :

 All forms of property and human accomplishments

are gifts of nature and as such they belong not to
anyone individual but to the whole society

 Employers should not regard themselves as sole

owners of mills and factories

 They should regard themselves as trustees or co-

owners.

 Workers to regard mill and machinery as their own

Human Resource Management
Approach

 Emphasis individualism

 Direct relationship between management and its employees

 Questions the collective basis of individual relations

Dunlops system approach

Environmental Forces Participants in the system Outputs

• Market or Budgetary
constraints Union- Management
• Technology Rules of the workplace
• Distribution of power in Government
society
Systems Theory of Industrial Relations
 The IR system is a sub-system of society.

 Dunlop (1958) – “An industrial relations system at any one time in

its development is regarded as comprising certain actors, certain
contexts, an ideology which binds the industrial relations system
together and a body of rules created to govern the actors at
workplace and work community”
All About Actors…

 Dunlop (1958) – “An industrial relations system at any one

time in its development is regarded as comprising certain
actors, certain contexts, an ideology which binds the
industrial relations system together and a body of rules
created to govern the actors at workplace and work
community”
 ILO
Actors in IR
Trade Federations
Employees
Unions

Employer Associations

State
Indian labour
Conference
Legislative
Standing
labour
Executive Committee

Judiciary
All About Actors…
Employees

 Managerial Vs. Non Managerial

 White Collar Vs. Blue Collar

 Core Vs. Peripheral

All About Actors…
 Employee Unions / Associations
 Craft Unions
 (e.g. Powerloom Workers Union)
 Enterprise Unions
 (e.g. Tata Motors Employees Union)
 Industry Unions
 (e.g. UFBU - United Forum of Bank Unions)
 Regional Unions
 (e.g. SIFAA - The South India Film Artistes Association)
 National Federations
 (NFPE - National Federation of Postal Employees)
 International Federations
 (IFJ - International Federation of Journalists)
All About the Actors…
 Employer(s) and Associations
 General
 (e.g. Chamber of Commerce)
 Industry Associations
 (e.g. ATMA - Automotive Tyre Manufacturers Association)
 Regional Associations
 (e.g. EIMPA - Eastern India Motion Picture Association )
 National Associations
 (e.g. COAI - Cellular Operators Association of India)
 National Federations
 (e.g. CII – Confederation of Indian Industries)
 (e.g. FICCI – Federation of Indian Chamber of Commerce and Industry)
 (e.g. AOIE – All India Organization of Employers)
 International Associations
 (e.g. ICC – International Chamber of Commerce)
 (e.g. IOE - International Organisation of Employers)
All About Actors…
 Government
 Central & State Governments
 Government Agencies
 Legislature Agency (To Pass Laws)
 (e.g. State Legislative Assemblies)
 Executive Agencies (To Implement Laws / Labour Policy)
 (e.g. CIRM – Central Industrial Relations Machinery)
 Judiciary (To Adjudicate Disputes)
 (e.g. CGIT – Central Government Industrial Tribunal)
All About Actors…
 Society
 Customers
 Political Parties
 Media
 Educational Institutions
 NGOs
All About Actors…
 International Agencies
 International Monetary Fund, World Bank
 Amnesty International, International Labour Organization