INDUSTRIAL RELATIONS

Multidisciplinary field

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Employment relations

Importance of non-industrial employment relationships

Many also equate IR to labour relations and believe that IR only studies unionized(forming a group) employment situations, but this Is an oversimplification(more simpler) Human relations refers to the whole field of relationship that exists bcoz of the necessary collaboration of men and women in the employment process of modern industry. It is that part of mgt which is concerned with the management of enterprise ±whether machine operator, skilled worker or manager. It deals with either the relationship btwn the state and employers & workers organisation or the relation between the occupational organisation themselves.
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IR
Science building
1.part of the social sciences

Problem Solving
1. IR seeks to design policies and institutions to help the employment relationship work better

Ethical

1. IR contains strong normative principles about workers & employment relationship, especially the rejection of treating the labour as a commodity in favor of seeing workers as human beings in democratic communities entitled to human rights

2.Understand employment relationship & its institutions through high-quality, rigorous research 3.IR scholarship intersects with scholarship in labor economics, industrial sociology, labor & social history ,HRM, political science, law, & other areas

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HISTORY
Roots
Industrial Revolution
producing free labor markets & large-scale industrial organizations with thousands of wage workers

massive economic and social changes

created the modern employment relationship

Labour problems

Low wages, long working hours, monotonous and dangerous work, and abusive supervisory practices

high employee turnover, violent strikes, and the threat of social instability

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HISTORY ± Intellectual & Institutional
‡ Industrial relations - end of the 19th century - as a middle ground btwn classical economics & Marxism, with Sidney Webb and Beatrice Webb¶s Industrial Democracy (1897) being the key intellectual work. IR thus rejected the classical econ John R. Commons academic industrial relations program

University of Wisconsin in 1920
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HISTORY ± Financial Support
John D. Rockefeller, Jr
(Financial support)

progressive labor-management relations

aftermath of the bloody strike at a Rockefeller-owned coal mine in Colorado

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HISTORY ± Chairs
Montague Burton
(Britain)
another progressive industrialist

@ Leeds, Cardiff & Cambridge in 1930

Formalized in 1950
endowed chairs in industrial relations

Allan Flanders & Hugh Clegg
formation of the Oxford School

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HISTORY ± Cont..
‡ Formed with a strong problem-solving orientation that rejected both the classical economists¶ laissez faire(Noninterference in the affairs of others) solutions to labor problems & the Marxist solution of class revolution. It is this approach that underlies the New Deal legislation in the United States, such as the National Labor Relations Act and the Fair Labor Standards Act.

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‡ Workplace Relations - the relationship btwn an employer & its employees that governs the employment & non-employment elements such as terms of employment, working condition, welfare, rights and obligation to each other, and so on. ‡ Purpose - unite the group of employees and employer as one big, happy family. ‡ Principle -behind the IR is the collective bargaining between the employee¶s union and the employer to achieve a collective agreement
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‡ IR is not the same as the Employment Act in the sense that the interaction process btwn an employer & the employees is not much bound to legal & technical aspect of an employment, but rather to achieve a compromise agreements and stands. ‡ IR executives & managers act as the middlemen btwn the union & the employers, and in an ideal world, they strike a balance between the two. ‡ Sometimes, the union fights hard and in response the employer would take a tough stance. As a result, negotiation stalls and the outcome can be potentially unhealthy. It¶s true they say strong worker¶s union can make the employer¶s life miserable and cripple the company¶s operation.
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Employee Relations
‡ Involves the body of work concerned with maintaining employer-employee relationships that contribute to satisfactory productivity, motivation, and morale. ‡ Employee Relations is concerned with preventing & resolving problems involving individuals which arise out of or affect work situations. ‡ Relationship of employees with the organization and with each other
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Advice to supervisors

correct poor performance & employee misconduct

progressive discipline and regulatory requirements

disciplinary actions and in resolving employee grievances and appeals

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promote a better understanding of management's goals & policies Information to employees to employees to assist them in correcting poor performance, on or off duty misconduct, and/or to address personal issues that affect them in the workplace.

applicable regulations, legislation, and bargaining agreements Advise to employees about their grievance and appeal rights and discrimination and whistleblower protections Free Powerpoint Templates

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‡ Developing,implementing,administering & analyzing the employer-employee relationship; ‡ performing ongoing evaluation of it; ‡ managing employee performance; ‡ ensuring that relations with employees comply with applicable federal, state and local laws and regulations; ‡ resolving workplace disputes

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‡ Include ‡ HR careers, ‡ communications, ‡ legal and regulatory issues, ‡ technology, metrics and ‡ outsourcing in the employee relations field, as well as effective employee relations practices and global employee relations issues ‡ Does not include matters involving ‡ union organizing, ‡ union elections, ‡ collective bargaining and ‡ ongoing union-management relations,
which are encompassed in the Labor Relations Discipline.
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Theories of IR
‡ System Theory ‡ Oxford Theory ‡ Structural Contradiction Theory ‡ Gandhian Theory ‡ Human Relations Theory Free Powerpoint Templates

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System Theory (by John Dunlop) 
Focuses on
± Participants in the process ± Environmental forces ± Output

And their inter-relationship.

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System Theory (contd.)
Environmental Forces (i) Market or Budgetary Restraints (ii)Technology (iii)Distribution of Power in Society Government Participants Union ± Management Outputs

Rules of the Workplace

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System Theory : Participants
The main participants are 
Workers and their organisations  Management and their representatives  Government agencies

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System Theory :Environment
Three types of environments Technological characteristics of workplace (Technological sub-system) The market or economic constraints (Economic sub-system) The µlocus¶ and µbalance of power¶ existing in society (Political sub-system)
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System Theory : Output
Output is the result of interaction of the parties/actors of the system which is manifested in the network of rules, country¶s labour policy and labour agreements etc. that facilitate a fair deal to workers.

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System Theory (contd.)
(Set of Ideas and Beliefs)

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The Oxford Theory
‡ Flanders ± Conflict is inherent ± Collective bargaining required ± CB central to IR system ± determined thro¶ rule making process of CB ‡ r = f (b) or r = f (c) where r ± rules governing IR b ± collective bargaining c ± Conflict resolved thro¶ CB ‡ Criticism ± too narrow (comprehensive for analysing IR) ± overemphasis political process of CB ± insufficient wt deeper influence in determination of rules
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‡ Emphasis rules, job regulation, institutions of job regulation as indicative of order orientation organisation ‡ Liberal-pluralist approach

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STRUCTURAL CONTRADICTION THEORY - Hyman(1971)
‡ Marxian analysis of IR + Trade union = Pessimistic & Optimistic approach ‡ Both represent structural contradictions ‡ Pessimistic approach ± Lenin, Michels, Trotsky ± limitations of trade union consciousness ± Working class + intellectuals = New social order
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‡ Optimistic approach ± Marx & Engels ± role of working class not only maintenance & enhancement of wage level but also carry class struggle against capital class thrust creating classless society ‡ Trade unions ± represent workers response to the deprivations inherent in their role as employees within a capitalist economy ± opposition & conflict can¶t be divorced from their existence & activity
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Cont..
‡ Inherent deprivation cause conflict of trade unions with employers in politico-economic structure ‡ Analysis ± focus on not only structure but also deprivations & socio-economic inequalities (inherent components of capitalist mode of production)

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Gandhian Approach
‡ Truth, Non-violence, Non-possession, Non cooperation (Satyagarah), trusteeship... ‡ Workers¶ right to strike. ‡ Concept of equality

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There is no room for conflict of interests between the capitalist and the labourers. ‡ But what IF conflicts occur...? o Should they go for strikes/lockouts...!

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Two things that Gandhiji expect from workers i. Awakening o Nurturing faith in their moral strength o Awareness of its existence

ii. Unity

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Gandhiji advocates
± Demands should be reasonable and through collective action. ± Avoid strikes as far as possible. ± Avoid formation of unions in philanthropic organisations. ± Strikes should be the last resort only. ± In case of organising a strike, workers should remain peaceful and non-violent.
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Human Relations Theory ± KEITH DEVIS
‡ Human are not inanimate or passive. ‡ Human are very complex to understand i.e. to manage. ‡ Integration of people into work-situation that motivates them to work together productively, cooperatively, &with economic, psychological & social satisfactions

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‡ Goals ± to get people to produce
± To cooperate through mutuality of interest ± To gain satisfaction from their relationships

‡ Highlights ± policies & techniques ± improve
employee morale, efficiency & job satisfaction ‡ Encourages small work group to exercise considerable control over its environment & in the process helps to remove a major irritant in labour-management relation.
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What Influences Human To Work
‡ Style of leadership Autocratic style Democratic style ‡ Motivation (satisfy the dissatisfied needs) Physiological needs (food, water, clothing, shelter) Safety needs (physical, finance and job security) Social needs (belonging, affection) Egoistic needs (self-esteem and esteem from others)
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