UNIT 1

Conceptual Framework of
Employment Relation
 Q.1) Explain concept of industrial relation with evalution and philosophy industrial relation ?
Ans :
• Industrial relation:
Introduction-
The term ‘Industrial relations’ is made up of two words-‘Industry’ and ‘Relations’ where ‘Industry’ denotes
a fruith and creative activity that involves individuals or group og people and ‘Relations’ denotes association
between employer and employee,employee and employee, labour union and management ,organization and
society,etc., which exists in the industry. Therefore,industrial relation is the relationship between the employees
and management which is a direct result of the union-employer relationship.

Defination:
 
According to Prof .Dunlop :
“Industrial relation may be defined as the complex of
inter-relation among workers,managers and government”.
 
According to dale Yoder:
“Industrial relations are a relationship between management and employees or
among employees and their organization that characterize and grow out of employment”.
 
 
  Evalution and Philosophy industrial relations:

1. The origin of industrial relation lies in the employer –employee relationship .The moment
worker are divorced from any ownership of the instruction, material and means of production,
they become wages earners depending for their livelihood upon wages alone.
2. The people who own the instrument and materials of production become their employers and
own the product.
3. In the beginning of the modern industrial society, the economic system consisted of a
large number of small competitive businesses and industrial establishments, each employing
a small number of workers.
4. The relationship between an employer and his employees was informal, personal and intimate
,but with the growth of the giant-sized joint-stock companies and business corporative,
each employees is no longer intimate and informal.
5. Formal institutions have grown up to regulate this relationship .Such factors as the intervention
of the state ,the growth of trade unions and their federation, employers’ associations, the growth
of sciences of personnel management, industrial psychology and industrial sociology have
to all tended to influence the spirit and the course of the relationship between employes
and employees.
6. These factors have changed the nature of the employer-employee relationship and have
converted this private relationship into a relationship of public importance, affecting the welfare
of the community as a whole.
 Q.2)Define industrial relation.Explain Gandhian approach of industrial relation?
Ans:

 Industrial relation:

Introduction-
The term ‘Industrial relations’ is made up of two words-‘Industry’ and ‘Relations’ where
‘Industry’ denotes a fruith and creative activity that involves individuals or group og people and ‘Relations’
denotes association between employer and employee,employee and employee, labour union and management
,organization and society,etc., which exists in the industry. Therefore,industrial relation is the relationship between the
employees and management which is a direct result of the union-employer relationship.

Defination:

According to Prof .Dunlop :

“Industrial relation may be defined as the complex of inter-relation among workers, managers and
government”.

According to dale Yoder:

“Industrial relations are a relationship between management and employees or among employees and
their organization that characterize and grow out of employment”.
 • Gandhian approach of industrial relation:

Gandhi believed that all money and property originally belongs to society and those who are possessing it are
only the trustees of the society whose duty is to increase the earning and value of the trust property. He should charge
only that much from the trust property as is absolutely essential for his subsistence and honorable living. Excess of
one’s income over and above one’s is a social surplus to be employed for the benefit of the society. Breach of trust is a
crime and is punishable under law.
Under the trusteeship theory of Gandhi certain limited property rights are admissible. The Trusteeship
theory of Gandhi does not recognize the inherent, unrestricted, irresponsible and absolute right of private property.
In accordance with Gandhi’s theory of trusteeship, there must be parity between the remuneration of the
trustees and the workers and should normally not be more than the latter. The managerial skills of the trustees, the talents
and expertise of labor were neither to be exploited nor used to sub-serve vested interests of the law.
On the contrary, society as a whole must derive the benefits. Such a theory of trusteeship, not contrary to the
interests of the capitalist but it sought common good through a proper utilization of their experience and talent. For Gandhi,
trusteeship involved the building of consensus of a society for implementing it for social good.
Gandhi wanted that the rich should become the trustees of the society by sharing their surplus wealth with the
poor and under- privileged. Gandhi was deeply influenced by Ruskin’s Unto This Last and he was of the firm opinion that
by nature all human being were equal and there should not be any economic discrimination or disparity among
different individuals in respect of income, consumption and other bare necessities of life.
 • Effect of Gandhian Approach on management:

Gandhian approach effected the management in following ways:

• Gandhian approach to labour problems was completely new and refreshingly human.There were definite
views regarding fixation and regulation of wages ,organization and function of trade unions,necessity and
desirability of collective bargaining, use and abuse of strikes, labour indiscipline,worker’ participation in
management, condition of work and living and duties of workers.
• The Ahmedabad Textile Labour Asscoiation, a unique and successful experiment in Gandhian trade
unionism implemented many of this ideas, Gandhi ji’s concept of trusteeship is a significant contribution
in the sphere of industrial relations.
• This approach forces the management to achieve economic equality for the worker in a capitalist society
by non- violent means.
• This approach is basd on trusteeship hence help the management in stagnating or stimilatingeconomic
and social progress of the country.
 Q.3) Describe constitutional and legal framework of industrial relation?
• Ans:
Constitutional Fremework of industrial relation:
• The Indian Constitution contains important provisions which have a direct bearing on the course of social and
labour legislation in the country.
• These are mainly incorporated in the Fundamental rights and Directive Principles of State policy.Fundamental
Rights are justicible.
• The Directive principles,throught not justiciable, are “fundamental in governance of the country” and it is “the
duty of the state to apply these principles in making laws”.
• These principles lay down that the state should strive to promote welfare of peple by securing and protecting as
effectively as it may, a social order in which social, economic and political, shall inform all institutions of
national life.
Foundamental Rights:
Some of the fundamental rights are as follows:
• Right to Equality-
The state shall not discriminate against any citizen on grounds only of religion, race, caste, sex, place of birth
or any of them.No citizen shall, on these grounds be subject to any disability,liability,restriction or condition with
regard to access to shop, public restaurants, hotels and places of public entertainment or the use of wells, thank, bathing
ghats, roads and places of public resort maintanined wholly or party out of state funds, or dedicated to the use of the
public.
• Right to Freedom-
All citizens shall have the right to freedom of speech and expression and to form association or unions and to
practice any profession or to carry on any occupation,trade or business.
 • Right against Exploitation-

Traffic in human begings and ‘bear’ and other similar forms of forced labour are prohibited and any
contravention of this provision shall be an offence punishable in accordance with law.
Legal framework of industrial relations:
1 .Industrial relations system are founded on a framework of labour law which exerts an influence on the
nature of the industrial relation system.
2. The laws of the land effectively influence industrial relations in a region, location, slate or even the whole
of the country.
3. Unbiased enforcement of labour laws through various governmental agencies and the judiciary may
contribute significantly for the overall improvement and sustenance of fair practices.
4. The constitution of india has placed the subject of ‘Lobour’ in the Concurrent List.Both the central and the
state governments may enact laws relating to labour.However,the provisions of the Central Acts would
prevail in case of dispute between the Central and State Acts.
 Q.4)Define the concept of industrial relation and also explain it’s scope and objective?
Ans:
• Industrial relation:
Introduction-
The term ‘Industrial relations’ is made up of two words-‘Industry’ and ‘Relations’ where ‘Industry’
denotes a fruith and creative activity that involves individuals or group og people and ‘Relations’ denotes association
between employer and employee,employee and employee, labour union and management ,organization and
society,etc., which exists in the industry. Therefore,industrial relation is the relationship between the employees and
management which is a direct result of the union-employer relationship.
Defination:
According to Prof .Dunlop :
“Industrial relation may be defined as the complex of inter-relation among workers,managers and
government”.
According to dale Yoder:
“Industrial relations are a relationship between management and employees or among
employees and their organization that characterize and grow out of employment”.
Scope of industrial relation:
Scope of industrial relation

Participative management

Dispute Settlement

Trade Unions

Employers Organisation

Collective Bargaining

Labour Legislation

Grievance Redressal
 • Participative Management::
Participative Management is also knows as Participatory Management or participative decision-
making or employee involvement.
 
• Dispute Settlement:
Any discrepancy in industrial relations can give rise to industrial dispute. It can be in the form of
strikes, protests,lock-outs, cutback, firing of employees,etc.
 

• Trade Unions:
Trade unions is a long-lasting association created by employees in oeder to gain benefits out of the
industry .It is a permanent association of workers formed with the aim of enhancing and sustaining their working
environment.
• Employers’ Organisation:
Employers’ Organisation are made up of business enterprises and are the most important players in
industrial relation. In India, the Council of India Employers and All India Organisation of Employers are the major
associations for Indian employers.
• Collective Bargaining:
If a country strives for economic growth, maintaining industrial harmony and peace is important. Industrial
harmony refers to an atmosphere of perfect understanding, acceptance and a sence of paternershp among the worker and
capital.
• Labour Legislation:
In order to improve health and welfare of workers, labour legislation came into existence.
• Grievance Redressal:
Emploee’s grievances are connected to the contract,work rule or regulation,policy or procedure,
health and safety regulation, past practice, changing the cultural norms unilaterally, individual victimization,
wages,bouns,etc.
 Objective of Industrial Relations:

Following are the objectives of industrial relation:

• To safeguard the interest of labor and management by securing the highest level of mutual understanding and
good-will among all those sections in the industry which participate in the process of production.

• To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the
productivity of workers and the industrial progress of a country.

• To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover
and frequency absenteeism.

• To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of
profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit
of the industry and of the country as well.

• To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved
living and working conditions, said fringe benefits.

• To improve the economic conditions of workers in the existing state of industrial managements and political
government.

• Socialization of industries by making the state itself a major employer .

• Vesting of a proprietary interest of the workers in the industries in which they are employed.
 Q.5) Causes of industrial relation and measure for Improving industrial relation?
Ans:

• Cause of industrial relation:

1.Nature of work:
It is the work only that gives birth to relationship between the employee and employer. A good
work i.e., work interesting to the employee fosters good IR. The reason being an employee interested in his work remains
absorbed in his/her job. This results in job satisfaction. On the contrary, a work not interesting to the e mployee breeds bad or
poor IR.

2. Dissatisfactory Compensation and Work Conditions:

Employees work for compensation i.e., wages and salaries. Often, compensation as low and working
conditions as poor viewed by employees become an important reason for poor IR. Employees often demands for equity,
i.e., wages equal to what the employees of other organisations are getting in the region, industry, etc. Not fulfillment of
such demands is interpreted as employee exploitation by the management.

3.Dysfunctional Trade Union:

Essentially, trade unions are meant to protect the interests of its members. The ongoing trade
union system in India is characterised by politicization, multiplicity, and inter-union rivalry. These often lead
trade unions dysfunctional and ineffective in playing their roles. The unions are used as a means to serve the
purposes of a few (leaders) rather than working in the wider interest of the employees. As such, these unions
lack workers faith and trust in their functioning. This breeds discontent among the employees and their
relationship with management also gets worsen.
 4.Non-conducive Organisation climate:
Organisational climate essentially emphasises work environment. It consists of a set of
characteristics that describe an organisation, distinguish it from other organisations, are relatively enduring over time, and
influence the behaviour of people in it. Organisational climate affects organisational processes and behaviour in more than
one ways.

• Measure for Improving Industrial relation:

The following measures may be adopted to achieve better industrial relations:

• Strong and Stable Union:

A strong and stable union in each industrial enterprise is essential for good industrial relations. The
employers can easily ignore a weak union on the plea that it hardly represents the workers. The agreement with
such a union will hardly be honored by a large section of workforce. Therefore, there must be strong and stable
unions in every enterprise to represent the majority of workers and negotiate with the management about the t
erms and conditions of service.

• Mutual Trust:
Both management and labor should help in the development of an atmosphere of mutual
cooperation, confidence and respect. Management should adopt a progressive outlook and should recognize the rights of
workers. Similarly, labor unions should persuade their members to work for the common objectives of the organization.
Both the management and the unions should have faith in collective bargaining and other peaceful methods of settling
disputes.
 Workers’ Participation in Management:
The participation of workers in the management of the industrial unit should be encouraged by making
effective use of works committees, joint consultation and other methods. This will improve communication between
managers and workers, increase productivity and lead to greater effectiveness.

Mutual Accommodation:
. The employers must recognize the right of collective bargaining of the trade unions. In any organization,
there must be a great emphasis on mutual accommodation rather than conflict or uncompromising attitude. One
must clearly understand that conflicting attitude does not lead to amicable labor relations; it may foster union
militancy as the union reacts by engaging in pressure tactics. The approach must be of mutual “give and take
rather than “take or leave.” The management should be willing to co-operate rather than blackmail the
workers.

Sincere Implementation of Agreements:

The management should sincerely implement the settlements reached with the trade unions. The
agreements between the management and the unions should be enforced both in letter and spirit. If the
agreements are not implemented then both the union and management stop trusting each other. An environment of
uncertainty is created. To avoid this, efforts should be made at both ends to ensure the follow up of the
agreements.
 Sound Personnel Policies:
The following points should be noted regarding the personnel policies. The policies should
be:

Formulated in consultation with the workers and their representatives if they are to be
implemented effectively.
Clearly stated so that there is no confusion in the mind of anybody.
Implementation of the policies should be uniform throughout the organization to ensure fair
treatment to each worker.

Government’s Role:
The Government should play an active role for promoting industrial peace. It should make law for the
compulsory recognition of a representative union in each industrial unit. It should intervene to settle disputes if the
management and the workers are unable to settle their disputes. This will restore industrial harmony.

Progressive Outlook:
There should be progressive outlook of the management of each industrial enterprise. It should be
conscious of its obligations and responsibilities to the owners of the business, the employees, the consumers and
the nation. The management must recognize the rights of workers to organize unions to protect their economic
and social interests.