INDUSTRIAL RELATION

Meaning, Nature, Importance and Scope of

Industrial Relation

Presented by

Siddarth Gurung
Roll No- 04
MSW-HR
 • The relationship between employer and employee or
trade union is called Industrial Relation

• Also known as employment relations

• It emerge in a work situation

MEANING • Industrial Relation covers:
i. Economic Exchange Process
ii. Social Relationships
iii. Controls, norms and institutions emerging from
social relationships
 Definitions
• DALEYODER, “Industrial Relation represents the whole field of relationships that exist due to
collaboration of men and women at work place during employment process.”

• HENRY RICHARDSON, “Art of working together which focuses upon achieving production
targets, efficiency, human well being and progress of economy and industry.”

• International Labour Organisation, “Industrial Relations deal with either the relationships
between the state and employers’ and workers’ organizations or the relation between the
occupational organizations themselves”
 From the definitions, we understand that:
• Industrial relation is an outcome of employer-employee relationship in an organisation

• Industrial relation facilitates harmonious relationships in an organisation by setting a framework for the
management and employees

• Industrial relations is based on the mutual compromise and adjustment, for the benefit of both the parties
involved

• The state and the legal system also have a role to play in the maintenance of a conflict-free industrial
environment

• The different parties in the system with a well-defined role are the management, the employees and the
union.
 Co-operation and Conflict are central to Industrial Relation

Industrial Relation is Multi-dimensional

Industrial Relation is inter-disciplinary

Features Industrial Relation exist in various levels

Industrial Relation is dynamic in nature

Involves various kinds of possible interaction

Process of creating ‘rules of behaviour’

Requirement of conscious efforts

 Joint consultative relation
IR between employer and between employer and
employee employees organisation

Scope of IR
Collective relation between Part played by state in
employer’s organisation and regulating these relations
employee’s organisation
 • Includes the study of workers, trade unions,
management, employer association and state
institutions (parties of IR)

• Focus on both short term and long term

Scope of IR interests of all

• Works for competitiveness, productivity,

market share, wealth of enterprise, enterprise
building, sustainability
 Increasing scope of IR
• Demand of rights by unorganised workers (SEWA, NGOs)

• Environment emphasis (Green jobs)

• Quality of jobs (decent jobs)

• Social matters
 Shift in the scope of IR
TRADITIONAL MODERN

• Fixed and time-bound • Variable and performance linked

compensation incentives
• Economic security and employability
• Employment security
• Cooperation and compounding litigation
• Conflicts and litigation
• Interactive working
• Autocracy
• Values, norms and facilitation
• Control and supervision
• Bipartism (workers and management)
• Tripartism (workers, management • Long-term (ESOP)
and state)
• Short-term and immediate cause
Boat’s approach to IR

• My boat

• Our boat

• Your boat
 Role of State in IR
LEGISLATURE EXECUTIVE JUDICIARY

Supporting unionism (even political Separate administrative machinery on labour Acts as the real guardian of worker
affiliation administration from macro to micro level

Putting workers cause into labour laws
Moral appeal by legislature
E.g.- affirmative action for weaker section
of the society, industrial truce revolution in
1947 & 1962
Various labour legislations such as
minimum wages, payment of bonus act etc.
Continuous monitoring and control over
labour issues
Has standardized most of the terms and
conditions of employment
Also working for the cause of employer in
case of unjustified strikes, gherao,
indiscipline, industrial sickness etc.

Highly facilitative
Level playing field
Permit the mutual adjustment
Intervene when required