INDUSRIAL RELATIONS

AND IT’S IMPACT ON AN

ORGANIZATION

NAME: SIDRA ARSHAD

STUDENT ID:BB-24970
C O U R S E N A M E : I N D U S T R I A L R E L AT I O N S A N D L A B O R
L AW S
C O U R S E C O D E : M G T- 6 0 6
INSTRUCTOR: SIR MAJOR NASIR
 Industrial relations:

IR can be defined as a coin having two faces: co- operation and
conflict.
The Industrial Relation relations also called as labor -
management, employee-employers relations. IR is dynamic and
developing socio-economic process.
Industrial Relation is that part of management which is
concerned with the manpower of the enterprise – whether
machine operator, skilled worker or manager.
The term industrial relations explains the relationship between
employees and management which stem directly or indirectly
from union-employer relationship.
Industrial relation is the relation in the industry created by the
diverse and complex attitudes and approaches of both
management and workers in connection with the management of
the industry.
History
Industrial relations has its roots in the industrial revolution which
created the modern employment relationship by spawning free
labor markets and large-scale industrial organizations with
thousands of wage workers. As society wrestled with these
massive economic and social changes, labor problems arose.
Low wages, long working hours, monotonous and dangerous
work, and abusive supervisory practices led to high employee
turnover, violent strikes, and the threat of social instability.
Intellectually, industrial relations was formed at the end of the 19th
century as a middle ground between classical economics and
Marxism,with Sidney Webb and Beatrice Webb's Industrial
Democracy (1897) being a key intellectual work.
Go!

INTRODUCTION
Industrial connection implies the connection among managers and
workers in course of work in modern associations. In any case, the
idea of Industrial Relations has a wide and thin importance.
From an expansive perspective, the term Industrial Relations
incorporates the connection between the different associations,
between the state and the associations just as those between the
different bosses and the legislature.
In the tight sense, it alludes to a wide range of connections among
boss and representatives, worker's organization and the board, works
and association and among laborers and laborers.
It additionally incorporates a wide range of connections at both formal
and casual levels in the association. Relations of every one of those
related in an industry might be called Industrial Relations
Aim of IR
To ensure discipline in the organization and in the industry.
To improve the bargaining capacity of the workers through
trade unions.
To safeguard the interests of the labor and the management
by preventing one of the players from getting a strong hold
over the other.
To develop & Secure mutual understanding & good
relationships among all the players in the industrial set-up.
Aim of the presentation
To provide a basic framework for the management & the employees to
resolve their differences.
To improve the standard of living of the average worker by providing
basic and standard amenities.
To increase productivity by minimizing industrial conflicts and
maintaining harmonious industrial relations.
To discuss the primary objective of industrial relations is to bring
about good and healthy relations between the two partners in the
industry i.e., the management and the labor.
Advantages of IR
Less Absenteeism

Workplace stress and conflicts are often the driving factors behind employee absenteeism. .
Assure your employees that you care about their safety and well-being. The way employees
feel comfortable at work and perform better also appraise the on their performance it
motivates them. Up to 48 percent of Americans experience abusive behavior at work and
peoples loose their interest in their jobs due to abusive language.

Strong employee relations

Strong employee relations have a positive impact on the company's growth and revenue.
People who feel motivated and engaged in the workplace do an excellent job in their
assigned roles, resulting in better products, greater customer satisfaction and increased
sales.
Disadvantages of IR
Economic causes:
Often poor wages and poor working conditions are the main causes for
unhealthy relations between management and labor. Unauthorized
deductions from wages, lack of fringe benefits, absence of promotion
opportunities, faulty incentive schemes are other economic causes.
Other causes for Industrial conflicts are inadequate infrastructure, worn-
out plant and machinery, poor layout, unsatisfactory maintenance etc.
Organizational causes:
Faulty communications system, unfair practices, non-recognition of
trade unions and labor laws are also some other causes of poor
relations in industry.
Social causes:
Uninteresting nature of work is the main social cause of poor
Industrial relations. Dissatisfaction with job and personal life
culminates into Industrial conflicts.
Psychological causes:
Lack of job security, non-recognition of merit and performance,
poor interpersonal relations are the psychological reasons for
unsatisfactory employer-employee relations.
Political causes:
Multiple unions, inter-union rivalry weaken the trade unions.
Defective trade unions system prevailing in the country has been
one of the most responsible causes for Industrial disputes in the
country.
McDonald's and industrial relations

MacDonald's France is widely represented in the decision-making

bodies of the National Fast-Food and Food Union (Syndicat national de
l'alimentation et de la restauration rapid, SNARR) employers'
organization, and thereby takes part in the collective bargaining
process. In addition to a 1988 basic collective agreement governing this
relatively new industry, collective bargaining in this sector has resulted
in several additional agreements between SNARR and the trade unions.
These include:
Contd.
•The agreement of 20 December 1996 on training, signed by the French Democratic
Confederation of Labor (Confédération française démocratique du travail, CFDT), the
French Confederation of Professional and Managerial Staff-General Confederation of
Professional and Managerial Staff (Confédération française de l'encadrement-
Confédération générale des cadres, CFE-CGC), CFTC and the General Confederation of
Labor-Force ouvrière (Confédération générale du travail-Force ouvrière, CGT-FO);
• The agreement of 5 March 1998 on the creation of a social action fund (signed by CFDT,
CFE-CGC, CFTC and CGT-FO);
•The agreement of 13 November 1998 on part-time working, guaranteeing workers a
minimum 20-hour week, except where workers expressly request fewer hours (signed by
CFDT, CFE-CGC, CFTC and CGT-FO);
•The agreement of 15 April 1999 on the 35-hour working week with no wage reduction for
full-time employees (signed by CFE-CGC, CFTC and the CGT-FO); and
•The agreement of 14 June 2000 on career development for specific categories of
employees (signed by CFDT, CFE-CGC, CFTC and CGT-FO).
Contd.
Although genuine collective bargaining does take place at sector level,
trade union activity is problematic in an industry characterized by high
employee turnover and restrictive management, where part-time
working is largely dominant. However, unionization has developed,
particularly among workers with several years of service, who are
generally older and with low-level qualifications. Unionization is also
characterized by the diversity of trade unions represented. In addition
to the five representative intersectoral union confederations, the
National Federation of Independent Unions (Union national des
syndicates autonomies, UNSA) is very widely represented in Paris
McDonald's fast-food outlets.
Contd.
There are also recurring problems between local union branches or
individual trade union delegates and the national trade unions to which
they are affiliated. On several occasions, delegates or even whole local
branches have switched their affiliation from one trade union to another.
Armand Gandji. one of the five workers threatened with dismissal from
the McDonald's outlet on Boulevard St Denis (and subsequently
reinstated) was a CFTC union delegate, who was planning to run as a
CGT candidate in upcoming workplace elections.

Trade union activity across McDonald's restaurants is also problematic

since some outlets are directly managed by McDonald's France, while
others are franchised to small and medium-sized companies. McDonald's
France was quick to point out that the Boulevard St Denis restaurant was
a franchise and consequently not managed by the company, even though
the current manager is a former McDonald's France executive.
Suggestions to Improve Industrial
Relations

Sound personnel policies: Policies and procedures concerning the

compensation, transfer and promotion, etc. of employees should be fair and
transparent. All policies and rules relating to Industrial relations should be fair
and transparent to everybody in the enterprise and to the union leaders.
Participative management: Employees should associate workers and unions
in the formulation and implementation of HR policies and practices.
Responsible unions: A strong trade union is an asset to the employer. Trade
unions should adopt a responsible rather than political approach to industrial
relations.
Employee welfare: Employers should recognize the need for the welfare of
workers. They must ensure reasonable wages, satisfactory working
conditions, and other necessary facilities for labor. Management should have
a genuine concern for the welfare and betterment of the working class.
Grievance procedure: A well-established and properly
administered system committed to the timely and satisfactory
redressal of employee’s grievances can be very helpful in
improving Industrial relations. A suggestion scheme will help to
satisfy the creative urge of the workers.
Constructive attitude: Both management and trade unions should
adopt positive attitude towards each other. Management must
recognize unions as the spokesmen of the workers’ grievances
and as custodians of their interests. The employer should accept
workers as equal partners in a joint endeavor for good Industrial
relations.
Creating a proper communication channel to avoid grievances
and misunderstandings among employees.
Education and training imparted to the employees.
Conclusion
It is obvious that acceptable IR is the premise of higher creation
with least expense and higher benefits. It additionally brings about
expanded proficiency of laborers. Great modern relations
decrease the mechanical debates. Mechanical relations has gotten
one of the most sensitive and complex issues of present day
modern culture. Mechanical advancement is inconceivable without
participation of works and agreeable connections. Subsequently, it
is in light of a legitimate concern for all to make and keep up great
relations between workers and businesses. Thus modern
connection measures followed ought to be given prime
accentuation which may prompt a viable connection among the
executives and representatives. A powerful modern connection
brings about the expansion of the efficiency of the association.
Thank you