UNIT - I

Industrial Relations Concept and Scope: Importance,

key actors in IR, approaches to IR, factors affecting
IR, prerequisites for successful IR.
INDUSTRIAL RELATIONS MEANING:

• The concept of industrial relations means the relationship between employee’s

and management in the day-to-day working of industry.
• IR is a “set of functional interdependence involving historical, economic, socio
psychological, demographic, technological, occupational, political and legal
variables.”
• According to Dale Yoder, IR is a “whole field of relationship that exists because of
the necessary collaboration of men and women in the employment process of an
industry.”
• According to ILO, “IR deals with either the relationship between the state of
employers’ and workers’ organizations or the relation between the occupational
organizations themselves.
• The concept of IR had been extended to denote the relations of the state with
employers, workers and their organizations.
CHARACTERISTICS OF IR:
• Industrial Relations are outcome of employment relationship in an industrial
enterprise.

• IR develop the skills and methods of adjusting to and cooperating with each other.

• IR system creates complex rules and regulations to maintain harmonious relations.

• The Government involves to shape the industrial relations through laws, rules,
agreements, awards, etc.

• The important factors of industrial relations are employees and their organizations,
employer and their associations and government.
FACTORS AFFECTING OF INDUSTRIAL RELATIONS:

• Institutional Factors

• Economic Factors

• Technological Factors

• Social – Cultural Factors

• Political Factors

• Governmental Factors
 THREE ACTORS OF INDUSTRIAL RELATIONS

Actors of
IR

Workers Employers Government

IMPORTANT PRINCIPLES OF IR:

• Recognition of the dignity of the individual and of his right to personal freedom
and equality of opportunity.

• Mutual respect, confidence, understanding, goodwill and acceptance of

responsibility on the part of both employer, management and workers and their
representatives in the exercises of the rights and duties in the operation of the
industry.

• Similarly, there has to be an understanding between the various organizations of

employers and employees who represents the management and workers.
SCOPE OF INDUSTRIAL RELATIONS:

IR are relation between employee and employer in their day-to-day work. Hence, it
is continuous relationship. The scope of IR includes:

• Relationship among employees, between employees and their superiors or

managers.
• Collective relations between trade unions and management. It is also called as
union-management relations.
• Collective relations among trade unions, employers’ associations and
government.
Objectives of IR:
• To promote and develop congenial labour management relations.
• To enhance the economic status of the worker by improving their wages,
benefits.
• To regulate the production by minimizing industrial conflicts through state
control.
• To socialize industries by making the government as an employer.
• To provide an opportunity to the workers to have a say in the management and
decision making.
• To improve workers’ strength with a view to solve their problems through mutual
negotiations and consultation with the management.
• To encourage and develop trade unions in order to improve the worker’s
strength.
• To avoid industrial conflict and their consequences.
• To extend and maintain industrial democracy.
CONDITIONS FOR CONGENIAL IR OR PREREQUISITES OF IR:

The establishment of good industrial relations depends on the constructive attitude

on the part of both management and the union. It is very difficult to promote and
maintain sound IR.
• Existence of Strong, Well Organized and Democratic Employees’ Unions.
• Existence of Sound and Organized Employers’ Unions.
• Spirit of Collective Bargaining and Willingness to Resort to Voluntary Organization.
• Maintenance of Industrial Peace.
• Top Management Support
• Sound Personnel policies
• Adequate Practices
• Detailed Supervisory Training
APPROACHES TO IR:

IR issues are complex and multifarious. They are the results of social, cultural,
economic, political and governmental factors. The study of industrial relations should be
from the multidisciplinary approach.

• Psychological Approach to IR
• Sociological Approach to IR
• Human Relations Approach to IR
• Gandhian Approach to IR
• Dunlop’s Approach
• Interactive Outcome of HRM Approach