INDUSRIAL RELATIONS

CONCEPT AND APPROACHES

PRESENTED BY: SANSKRUTI BALAPURE

 INDEX
 Introduction
 Parties in Industrial Relations
 Objectives
 Importance
 Factors affecting Industrial Relations
 Approaches
 Introduction
 Industrial relations is that field of study which analyses the relationship among the
management and the employees of an organization at the workplace and also
provides a mechanism to settle down the various industrial disputes.
 This concept evolved in the late 19th century because of the industrial
revolutions.
 According to JT Dunlop : “ Industrial Relations may be defined as the complex of
inter-relations among workers, managers & government. ”
 Industrial Relations can be defined as a coin having two faces:
Co-operation & Conflict. This relationship undergoes starting with co-
operation soon changes into conflict & after its resolution again changes
into cooperation.
 Parties in Industrial Relations
 Primary Parties
• Employees
• Employers
• Government

 Other Parties
• Trade Unions
• Courts and Tribunals
• International Labour Organization (ILO)
• Human Resource Function
 Objectives of Industrial Relations

1.Handling Grievance
Handling Grievance in industrial relations, process through which disagreements between
individual workers and management may be settled.

2.Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the part of both.

3.Employees Rights Protection

There are various labor laws enacted for benefits and betterment of working employees with
intension to safeguard the rights and interests of the employees, therefore effective
implementation is necessary.
4.Contract Interpretation
It emphasizes on providing necessary trainings to the supervisors and managers on the labor laws
and contracts to avoid misunderstanding or misinterpretation.

5.Boosting Morale
Emphasize on building employee’s confidence and boosting their morale to perform better .

6.Collective Bargaining
It is right of the employee provided by Constitution of India, it helps decision making by
discussions , the representative of workers and management can discuss their proposal with each
other, negotiate and conclude. It will reach to mutual decision and may be written in collective
bargaining agreement.

7.Increasing Productivity
It aims to improve efficiency and productivity of the organization, also it helps to ensure
employees long-term retention.
 Importance of Industrial Relations
1. Promotes democracy:
Industrial relations mean using collective bargaining to settle problems faced by workers. This
collective bargaining is usually achieved through mutual cooperation and mutual agreement
amongst all the affected parties i.e., democracy, management, and employee unions.

2. Economic growth and development:

Industrial relations can improve economic growth and development. This refers to the economic
conditions of workers in the existing state of industrial management and political government.

3. Boosts employee morale

It is important to note that Good industrial relations which are built-in mutual cooperation and a
commonly agreed approach motivate one to contribute one’s best, result in higher productivity
and hence income, give more job satisfaction and help improve the morale of the workers
which is an importance of industrial relations in HRM.
4. Avoids conflicts between management and unions:
Industrial relations result in reduced conflicts between unions and management. This is because
industrial relations involve setting up machinery to solve problems confronted
by management and employees through a mutual agreement that binds both these parties.

5.Initiates an environment for change:

Good industrial relations help in the improvement of cooperation, teamwork, performance, and
productivity and hence in taking full advantage of modern inventions, innovations, and other
scientific and technological advances.
 Factors Affecting Industrial
Relations
1.Individual Behavior
Every person has a different perception, background, skills, knowledge, experience and
achievements which influences an individual’s behavior. The employees, therefore, behave
differently in different situations, thus impacting the work environment in the organization.

2.Organizational Structure
The hierarchical structure creates more formal relationships among the employees belonging
to different hierarchical levels in an organization. Also, the delegation and execution of
decision-making power by the superior influences the industrial relations between the
managers and the employees.

3.Psychological Factors
An employee’s attitude and mentality towards the employer and the given task; and the
employer’s psychology towards the workers can be positive or negative, which ultimately
impacts the employee-employer relationship.
4.Leadership Style
Every manager possesses certain leadership traits and different style to function even in a formal
organization. Through his/her formal or informal ways of generating team spirit and motivating
the employees, he/she impacts the organization’s industrial relations.

5.Economic and Technical Environment

To cope up with the changes in the economic conditions or technology, organizations need to
restructure the task of the employees including their work duration, conditions and wages; which
leads to a difference in their behavior, attitude, adapting spirit, etc. towards the organization and
its people.

6.Legal and Political Environment

The legal framework and political circumstances influence the organization and its industrial
relations. It contributes to the framing of rules, rights, authority, powers, roles and
responsibilities of all the parties of the organization.
 Approaches Of Industrial Relation
1. Unitary:
The unitary approach is based on the strong argument that there is only one source of
authority i.e., the management, which owns and controls the dynamics of decision making
in issues relating to negotiation and bargaining.
2. Pluralistic:
The pluralistic approach totally departs from the unitary approach and
assumes that the organization is composed of individuals who form distinct
groups with their own set of aims, objectives, leadership styles, and value
propositions.
3.Marxist:
Also known as the ‘Radical Perspective’, the Marxist approach is based on the proposition
that the economic activities of production, manufacturing, and distribution are majorly
governed by the objective of profit. Marxists, like the pluralists, regard conflict between
employers and employees as inevitable
3.The Social Action Approach:
The social action approach of Weber has laid considerable importance to the
question of control in the context of increasing rationalisations and
bureaucratization.
Closely related to Weber’s concern related to control in organisation was his
concern with “power of control and dispersal”. Thus, a trade union in the
Weber’s scheme of things has both economic purposes as well as the goal of
involvement in political and power struggles.

4.Human Relations Approach:

In the words of Keith Davies, human relations are “the integration of people
into a work situation that motivates them to work together productively,
cooperatively and with economic, psychological and social satisfactions.”
According to him, the goals of human relations are – (a) to get people to
produce, (b) to cooperate through mutuality of interest, and (c) to gain
satisfaction from their relationships.
5.The Gandhian Approach:
Gandhiji can be called one of the greatest labour leaders of modern India. His approach to labour
problems was completely new and refreshingly human.He held definite views regarding fixation
and regulation of wages,organisation and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labour indiscipline, and
workers participation in management, conditions of work and living, and duties of workers.

6. Human Resource Management Approach:

The term, human resource management (HRM) has become increasingly used in the literature of
personnel/industrial relations. The term has been applied to a diverse range of management
strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable,
term for personnel or industrial relations management.