Introduction and Concepts of Industrial Relations

Meaning The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.” According to Prof. Dunlop- “ Industrial Relations can be defined as the complex of interrelations among workers, managers and government.”

According to Encyclopedia Britannica- “ Industrial relations include individual relations and joint consultation between employers and work people at the place of work, collective relations between employees, employers and organizations, and the trade unions and part played by the state in regulating these relations.”

Different Interests & effectiveness - job security Employer • Employee - efficiency - pay & effectiveness - job security - productivity - career development - profit These interests are not assumed to be equal. Therefore will lead to conflict  Disputes

Objectives of Industrial Relations To maintain industrial peace or harmony. To safeguard the interests of labour and management. To enhance economic status of workers. To avoid as far as possible industrial conflict. To extend and maintain industrial democracy. To help the economic development of the country. To encourage collective bargaining as a means of self-regulations.

Objectives of Industrial Relations To help maintaining discipline amongst workers. To maintain and develop good employer and employee relation. To facilitate smooth operation by minimizing conflicts. To help union and management to develop constructive attitudes to each other. To reduce absenteeism and turnover , thus raise productivity to a higher level.

Importance of Industrial Relation Uninterrupted production Reduction in Industrial Disputes High morale Mental Revolution Reduced Wastage

Scope of Industrial Relations Relationship between employees and their supervisor or managers. Joint relations between trade union and management. It is called union management relations. Collective relations am0ng trade unions, employers and government.

Three Actors of Industrial Relations Workers: The total workers play an important role in industrial relations. The total workers include working age, educational background, family, psychological factor, social background, skills, attitude toward other workers etc. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions. Contd.

Three Actors of Industrial Relations Employer: Employer is a crucial factor in industrial relation. He employs the worker, pays the wages and various allowances, regulates the working relations through various rules, regulations and by enforcing labour laws. Government: Government plays a balancing role as a custodian of the relation. Government extents its influence on industrial relation through its labour policy, industrial relation policy, implementing labour laws, the process of conciliation and adjudication by playing the role of mediation etc.

Principles of Sound Industrial Relation 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 worker and their representatives in the exercises of the rights and duties in the operation of the industry. There has to be an understanding between the various organizations, employers and employees who represent the management and workers.

Theoretical Perspectives of IR Unitary perspective In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. contd.

Theoretical Perspectives of Trade Union Pluralist perspective In pluralism the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the pluralistic perspective are the management and trade unions. Contd.

Theoretical Perspectives of Trade Union Marxist/Radical perspective This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this background. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system.