1. HRM UNIT 03-PART I INDUSTRIAL RELATIONS Instructor: Surojit Chakraborty School of Humanities KIIT University Primary sources: Mamoria, Mamoria & Gankar; B.D. Singh

2. Modules  Concept & Meaning  Objective & Importance  Reason for Poor Industrial Relations

3. Industrial Relations: what it is  The term “industrial relations” is made up of two words-“industry” and “relations”.  “industry” means any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or the rendering of material services with a view to satisfy human wants. (State of Bombay v. Hospital Mazdoor Sabha, 1960)  “relations” refers to the workplace relationships between workmen and employers, between workmen and workmen, between employers and employers; as well as the relationships that the employers and workmen share with the institutions formed to promote their interests.

4. Dunlop’s System Theory IR = f (a, t, m, p, i) Where, a -> three actors shown in fig. 1 t -> technological context m-> market context p-> power context i-> ideological context that binds them together Government Workmen & their organizations Employers & their organizations Industrial Relations

5. Objectives of Industrial Relations  The Industrial Revolution led to the establishment of two distinct classes-the capitalist class and the working class.  Frederick W. Taylor was the first person to bring the workers into the ambit of production decisions with his scientific management principles.  IR got the much needed boost with the human relations revolution in the 1930’s brought on by Elton Mayo’s Hawthorne studies and the Wagner Act (1935).  The objectives of IR are threefold: i.Promotion of harmonious employer-workmen relations ii.Maintenance of industrial peace and avoidance of industrial conflicts iii.Establishment of industrial democracy

6. Importance of Industrial Relations i.Resolution of and reduction in industrial disputes ii.Increased morale of workforce iii.Reduction in absenteeism and turnover iv.Remove alienation of workforce v.Optimum use of scarce resources vi.Continuous production vii.Economic growth and development viii.Facilitates change

7. Reason for Poor Industrial Relations i.Economic factors: poor wages & working conditions etc. ii.Social factors: master-servant relationship etc. iii.Technological factors: poor rate of technological change etc. iv.Psychological factors: negative attitude of employer and low workmen morale etc. v.Political factors: political affiliation of trade unions etc. vi.Institutional factors: obsolete labour laws etc. vii.Global factors: international trade and labour agreements etc. viii.Organizational factors: lack of effective IR policies and practices etc. N.B. Other issues like negative workmen perception, despotic managers, changes in working conditions, lack of communication and grievance handling mechanisms etc.: all of these will come under one or the other of the 8 factors given above.

8. Effects of Poor Industrial Relations Effect on Workmen i.Loss of motivation and increase in dissatisfaction ii.Financial losses iii.Less role in decision making iv.Adverse effect on career Effect on Employers i.Disruption in production ii.Less Profit iii.Reduction in worker productivity iv.Rigid workforce v.Deviant workplace behaviour vi.Loss of reputation amongst consumers

9. Effects of Poor Industrial Relations…contd. Effect on Government i.Loss of revenue ii.Disruption of law and order iii.Can be held as proof of its inefficiency Effect on Consumers i.Rise in prices or worsening of quality or both ii.Scarcity of goods Other Effects i.Adverse effect on international trade ii.Violation of international agreements iii.Low rate of economic growth and development

10. Conclusion Harmonious industrial relations is of paramount importance for not only the parties directly involved, but also for the society and economy as a whole. N.B The conditions for good industrial relations will be taken up in a subsequent module

11. Thank You