INDUSTRIAL & LABOUR RELATIONS

Unit - 1Industrial Relations: The changing

concepts of Industrial Relations, Factors affecting employee stability, Application

of psychology industrial relations.

WHAT IS INDUSTRIAL RELATION?

INTRODUCTIONWHAT IS INDUSTRIAL RELATIONS ?

Relationship between employers, employees and the trade unions

MULTIDISPLINARY FIELD THAT STUDIES THE EMPLOYMENT RELATIONSHIP

EMPLOYERS

TRADE UNIONSEMPLOYEES

• Industrial relations - multidisciplinary field that studies the employment relationship.

• A dynamic concept - depends upon the pattern of society, economic system and political set up of a country and changes with the changing economic and social order.

• Comprises of network of institutions – trade unionism, collective bargaining, employers, the , law and the state which are bound together by common values and aspirations.

• Increasingly being called employment relations or employee relations - because of the importance of non-industrial employment relationships.

• Refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”

• Explains the relationship between employees and management which stem directly or indirectly from union-employer relationship.

• A relation of Individual or group of employee and employer for engaging themselves in a way to maximize the productive activities.

Definition • J. Henry Richardson

"Industrial Relation is an art, the art of living together for purposes of production”.

• A/c to ILO (international labor organization) deal with either relationship between the state

and employers’ and workers organizations or the relations between the occupational organizations themselves

Definitions

• J.T. Dunlop - the complex interrelations among managers, workers and agencies of the governments.

• Dale Yoder - the process of management dealing with one or more unions with a view to negotiate and subsequently administer collective bargaining agreement or labour contract.

Labor management relation, employee employer relations, union management relations, personal relations, human relations and so on.

IR is the relationship between employees and management in the day - to - day working of industry .

IR describe relationships between management and employees or among employees and their organizations that characterize or grow out of employment.

NATURE OF IR• Concerned with relationship of

management and workers.

• To protect the interests of employees

• Concerned with systems, rules and

procedures used by unions & employees

• Role of regulatory mechanism in

resolving any industrial disputes.

OBJECTIVES OF IR• To facilitate production and productivity• To safeguard the rights and interests of both

labour and management by enlisting their co-operation

• to achieve a sound, harmonious and mutually beneficial labour management relations

• To avoid unhealthy atmosphere in the industry, especially work stoppages, go slows, gheraos, strikes, lockouts

• to establish and maintain industrial democracy.

THREE MAIN ACTORS

WORKERS AND THEIR

ORGAINZATIONS (TRADE UNIONS)

GOVERNMENT

EMPLOYERS & THEIR

ORGANIZATIONS

IMPORTANCE OF IR• Uninterrupted production • Reduction in Industrial Disputes • High morale• Mental Revolution• Reduced Wastage • Economic growth and Development

good industrial relations is the basis of higher

production with minimum cost and higher profits. results in increased efficiency of workers

CHANGING APPROACHES OF IR

Approaches to Industrial Relations

• Psychological approach • Sociological approach • Human relations approach

Psychological approach • The problems of IR have their origin in the perceptions of

the management, unions and the workers. • The conflicts between labour and management occur

because every group negatively perceives the behaviour of the other i.e. even the honest intention of the other party so looked at with suspicion.

• The problem is further aggravated by various factors like the income, level of education, communication, values, beliefs, customs, goals of persons and groups, prestige, power, status, recognition, security etc are host factors both economic and non-economic which influence perceptions unions and management towards each other.

• Industrial peace is a result mainly of proper attitudes and perception of the two parties.

Sociological approach • Industry is a social world in miniature. • The management goals, workers’ attitudes, perception of change in

industry, are all, in turn, decided by broad social factors like the culture of the institutions, customs, structural changes, status-symbols, rationality, acceptance or resistance to change, tolerance etc.

• Industry is inseparable from the society in which it functions. • Through the main function of an industry is economic, its social

consequences are also important such as urbanization, social mobility, housing and transport problem in industrial areas, disintegration of family structure, stress and strain, etc.

• As industries develop, a new industrial-cum-social pattern emerges, which provides general new relationships, institutions and behavioural pattern and new techniques of handling human resources. These do influence the development of industrial relations.

Human relations approach• Human resources are made up of living human beings. • They want freedom of speech, of thought of

expression, of movement, etc. • When employers treat them as inanimate objects,

encroach on their expectations, throat-cuts, conflicts and tensions arise.

• In fact major problems in industrial relations arise out of a tension which is created because of the employer’s pressures and workers’ reactions, protests and resistance to these pressures through protective mechanisms in the form of workers’ organization, associations and trade unions.

FORMER APPROACHES

INDUSTRIAL RELATIONS

UNITARY APPROACH

PLURALISTIC APPROACH

MARXIST APPROACH

CURRENT APPROACHES

• FORMULATING EMPLOYEE FRIENDLY LAWS• FRAMING TRANSPARENT HR POLICIES• PROVING BETTER WORKING FACILITIES FOR

THE EMPLOYEES• MAKING THE EMPLOYEES INVOLVED IN

MANAGEMENT DECISIONS.

Factors affecting employee stability

• Working condition• Poor compensation strategies• Poor job matching • Less communication between employee and

managers.• Poor employee evaluation techniques• Ineffective HR policy

Application of psychology to IR

• FOR BETTER UNDERSTANDING OF THE HUMAN BEHAVIOUR.

• HELPS TO SOLVE PROBLEMS AT WORK PLACE• HELPS TO IDENTIFY THE TRAINING NEEDS OF

THE EMPLOYEES• HELPS TO ENHANCE QULAITY OF WORK LIFE• HELPS TO DEVELOP PERFORMANCE

MEASURES

ANY QUERIES?

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