Refer Books, Elaborate The Points

INDUSTRIAL RELATION
Relation in general term means good understanding in normal life with each other. In the same
way good understanding between the employee and employer in industrial organization called as
Industrial Relations (IR) or Employer- Employee relation. Now it has been felt by all most all the
Industries that a better IR that resulted in high productivity for the organization and better wages
for the workers. On the other hand a strained relation between the employer-employee will lead
to strike, lock-out etc. Hence IR is considered to be an important concept in HRM.

DEFINITION:- Industrial Relation(IR) is concerned with the systems and procedures used by the
unions and management to determine the reward for effort and other conditions of employment,
to protect the interest of the employees and their employers and to regulate the ways in which the
employers treat their employees .

CHARACTERISTICS OF IR

 It is an outcome of employment relationship in an industrial enterprise.

 Develop the skills and methods of adjusting to and cooperating with each other.
 Creates complex rules and regulations to maintain harmonious relations.
 Involvement of government to shape the industrial relations through laws, rules, agreements,
awards etc.
 Important factors are, employees and their organisations, employer and their associations and
Government

FACTORS AFFECTING IR

 Institutional factors
 Economic factors
 Technological factors
 Social and cultural factors
 Political factors
 Governmental factors

THREE ACTORS OF IR

 Employees and their organisations :- Employees, often represented by trade unions or labor
organizations, are a vital component in industrial relations. They advocate for workers' rights,
negotiate for better wages, benefits, and improved working conditions, and represent the
collective voice of the workforce. They engage in collective bargaining, dispute resolution, and
work to ensure fair treatment and protection of workers' rights
 Employers and their organisations :- These are individuals or organizations representing the
management or ownership of a company or industry. They negotiate, manage, and make
decisions regarding labor-related matters, including wages, working conditions, and
employment contracts. Employers or their associations often engage in collective bargaining
with trade unions or workers' representatives
 Government :- Government play a crucial role in setting labor laws, regulations, and policies.
They create the legal framework within which industrial relations operate, establish minimum
labor standards, mediate disputes, and provide a platform for the enforcement of labor laws.
Government bodies can also intervene in labor disputes to ensure a fair resolution and
maintain industrial peace

OBJECTIVES OF IR :- IR of a country is in fawned a lot with political government .As Govt. changes
from time to time the objective of IR also changes . Broadly the objectives of IR is two categories .

I. Primary objective:
Primary objectives of IR have laid down in Industrial policy Resolution .These objectives are:-
A) Improve the economic condition of the workers.
B) State control over Industrial undertakings.
C) Socialization and Rationalization of Industries.
D) Create a proprietary interest among the workers.

II. Secondary / Auxiliary objectives:

A) Establish good relationship between employee and employer.
B) Avoid industrial conflict.
C) Enhance the economic for workers.
D) Provide an opportunity for workers to participate in the management.
E) Increase productivity in the organization.
F) Avoid unwarranted interference of the govt.
G) Establish Industrial Democracy on the basis of worker partnership.
H) Socialize the Industrial activity in the state.

FUNCTIONS OF IR
I. Communication is to be established between workers and the management in order to bridge
the traditional distrust between the two.
II. To establish rapport between managers and the managed.
III. To ensure creative contribution of trade unions to avoid industrial conflict and to safeguard
the interests of workers on the one hand and the management on the other hand, to avoid
unhealthy, unethical atmosphere in an industry.
IV. To lay down such considerations that may promote understanding, creative and co-
cooperativeness to raise industrial productivity, to ensure better workers participation.
IMPORTANCE OF IR:- In order to maintain a good and positive relations between the employee and
employers . IR plays a dominant role in the organizations. Their importances are as follows:-

I. Keep industrial peace

II. Promote industrial democracy
III. Reward for workers
IV. Benefit to management
V. Improves productivity

REASONS OF POOR IR:-There are different reasons for poor industrial relations in the industries.
The causes of poor IR due to economic, political personnel, legal considerations . Some reasons:

I. Nature of Work:- It is the work gives birth to good IR. Because job satisfaction for the
worker induces to remain absorb in work. Job dissatisfaction leads to frustration which
causes evil effects. Hence job design and job assignment among the employees should be
proper .
II. Dissatisfactory Compensation:- Workers work in the industry for compensation. If salary
and wage will not be a satisfactory for the employees they will not work proper.
Ssometimes the workers demand more and equitable wages compering to other
organizations . If not fulfilled the relation with the management will be bad and the result
in poor IR.
III. Inactive Trade Union :-In an industry Trade unions protect the interest of its workers but
due to inter-union rivalry, politicization the trade union remains disfunctionary. Hence it
loses the trust and faith of the workers which leads to poor IR with management.
IV. Un-Conducive Organization Climate:-Organizational climate refers to a set of characteristics
that describe the organization. It is basically the working environment provided in the
industry to its workers. A good and supportive work culture and condition induces a worker
to maintain good relation and adverse to it have poor IR in the organization.

HOW TO MAKE SOUND IR:- Sound IR is a necessity for the growth and development of the
organization. Developing and maintaining a good IR requires constant and deliberate effort
towards this direction. The following points should be looked into for maintaining a sound IR.
I. Mutual Trust:- It has been felt that trust between worker and management is the
foundation of developing sound IR in the organization. The management must have faith to
his workers and the workers must have to consider the management as reliable. This
mutual trust will be the yard stick for a sound IR system.
II. Democratic Trade Union:- Existence of a democratic trade union in an organization can
build a sound IR. Trade unions can bargain before the management regarding the interest
of the workers .Employees interest can be in terms of salary, wages working condition job
security and other benefits from time to time. A sound and democratic trade union can
able to do that which in turn can create sound IR in the organization.
 III. Industrial Peace:- It is said that peace brings prosperity and prosperity supports happiness .
In an organization peace is the primary requirement which can be established through
different ways. Industrial peace can be achieve through prevention and settlement of
Industrial dispute, evolving good personnel policy, code of conduct code of discipline
collective bargaining method participative management policy etc.
IV. Professional Approach :- Now in all most all the organizations give more importance
towards solve the employee problems . The sound IR depends on the problems solving
approach by the management. Persons having professional competence and approach
should be in charge of development of IR among the workers at work place.
V. Feedback and Control:-Continuous feedback and effective control over the existing
employees leads to sound IR .The control technique should be from the beginning, as some
small problems may create havoc in the long run. Some simple matter may be very
complicated if not dealt properly in appropriate time continuous feedback and timely
control can lead to sound IR in the organization.

The above points should be taken into consideration while maintain a sound IR in the
organizations. A sound IR will lead to prosperity and development in the organization.

APPROACHES TO INDUSTRIAL RELATION

i. Psychological Approach
ii. Sociological Approach
iii. Human Relation Approach
iv. Gandhian Approach
v. Dunlops Approach
vi. Marxist Approach
vii. Interactive outcome of HRM Approach