Industrial Relation 1

Industrial Relations
Content
Meaning & concept

Definition
Objective of IR
Importance of IR
Role of three actors
Causes for poor IR
Developing sound IR
Code of conduct/discipline
Objective of code of discipline

Principle of code of discipline
Approaches of IR
Parties to IR
MEANING & CONCEPT
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.
Concept
The term industrial relations explains the relationship between

employees and management which stem directly or indirectly from
union-employer relationship.
Industrial relations are the relationships between employees and

employers within the organizational settings.
The relationships which arise at and out of the workplace generally

include the relationships between individual workers, the
relationships between workers and their employer, the relationships
between employers, the relationships employers and workers have
with the organizations formed to promote their respective interests,
and the relations between those organizations, at all levels
The term industrial relations has a broad as well as a narrow outlook.
Originally, industrial relations was broadly defined to include the
relationships and interactions between employers and employees
The relationships which arise at and out of the workplace

generally include the relationships between individual
workers, the relationships between workers and their
employer, the relationships between employers, the
relationships employers and workers have with the
organizations formed to promote their respective interests,
and the relations between those organizations, at all levels.
industrial relations also includes the processes through
which these relationships are expressed (such as,
collective bargaining, workers participation in decisionmaking, and grievance and dispute settlement), and the
management of conflict between employers, workers and
trade unions, when it arises.
DEFINITIONS
The Industrial Relation relations also called as
labor - management, employee employers
relations.
1)
2)
Employer-employeerelationshipsthat are
covered specifically undercollective
bargainingandindustrialrelationlaws.
Concerned with the systems, rules and
procedures used by unions & employers to
determine the reward for effort & other
conditions of employment.
Parties to IR
Trade
Employers
Union
Employees
Employee
Employers
Associations
Government
EmployerIndustrial
Employee
Relations
Relations
Employer
Associations
Courts &
Tribunals
OBJECTIVES
1.
2.
3.
4.
5.
To safeguard the interest of labor and management by

securing the highest level of mutual understanding and
good-will among all those sections in the industry which
participate in the process of production.
To avoid industrial conflict or strife and develop harmonious
relations,.
To raise productivity to a higher level in an aera of full
employment by lessening the tendency to high turnover and
frequency absenteeism.
To improve the economic conditions of workers in the
existing state of industrial managements and political
government
To Protect management and labor interests by securing
mutual relations between the two groups.
1.
2.
3.
4.
To Avoid disputes between management and labor,

and create a harmonizing relationship between the
groups so productivity can be increased.
Ensure full employment and reduce absenteeism,
hence, increasing productivity and profits.
To Provide better wages and living conditions to
labor, so misunderstandings between management
and labor are reduced to a minimum.
To bring about government control over plants
where losses are running high, or where products
are produced in the public interest.
IMPORTANCE
Uninterrupted production
Reduction in Industrial Disputes
High morale
Mental Revolution
Reduced Wastage
Foster Industrial Peace
Promote Industrial Democracy
THREE ACTORS TO IR
EMPLOYEES
STATE
EMPLOYER
ROLE OF THREE ACTORS TO IR

Role of Employee:
To redress the bargaining advantage on one-on-on

basis
To secure better terms and conditions for their
members
To obtain improved status for the worker in his/her
work
To increase implementation of democratic way of
decision making at various levels
Role of Employers
Creating and sustaining employee motivation
Ensuring commitment from employees
Negotiating terms and conditions of employment

with TU leaders
Sharing decision making with employees
Role of State:
Labor policies
Labor laws
Industrial tribunals
Wage boards
Industrial relations policy
Factors affecting IR
Institutional Factors
Economic Factors
Social Factors
Technological Factors
Psychological Factors
Political Factors
Enterprise related factors
Global factors
CAUSES FOR POOR IR

The main reasons are as follows:
An attitude of contempt towards the workers on the part of the
management.
Inadequate fixation of wages or improper wage structure.
Indiscipline
Unhealthy working conditions at the workplace.
Lack of human relations skills on the part of supervisors and

managers.
Desire of workers for higher bonus, wages or daily allowances.
Desire of employers to pay as little as possible to its workers.
Inadequate welfare facilities.
Dispute on sharing the gains of productivity.
Retrenchment, dismissal and lockouts by the management.
Strikes by the workers.
Inter-union rivals.
General economic and political environment such as rising

prices, strikes by others and general indiscipline having their
effect on the employees attitudes.
Mental inertia on the part of the management.
DEVELOPING SOUND IR
Developing trust between Labor & Management
Maintenance of Industrial Peace
Continuous feedback & monitoring
Professional approach
Existence of sound, democratic TU
CODE OF DISCIPLINE
It specifies various obligations for the management

and the workers with the objective of promoting
cooperation between their representatives.
To maintain harmonious relations and promote

industrial peace, a Code of Discipline has been laid
down which applies to both public and private
sector enterprises
OBJECTIVES OF CODE OF
DISCIPLINE
Maintain peace and order in industry.
Promote constructive criticism at all levels of management and

employment.
Avoid work stoppage in industry.
Secure the settlement of disputes and grievances by a mutually

agreed procedure.
Avoiding litigation.
Facilitate a free growth of trade unions.
Eliminate all forms of coercion, intimidation and violations of rules

and regulations governing industrial relations.
PRINCIPALS OF CODE OF
DISCIPLINE
There should be no strike or lockout without prior notice.
No unilateral action should be taken in connection with any

industrial matter.
Employees should not follow go slow tactic.
No deliberate damage should be caused to a plant or property
Acts of violations, intimidation and coercion should not be resorted
The existing machinery for the settlement of disputes should be

utilized.
Actions that disturb cordial relationships should be avoided.
Approaches to IR
There are mainly three approaches to IR

1. Unitary approach
2. Pluralistic Approach
3. Marxist Approach
Approaches to IR
Approaches to organisations
Unitary
Pluralistic
Co-operation
Authoritarian
Paternalism
Marxist
Conflict
Approaches to industrial relations
Input
Conflict
(differences)
Human
resource
management
Conversion
Institutions
and
processes
Systems
Revolution
Output
Regulation
(rules)
Social action
Wider approaches to industrial relations
Labour market
Evolution
Comparative
Control of
the labour
process
1. Unitary Approach
IR
is grounded in mutual co-operation, individual
treatment, team work and shared goals.

Union
co-operate with the mgt. & the mgt.s right to
manage is accepted because there is no we they feeling

Assumption:
Common interest & promotion of harmony
No strikes are there.

Its
a reactive IR strategy.
They
seek direct negotiations with employees.
2. Pluralistic Approach
It perceives:
Org. as a coalitions of competing interest.
TU as legitimate representatives of employee
interests.
Stability in IR as the product of concessions and
compromises between mgt. & unions.
Conflict between Mgt. and workers is understood as

inevitable.
Conflict is viewed as conducive for innovation and
growth.
Strong union is necessary.
3. Marxist Approach
Regard conflict as Pluralists
Marxists see conflict as a product of the capitalist society.
Conflict arises due to the division in the society between those who
own resources and those who have only labor to offer.
For Marxist all strikes are political.
He regard state intervention via legislation & the creation of Industrial

tribunals as supporting mgts interest rather than ensuring a balance
between the competing groups.
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Industrial Relations

Meaning & concept

Objective of code of discipline

MEANING & CONCEPT

The term Industrial Relations comprises of two

Industry refers to any productive activity in

The term industrial relations explains the relationship between

Industrial relations are the relationships between employees and

The relationships which arise at and out of the workplace generally

The relationships which arise at and out of the workplace

To safeguard the interest of labor and management by

To Avoid disputes between management and labor,

ROLE OF THREE ACTORS TO IR

To redress the bargaining advantage on one-on-on

Creating and sustaining employee motivation

Ensuring commitment from employees

Negotiating terms and conditions of employment

Sharing decision making with employees

Industrial relations policy

CAUSES FOR POOR IR

Inadequate fixation of wages or improper wage structure.

Unhealthy working conditions at the workplace.

Lack of human relations skills on the part of supervisors and

Desire of workers for higher bonus, wages or daily allowances.

Desire of employers to pay as little as possible to its workers.

Inadequate welfare facilities.

Dispute on sharing the gains of productivity.

Retrenchment, dismissal and lockouts by the management.

Strikes by the workers.

General economic and political environment such as rising

Mental inertia on the part of the management.

Developing trust between Labor & Management

Maintenance of Industrial Peace

Continuous feedback & monitoring

Existence of sound, democratic TU

It specifies various obligations for the management

To maintain harmonious relations and promote

Maintain peace and order in industry.

Promote constructive criticism at all levels of management and

Avoid work stoppage in industry.

Secure the settlement of disputes and grievances by a mutually

Facilitate a free growth of trade unions.

Eliminate all forms of coercion, intimidation and violations of rules

There should be no strike or lockout without prior notice.

No unilateral action should be taken in connection with any

Employees should not follow go slow tactic.

No deliberate damage should be caused to a plant or property

Acts of violations, intimidation and coercion should not be resorted

The existing machinery for the settlement of disputes should be

Actions that disturb cordial relationships should be avoided.

There are mainly three approaches to IR

Wider approaches to industrial relations

is grounded in mutual co-operation, individual

treatment, team work and shared goals.

co-operate with the mgt. & the mgt.s right to

manage is accepted because there is no we they feeling

Common interest & promotion of harmony

No strikes are there.

seek direct negotiations with employees.