INDUSTRIALRELATIONS-

INTRODUCTION

Industry

• Industrial Disputes Act 1947 defines an industry as any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes whether or not any capital has been invested for the purpose of carrying on such activity; or such activity is carried on with a motive to make any gain or profit.

Employer

• An employer can be defined from different perspectives as:-

• A person or business that pays a wage or fixed payment to other person(s) in exchange for the services of such persons.

• A person who directly engages a worker/employee in employment.

Employee

• Employee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the services as part of an independent business.

• An employee is any individual employed by an employer.

Labor market

The market in which workers compete for jobs and employers compete for workers.

Industrial Relation System

An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation.

INDUSTRIAL RELATIONS

• The relation between an employee and an employer in the course of running of an industry and may project itself to spheres which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.

• Industrial Relations or Labour relations, is an expression used not only for relationships between employers and Trade Unions, but also for those involving Government with the aim of defining policies, facing labour problems.

According to the ILO, “industrial relations deal with either the relationships between the state and the employers and the workers’ organisation or the relation between the occupational organisations themselves”.

INDUSTRIAL

RELATIONS

EMPLOYEES

EMPLOYER

GOVERNMENT

TRADE UNIONS

EMPLOYER’S ASSOCIATION

COURTS & TRIBUNALS

CHARACTERISITCS

1. Employer-employee interactions.

2. Web of rules.

3. Multidimensional.

4. Dynamic and changing.

5. Spirit of compromise and accommodation.

6. Government’s role.

7. Wide coverage.

8. Interactive and consultative in nature.

DimensionDimension Industrial Industrial RelationsRelations

HRMHRM

PsychologicPsychological Contractal Contract

ComplianceCompliance CommitmentCommitment

Behavioral Behavioral ReferencesReferences

Norms, Norms, custom, custom, practicepractice

Value & Value & MissionMission

RelationsRelations Low Trust, Low Trust, CollectiveCollective

High trust, High trust, individualindividual

OrganizatioOrganization Designn Design

Formal Roles, Formal Roles, Division of Division of Labour, Labour, HierarchyHierarchy

Flexible Flexible Roles, Roles, Teamwork, Teamwork, Flat StructureFlat Structure

Objectives of Industrial Relations

• To enhance the economic status of the workers.

• To regulate the production by minimising industrial conflicts through state controls.

• To socialise industries by making government an employer.

• To provide an opportunity to the workers to have a say in management & decision making.

• To encourage & develop trade unions in order to improve the workers’ collective strength.

• To avoid indusial conflicts & their consequences.

Approaches to Industrial Relations

•Psychological approach: The problems of industrial relations are attributable to the differences in the perceptions of labour and management.

• Sociological approach: A number of sociological factors such as the value system, customs, and traditions-affect the relations between labour and management.

•Giri approach: Collective Bargaining and Joint Negotiations be used to settle disputes between labour and management. •Outside interference must be avoided

• Gandhian approach: Gandhiji accepted the worker’s right to strike • This right be exercised in just cause and in a peaceful, non-violent fashion. • The trusteeship theory -wealth belongs to society and not to the owners of an enterprise.

• Human relations approach: Human behavior is influenced by a variety of social and psychological factors, not just earnings.

• To reduce friction and conflict in the workplace, managers need to possess effective social skills.

• Every attempt must be made to integrate the individual objectives with overall organizational objectives

HRD Approach to Industrial Relations

Human Resource Development involvesways to better adjust the individual to

his job & environment.the deepest involvement of an employee

in various aspects of his work.the greatest concern for enhancing the

capabilities of the individuals.

Essential Conditions for Sound Industrial Relations

• Existence of strong, well organized and democratic employees’ unions.

• Existence of sound and organized employers’ unions.

• Spirit of collective bargaining and willingness to resort to voluntary negotiations.

• Maintenance of industrial peace.