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The Concept of Industrial Relations

The document discusses the meaning, features, objectives, scope and importance of industrial relations. It defines industrial relations as the relationship between employers and employees in an industrial organization. It notes that industrial relations aim to maintain harmony between workers and management through collective bargaining and dispute resolution mechanisms.

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samuel
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51 views5 pages

The Concept of Industrial Relations

The document discusses the meaning, features, objectives, scope and importance of industrial relations. It defines industrial relations as the relationship between employers and employees in an industrial organization. It notes that industrial relations aim to maintain harmony between workers and management through collective bargaining and dispute resolution mechanisms.

Uploaded by

samuel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Industrial relation 

means the relationship between employers and employees in course


of employment in industrial organisations. However, the concept of Industrial
Relations has a broad and narrow meaning. In a broad sense, the term Industrial
Relations includes the relationship between the various unions, between the state and
the unions as well as those between the various employers and the government.  In the
narrow sense, it refers to all types of relationships between employer and employees,
trade union and management, works and union and between workers and workers. It
also includes all sorts of relationships at both formal and informal levels in the
organization.  Relations of all those associated in an industry may be called Industrial
Relations.

 According to International Labour Organisation, Industrial relations comprise


relationships between the state on one hand and the employer’s and employee’s
organisation on the other, and the relationship among the occupational organisations
themselves.
 According to J.T. Dunlop, “Industrial relations are the complex interrelations among
managers, workers and agencies of the government.”
 According to Dale Yoder “industrial relations is the process of management dealing with
one or more unions with a view to negotiate and subsequently administer collective
bargaining agreement or labor contract”.

Features of Industrial Relations


 Industrial relations are outcomes of employment relationships in an industrial
enterprise. These relations cannot exist without the two parties namely employers and
employees.
 Industrial relations system creates rules and regulations to maintain harmonious
relations.
 The government intervenes to shape the industrial relations through laws, rules,
agreements, terms, charters etc.
 Several parties are involved in the Industrial relations system. The main parties are
employers and their associations, employees and their unions and the government.
These three parties interact within economic and social environment to shape the
Industrial relations structure.
 Industrial relations are a dynamic and developing concept, not a static one. They
undergo changes with changing structure and scenario of the industry as and when
change occurs.
 Industrial relations include both individual relations and collective relationships.

Objectives of Industrial Relations


 To maintain industrial democracy based on participation of labor in the management
and gains of industry.
 To raise productivity by reducing tendency of high labor turnover and absenteeism.
 To ensure workers participation in management of the company by giving them a fair
say in decision-making and framing policies.
 To establish a proper channel of communication.
 To increase the morale and discipline of the employees.
 To safeguard the interests of the labor as well as management by securing the highest
level of mutual understanding and goodwill between all sections in an industry.
 To avoid all forms of industrial conflicts so as to ensure industrial peace by
providing better living and working standards for the workers.
 To bring about government control over such industrial units which are running at a loss
for protecting the livelihood of the employees.

Scope of Industrial Relations


The scope of industrial relations includes all aspects of relationships such as bringing
cordial and healthy labor management relations, creating industrial peace and
developing industrial democracy.

The cordial and healthy labor management relations could be brought in,

 by safeguarding the interest of the workers;


 by fixing reasonable wages;
 by providing good working conditions;
 by providing other social security measures;
 by maintaining healthy trade unions;
 by collective bargaining.

The industrial peace could be attained,

 by settling industrial disputes through mutual understanding and agreement;


 by evolving various legal measure and setting up various machineries such as Works
Committee, Boards of Conciliation, Labor Courts etc.

The industrial democracy could be achieved,

 by allowing workers to take part in management; and


 by recognition of human rights.

Importance of Industrial Relations


1. Uninterrupted Production: The most important benefit of industrial benefits is that it
ensures continuity of production. This means continuous employment for all involved
right from managers to workers. There is uninterrupted flow of income for all. Smooth
running of industries is important for manufacturers, if their products are perishable
goods and to consumers if the goods are for mass consumption (essential commodities,
food grains etc.). Good industrial relations bring industrial peace which in turn tends to
increase production.
2. Reduction in Industrial disputes: Good Industrial relations reduce Industrial disputes.
Strikes, grievances and lockouts are some of the reflections of Industrial unrest.
Industrial peace helps in promoting co-operation and increasing production. Thus good
Industrial relations help in establishing Industrial democracy, discipline and a conducive
workplace environment.
3. High morale: Good Industrial relations improve the morale of the employees and
motivate the worker workers to work more and better.
4. Reduced wastage: Good Industrial relations are maintained on the basis of co-
operation and recognition of each other. It helps to reduce wastage of material,
manpower and costs.
5. Contributes to economic growth and development.

Causes of poor Industrial Relations


Perhaps the main cause or source of poor industrial relations resulting in inefficiency
and labor unrest is mental laziness on the part of both management and labor.
Management is not sufficiently concerned to ascertain the causes of inefficiency and
unrest following the laissez-faire policy, until it is faced with strikes and more serious
unrest. Even with regard to methods of work, management does not bother to devise
the best method but leaves it mainly to the subordinates to work it out for themselves.
Contempt on the part of the employers towards the workers is another major cause.
However, the following are briefly the causes of poor industrial relations:

1. Economic causes: Often poor wages and poor working conditions are the main causes
for unhealthy relations between management and labor.   Unauthorized deductions
from wages, lack of fringe benefits, absence of promotion opportunities, faulty incentive
schemes are other economic causes. Other causes for Industrial conflicts are inadequate
infrastructure, worn-out plant and machinery, poor layout, unsatisfactory maintenance
etc.
2. Organisational causes: Faulty communications system, unfair practices, non-
recognition of trade unions and labor laws are also some other causes of poor relations
in industry.
3. Social causes: Uninteresting nature of work is the main social cause of poor Industrial
relations. Dissatisfaction with job and personal life culminates into Industrial conflicts.
4. Psychological causes: Lack of job security, non-recognition of merit and performance,
poor interpersonal relations are the psychological reasons for unsatisfactory employer-
employee relations.
5. Political causes: Multiple unions, inter-union rivalry weaken the trade unions. Defective
trade unions system prevailing in the country has been one of the most responsible
causes for Industrial disputes in the country.
Suggestions to Improve Industrial
Relations
1. Sound personnel policies: Policies and procedures concerning the compensation,
transfer and promotion, etc. of employees should be fair and transparent. All policies
and rules relating to Industrial relations should be fair and transparent to everybody in
the enterprise and to the union leaders.
2. Participative management: Employees should associate workers and unions in the
formulation and implementation of HR policies and practices.
3. Responsible unions: A strong trade union is an asset to the employer. Trade unions
should adopt a responsible rather than political approach to industrial relations.
4. Employee welfare: Employers should recognize the need for the welfare of workers.
They must ensure reasonable wages, satisfactory working conditions, and other
necessary facilities for labor. Management should have a genuine concern for the
welfare and betterment of the working class.
5. Grievance procedure: A well-established and properly administered system committed
to the timely and satisfactory redressal of employee’s grievances can be very helpful in
improving Industrial relations. A suggestion scheme will help to satisfy the creative urge
of the workers.
6. Constructive attitude: Both management and trade unions should adopt positive
attitude towards each other. Management must recognize unions as the spokesmen of
the workers’ grievances and as custodians of their interests. The employer should accept
workers as equal partners in a joint endeavor for good Industrial relations.
7. Creating a proper communication channel to avoid grievances and
misunderstandings among employees.
8. Education and training imparted to the employees.

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