Introduction to Industrial Relations
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Industrial relations involves the complex relationships between management, workers, their representative organizations, and the state, and aims to facilitate production while protecting the rights and interests of both labor and management. It is a dynamic field that depends on factors like a country's socioeconomic systems and changes with social and economic conditions. The main parties involved in industrial relations are workers, management, their organizations, and the government, and the goals include maintaining harmony between labor and employers and avoiding unrest.
Introduction to Industrial Relations
- 2. What is IR • It is an art of living together for the purposes of production, productive efficiency, human well-being and industrial progress. • Industrial relations constitute one of the most delicate and complex problems of the modern industrial society that is characterised by rapid change, industrial unrest and conflicting ideologies in the national and international spheres. • It is a dynamic concept that depends upon the pattern of the society, economic system and political set-up of a country and changes with the changing economic and social order. • These institutions are a social network of organisations, participants, processes and decisions: all of which interact and inter-relate together within the industrial relations environment and even beyond it.
- 3. CONCEPT AND SCOPE • “Industrial relations” means relationship between management and workmen in a unit or an industry. • Tead and Metcalfe observed that “industrial relations are the composite result of the attitudes and approaches of employers and employees towards each other with regard to planning, supervision, direction and coordination of the activities of an organization with a minimum of human efforts and frictions with an animating spirit of cooperation and with proper regard for the genuine well-being of all members of the organization.”
- 4. Cont… • Professor Clegg defines industrial relations in the broadest terms as “encompassing the rules governing employment together with the ways in which the rules are made and changed and their interpretation and administration.” • It is a highly complex and dynamic process of relationships involving not only employees and managements, but also their collective forums and the State. • In an organisation, these relationships may be personal and informal at one end, and may be highly institutional with legally prescribed structures and procedures, at the other end.
- 5. Parties to IR The four main parties who are actively associated with any industrial relations system are: • The workers, • The managements, • The organisations of workers and managements, • The State.
- 6. Objectives of IR Apart from the primary objective of bringing about sound and healthy relations between employers and employees, industrial relations aim: • 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; and • to establish and maintain industrial democracy.
- 7. According to Kirkaldy, industrial relations in a country are intimately connected with the form of its political government; and the objectives of an industrial organization may vary from purely economic to purely political ends. He divides the objectives of industrial relations into four categories: • improvement in the economic conditions of workers in the existing state of industrial management and political government; • control exercised by the state over industrial undertakings with a view to regulating production and promoting harmonious industrial relations; • socialization or rationalization of industries by making the state itself a major employer; and • vesting of a proprietary interest of the workers in the industries in which they are employed.
- 8. 1-8 • Union – a group of workers • recognized by law • collectively bargain terms and conditions of employment with their employer • Industrial Relations – study of employment relationships and issues • often in unionized workplaces Important Terms in Industrial Relations
- 9. • Labour Relations – study of employment relationships and issues between groups – employees and management – also known as management relations • Collective Agreement – written document outlines terms and conditions of employment – in a unionized workplace 1-9 Important Terms in Industrial Relations
- 10. • Human Resource Management – examines employment relationship – between employers and individual employees • Employee Relations – usually in nonunion settings 1-10 Important Terms in Industrial Relations
- 11. • Employment Relations – examines employment relationships – in union and non-union workplaces 1-11 Important Terms in Industrial Relations
- 12. Labour in India Type Industry Known As Primary Sector Agriculture Forestry and logging Fishing Mining Agriculture and allied industries Secondary Sector Manufacturing Electricity Construction Industrial Activities Tertiary Sector Trade, Hotels & Restaurants Transport, communication & storage Financial Services Real Estate Public administration and defence Community & personal services Services
- 13. Characteristics of Indian Labour 1. Occupational Structure in India (Distribution of labour; Profile of GDP; Segmentation of labour market) 2. Size of workforce (Male female ratio; main & marginal workers; organized vs. unorganized sector; challenges) 3. Workforce participation rate (Trend) 4. Changes in industrial environment (professional management; rise & disinvestment of PSU; FDIs, Technology/ & its impact on Industrial Labour:- Status of the worker; stabilization of workforce; healthy work env.; protective legislation; workforce composition; higher level of aspirations; growth of Trade Unionism)
- 14. Cont… 5. Features of Industrial Labour in India (Level of literacy; Predominance of male workers; Heterogeneity of workforce; lack of unity; High rates of absenteeism and turnover; migratory character; Claim to dignity) 6. Migration of Rural Labour to Urban Areas (Causes of migration; Factors pushing from rural areas) 7. Instability of Labour force and lack of commitment 8. Role of Labour in Economic Development (Industrial democracy; Emerging role of labour; National Interest; Role of trade unions) 9. Profiles of Indian Managers (Traditional to modern)
- 15. System Approach (by John Dunlop) Focuses on – Participants in the process – Environmental forces – Output And their inter-relationship. 13/20
- 16. System Approach (contd.) (Set of Ideas and Beliefs) 14/20
- 17. System Approach (contd.) (i) Market or Budgetary Restraints (ii)Technology (iii)Distribution of Power in Society Union – Management Government Rules of the Workplace Environmental Forces Participants Outputs 15/20
- 18. System Approach:Participants The main participants are Workers and their organisations Management and their representatives Government agencies 16/20
- 19. System Approach:Environment Three types of environments Technological characteristics of workplace (Technological sub-system) The market or economic constraints (Economic sub-system) The ‘locus’ and ‘balance of power’ existing in society (Political sub-system) 17/20
- 20. System Approach: Output Output is the result of interaction of the parties/actors of the system which is manifested in the network of rules, country’s labour policy and labour agreements etc. that facilitate a fair deal to workers. 18/20
- 21. • Descriptive • Lacks ability to predict outcomes/ relationships • Underestimates importance of power and conflict in employment relationship • Is static • Cannot explain rapid decrease in unionization 1-21 Criticisms of the Dunlop Model
- 22. Environmental Framework of IR IR Economic Forces Social Forces Psychological Forces Politico- legal Forces
- 23. Scope of IR 1. Promotion of Healthy Labour-management relations 2. Maintenance of industrial peace and avoidance of industrial strife 3. Promotion of industrial democracy
- 24. 1. Promotion of Healthy Labour- management relations • Existence of strong, well organized, democratic and responsible TUs and associations of employers in the industry • Spirit of collective bargaining • Labour welfare
- 25. 2. Maintenance of industrial peace and avoidance of industrial strife • Machinery for the prevention and settlement of industrial disputes (i)Legislative & administrative enactments; (ii) work committees and joint management councils; (iii)conciliation officers and board of conciliatiors (iv) Labour courts, industrial tribunals, national tribunals, court of enquiry (v) Provisions for voluntary arbitration • Provisions of bipartite and tripartite forums for settlement of disputes
- 26. 3. Promotion of industrial democracy • Establishment of the shop council and joint management councils at the shop floor and plant level • Recognition of Human Rights in Industry • Increase in productivity
- 27. Factors affecting IT 1. Institutional factors 2. Economic factors 3. Social factors 4. Technological factors 5. Psychological factors 6. Political factors 7. Enterprise-related factors 8. Global factors
- 28. CASE of the DAY