INDUSTRIAL
RELATIONS
BY SUMIT MANJHI
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.”
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 decision-making, 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. Employer-employee relationships that are
covered specifically under collective bargaining and industrial relation laws.
• “Concerned with the systems, rules and procedures used by unions &
employers to determine the reward for effort & other conditions of
employment.”
According to Bethal and associates assert : Industrial relation is that part of management which is
concerned with the manpower of the enterprise. Manpower can be management and workers.
According to Tead and Netcalfe : Industrial relation is 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 organisation 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
organisation. Industrial relation is the mutual relationship between all the employer and employees of the
organisation.
According to J. Hanry Richardson : IR is an art, the art of living together for purpose of production.The
parties while working together learn this art by acquiring the skills of adjustment.
The workers as a group form Trade Unions, the employers form their own associations, and the State provides
institutions for the regulation of relations.
According to V. B. Singh : Industrial relations are an integral aspect of social relations
arising out of employer-employee interaction in modern industries which are regulated by
the State in varying degrees, in conjunction with organised social forces and influenced by
the existing institutions.
This involves a study of the State, the legal system, and the workers and employers
organizations at the institutional level; and of the patterns of industrial organisation
(including management), capital structure (including technology), compensation of the
labour force, and a study of market forces all at the economic level.
Thus, IR can now safely be defined as a coin having two faces: co- operation and conflict.
This relationship undergoes change from thesis to antithesis and then to synthesis. Thus,
the relationship starting with co-operation soon changes into conflict and after its
resolution again changes into cooperation. This changing process becomes a continuous
feature in industrial system and makes IR concept as dynamic and evolving one.
OBJECTIVES OF IR:
• The primary objective of industrial relations is to maintain and
develop good and healthy relations between employees and
employers or operatives and management.The same is subdivided into other objectives.
• Thus, the objectives of IR are designed to:
• 1. Establish and foster sound relationship between workers and management by safeguarding their
interests.
• 2. Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned
parties.
• 3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of
workers.
• 4. Provide an opportunity to the workers to participate in management and decision making process.
• 5. Raise productivity in the organisation to curb the employee turnover and absenteeism.
• 6. Avoid unnecessary interference of the government, as far as possible and practicable, in the matters
of relationship between workers and management.
• 7. Establish and nurse industrial democracy based on labour partnership in the sharing of profits and of
managerial decisions.
• 8. Socialise industrial activity by involving the government participation as an employer.
• According to Krikaldy, industrial relations in a country are influenced, to a large extent, by
the form of the political government it has. Therefore, the objectives of industrial relations
are likely to change with change in the political government across the countries.
• Accordingly, Kirkaldy has identified four objectives of industrial relations as
listed below:
• 1. Improvement of economic conditions of workers.
• 2. State control over industrial undertakings with a view to regulating production and
promoting harmonious industrial relations.
• 3. Socialisation and rationalisation of industries by making the state itself a major employer.
• 4. Vesting of a proprietary interest of the workers in the industries in which they are
employed.
• 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.
• 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.
PARTIES TO INDUSTRIAL RELATION
• Industrial relations are the outcome of employment relationships in industry i.e between employers and labours. The Govt. or
State influences these relations to a great extent.
• 1. Workers and their Organisations : The personal characteristics of workers, their culture, educational attainments,
qualifications, skills, attitude towards work etc. play an important role in IR. Workers organisations known as Trade Unions, are
political institutions . Trade unions are formed for safeguarding the economic and social interests of the workers. They put
pressure on the management for the achievement of these objectives.
• 2. Employers and their Organisations : The employers provide employment to workers and try to regulate their behaviour
for getting high productivity from them. Industrial unrest generally arise when the employers demands from the workers are
very high and they offer low economic and other benefits to the workers. In order to increase their bargaining power, employers
in several industries have organised employers associations. These associations put pressure on the trade unions and the govt.
• 3. Government : The govt. or state exerts an important influence on IR through such measures as providing employment,
intervening in working relationships and regulating wages, bonus and working conditions through various laws relating to labour.
The govt. keeps an eye on both the trade union and employers organisations to regulate their behaviour in the interest of the
nation.
Thank You