INDUSTRIAL RELATIONS
Trends in Industrialization-at early stage
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Loss of freedom
Unhygienic working conditions
Employment of children
Freedom to contract
Dynamics of market
INDUSTRIAL RELATIONS-CONCEPT
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Deals with people who are the base of
industry
Behind every activity there is a human being
Problem of IR is most prominent
Process by which people and their organ
interact at the place of work to establish
terms & conditions of employment
Denotes employee-employer relations or
Labour-management relations
NOTABLE FEATURES OF IR
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Involves both conflict & co-operation
Environmental issues impact stronglytechnology, socio-economic, political and
labor policy, trade union’s attitude
Relates to study of Laws, rules, awards of
courts
SCOPE OF IR
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Labour relations I.e.relations between
union & management
Employer-employee relations-relations
between mgmt & employees
Group relations-relation between various
groups of workmen
COMPONENTS OF IR SYSTEM
It comprises of 3 actors:
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Workers (Employees) and their
organizations (Trade unions)
Management (Employers) and their
organizations (Employers assoc/
federation)
Government
APPROACHES TO IR
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Psychological approach:
 Mgmt. and labour see each other as non
dependable and looked upon with
suspicion
Sociological approach:
 Value systems,customs,norms,attitude &
perception of both labour and mgmt
affect IR
 Scanning of all social factors call of time
APPROACHES TO IR (contd..)
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Human relations approach:
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Most delicate & tricky
HRM policies relating to motivation and
leadership style play key role
Study of human needs very importantQWL
APPROACHES TO IR (contd..)
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Socio-Ethical approach:
IR has some ethical implication
 Creation of willingness to co-operate as
partners
 Development of a code of ethics & a mgmt
philosophy
 Mgmt. and workers should feel the urge for
joint consultation
VVGiri -”Stress on collective bargaining & mutual
negotiations for settlement of disputes
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APPROACHES TO IR (contd..)
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Gandhian approach:
 Peaceful co-existence of capital & labour
 Resolution of conflict by non-violent,non cooperation
 Accepted worker’s right to strike but in a just
case
 Capitalist expected to hold industry in trust
for community.No room for conflict
 India’s IR system largely influenced by this
approach
APPROACHES TO IR (contd..)
System approach:
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John Dunlop developed a system approach
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It is an ideological linkage
• Market Restraints
• Technology
• Distribution of Power in
Society
Union –
Mgmt
Govt.
Output is result of interaction
Rules of
Workplace
INDUSTRY
EMPLOYER
LABOUR
[MANGEMENT]
[TRADE UNION]
INDUSTRIAL RELATION IS INTERACTION BETWEEN THE
TWO STAKE-HOLDERS AT WORK PLACE TO
HARMONISE CONFLICTING INTERESTS
MANAGEMENT INTEREST
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HIGH LEVEL OF PRODUCTIVITY
MAXIMUM PROUCTION
OPTIMUM UTILISATION OF RESOURCES
DICIPLINED WORK FORCE
INDUSTRIAL PEACE
TO MAXIMISE PROFIT
LABOUR INTEREST
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HIGH REMUNERATION
FULFILMENT OF HUMAN NEEDS AND WANTS
RECOGNITION, OTHER SOCIAL NEEDS
PARTICIPATION IN DECISION MAKING
PROTECTION OF RIGHTS, RIGHT TO ORGANISE
AND UNIONISE
CAREER GROWTH
JOB SATISFACTION
HOW TO HARMONISE
CONFLICTING INTERESTS
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MANAGEMENT
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TRANSPARENCY
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INFORMATION SHARING
BE FAIR AND REASONABLE 
GRIEVANCE REDRESSAL
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MECHANISM
SOCIAL DIALOGUE
COMPLIANCE WITH LABOUR
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LAWS
HUMAN RESOURCE
DEVELOPMENT
RECOGNITION
TRADE UNION
RECOGNISE RIGHTS AND
OBLIGATIONS OF MANAGEMENT
KNOW CAPACITY OF INDUSTRY
TO PAY
REASONABLE EXPECTATIONS
AND DEMANDS
EDUCATION OF WORKERS
SETTLEMENT OF DEMANDS ONLY
THROUGH LEGITIMATE,
DEMOCRATIC METHODS
PRE-REQUISITES FOR SUCCESSFUL IR
PROGRAMME
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Top management support
Development of sound HRM & IR policies
Implementation of effective HR & People
friendly practices
Provision of adequate training
CHARACTERISTICS OF IR SYSTEMS IN
INDIA TODAY
 Unions restricted to organized sector &
multiplicity
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Varying management styles
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Excessive state intervention
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Lacunae in Labour legislation
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Disputes largely relating to wages
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Collective bargaining gaining popularity
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No stated National Policy on IR
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More accommodating mood setting amongst
workforce in wake of New Economic Policy
ROLE/BEHAVIOUR OF ACTORS
(1) WORKERS:
 Form unions to safeguard interests and
act as bargainers
 In India there are 10 central
organizations
 Mainly political institutions and a
regulatory device to management actions
ROLE/BEHAVIOUR OF ACTORS
(2) MANAGEMENT
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Key actor in the system
Manner to get work done determines the quality of
relations
Likert identified following leadership styles:
 Exploitative & authoritative system
 Benevolent authoritative system
 Consultative Management
 Participative Style
ROLE/BEHAVIOUR OF ACTORS
(3) GOVERNMENT
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Govt acts as a regulator & judge
th century ,govt. never bothered to
 Till 19
intervene
 Only early 40’s govt. laid need for consultation
with labour & management.
 Enacted legislations, acts & labour laws.
“ In globalization set up,increasing awareness of
workers,complexities,the relations of 3 actors will
become more complex’