2. 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.”
3. ACC. to ILO definition “Industrial relations deals
with either the relationships between the state and
employers’ and workers’ organizations or the
relations between the occupational organizations
themselves.”
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
4. 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.
5. NATURE
Three types of relations between two
components.
Employer-Employer
Employer-Employee
Employee-Employee
It exists within the boundary wall of the Industry,
exist in both the organized or unorganized
sectors of industry.
Governed by the rules formed by the Govt,
business community and labor.
Conflict Solving nature.
7. Multi-dimensional in nature and are conditioned with
three determinants:
Institutional factors are included items such as state
policy, labor laws, voluntary codes, collective agreements,
laborers' unions and employers’ organization, social
institution like the community, caste, joint family, creed,
system of beliefs, etc, attitudes of work, systems of power
status, relative nearness to the centers of power; motivation
and influence and industrial relations.
Economic factors are included economic organization
(socialist, capitalist, communist, individual ownership,
company ownership, government ownership) power of
labor and employers, the nature and composition of the
labor force and the sources of supply and demand in the
labor market.
Technological factors come the techniques of production,
modernization and rationalization schemes, etc.
8. OBJECTIVES/IMPORTANCE
1. 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.
2. To avoid industrial conflict or strike and develop
harmonious relations.
3. A complete mental revolution of workers and employees.
The industrial peace lies ultimately in a transformed
outlook on the part of both.
4. To raise productivity to a higher level - by lessening the
tendency to high turnover and frequency absenteeism
5. To improve the economic conditions of workers in the
existing state of industrial managements and political
government
6. To eliminate or minimize the number of strikes, lockouts -
by providing reasonable wages, improved living and
working conditions etc.
9. 7. To establish a proper channel of communication
between workers and management.
8. To ensure workers’ participation in decision-
making.
9. To ensure better working conditions, living
conditions and reasonable wages.
10. To develop employees to adapt themselves for
technological, social and economic changes.
11. To make positive contributions for the economic
development of the country.
12. Good industrial relations are maintained on the
basis of cooperation and recognition of each
other. It will help increase production. Wastages
of man, material and machines are reduced to
the minimum and thus national interest is
protected.
10. CAUSES FOR POOR IR
The main reasons are as follows:
1. Nature of work.
2. Inadequate fixation of wages or
improper wage structure.
3. Working conditions
4. Defective Trade union system
5. Poor behavioral climate.
11. DEVELOPING SOUND IR
1. Developing trust between Labor & Management
2. Top management support
3. Sound Human Resource management
4. Maintenance of Industrial Peace
5. Continuous feedback & corrective actions
6. Professional approach