Industrial relations
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Industrial relations

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    Industrial relations Industrial relations Presentation Transcript

    • Industrial RelationsComprises of two terms: ‘Industry’ and ‘Relations’Industry means any systematic activity carried on by co-operation between anemployer and his workmen whether such work men are employed by such employeedirectly or by or through any agency including a contractor for the production, supplyor distribution of goods or services with a view to satisfy human wants or wishes witha motive to make any gain or profit; not merely spiritual or religious“Relations” means “the relationships that exist within the industry between theemployer and his workmen”Industrial relations defined to include the relationships and interactions betweenemployers and employeesThis perspective of industrial relations cover all aspects of the employmentrelationship, including human resource management, employee relations, and union-management (or labour) relations
    • Industrial RelationsIndustrial relations includes the processes through which relationships arise atand out of the workplace (relationships between individual workers, relationshipsbetween workers and their employer, relationships between employers,relationships between employers and workers) are expressed (such as, collectivebargaining, workers’ participation in decision-making, and grievance and disputesettlement), and the management of conflict between employers, workers andtrade unions, when it arises
    • Industrial RelationsA sound industrial relations system is one in which relationships betweenmanagement and employees (and their representatives) on the one hand, andbetween them and the State on the other, are more harmonious and cooperativethan conflictual and creates an environment conducive to economic efficiency andthe motivation, productivity and development of the employee and generatesemployee loyalty and mutual trust
    • Actors in the IR systemThree main parties are directly involved in industrial relations:EmployerAny person who employs, whether directly or through another person or agency,one or more employees in any scheduled employment in respect of whichminimum rates of wages have been fixedEmployers possess certain rights vis-à-vis labors which include: Right to hire and fire employees Right to relocate, close or merge the factory or to introduce technologicalchanges which may affect workers’ interests
    • Actors in the IR system Cont..EmployeesEmployee is a person who is hired by another person or business for a wage orfixed payment in exchange for personal services and who does not provide theservices as part of an independent businessCharacteristics Seek to improve the terms and conditions of their employment Exchange views with management and voice their grievances Want to share decision making powers of managementUnite to form unions against the management and get support from these unionsGovernmentInclude Central and State government influences and regulates industrial relationsthrough laws, rules, agreements, awards of Court. It also includes third parties andlabor and tribunal courts
    • Objectives•To safeguard the interest of labour and management by securing the highest level ofmutual understanding and good-will among all those sections in the industry whichparticipate in the process of production• To avoid industrial conflict or strife and develop harmonious relations, which areanessential factor in the productivity of workers and the industrial progress of acountry• To raise productivity to a higher level in an era of full employment by lessening thetendency to high turnover and frequency absenteeism• To establish and promote the growth of an industrial democracy based on labourpartnership in the sharing of profits and of managerial decisions
    • Objectives Cont..• To eliminate or minimise the number of strikes, lockouts and gheraos byproviding reasonable wages, improved living and working conditions, saidfringebenefits• To improve the economic conditions of workers in the existing state of industrialmanagements and political government• Socialisation of industries by making the state itself a major employer• Vesting of a proprietary interest of the workers in the industries in which they areemployed
    • ScopeScope of industrial relations are quite vast. The main issues involved here includethe following:1. Collective bargaining2. Machinery for settlement of industrial disputes3. Standing orders4. Workers participation in Management5. Unfair labour practices
    • Importance/ Significance Uninterrupted productionImportant benefit of industrial relations is that this ensures continuity of productionMeans, continuous employment for all from manager to workersThe resources are fully utilized, resulting in the maximum possible productionresults in uninterrupted flow of income Reduction in Industrial DisputesGood industrial relations reduce the industrial disputesDisputes are reflections of the failure of basic human urges or motivations tosecure adequate satisfaction or expression which are fully cured by good industrialrelationsStrikes, lockouts, go-slow tactics, gherao and grievances are some of thereflections of industrial unrest which do not spring up in an atmosphere ofindustrial peace
    • Importance/ Significance Cont.. High moraleImprove the morale of the employeesEmployees work with great zeal with the feeling in mind that the interest ofemployer and employees is one and the same, i.e. to increase productionEvery worker feels that he is a co-owner of the gains of industryThe employer in his turn must realise that the gains of industry are not for himalong but they should be shared equally and generously with his workersIn other words, complete unity of thought and action is the main achievement ofindustrial peaceIt increases the place of workers in the society and their ego is satisfiedIt naturally affects production because mighty co-operative efforts alone canproduce great results
    • Importance/ Significance Cont..Mental RevolutionHelps to have complete mental revolution of workers and employeesThe industrial peace lies ultimately in a transformed outlook on the part of bothBoth should think themselves as partners of the industry and the role of workers insuch a partnership should be recognizedOn the other hand, workers must recognise employer’s authorityIt will naturally have impact on production because they recognize the interest ofeach other
    • Importance/ Significance Cont.. Reduced WastageGood industrial relations are maintained on the basis of cooperation andrecognition of each other which helps to increase production by utilising theresources effectivelyWastages of man, material and machines are reduced to the minimum and thusnational interest is protectedIt is evident that good industrial relation is the basis of higher production withminimum cost and higher profitsIt also results in increased efficiency of workers