The document provides an overview of key concepts in industrial relations. It discusses the four factors that encompass industrial relations: institutions/major players, characters, methods, and contents. It defines industrial relations and identifies the major parties as employees and their organizations, employers and their organizations, and third parties like the government. It describes the relationships between these parties. Finally, it discusses John Dunlop's influential model of the industrial relations system which identifies the environment, actors (management, workers, government), and rules governing the employment relationship as the three key factors to analyze.

1. Industrial relations
Module 1 ;
UNDERSTANDINGTHE CONCEPT OF INDUSTRIAL
RELATIONS

2. FLOW OF PRESENTATION
Introduction to Industrial Relations
1.1
1.2 Concept of Industrial Relations
Glossary of Industrial Relations
1.3
1.4
1.5
1.6
1.7
Industrial Relation System
Importance of Industrial Relations
Objectives of Industrial Relations
Dunlop’s Contribution to Industrial Relations

3. 1.1 Introduction to Industrial Relations
State and explain correctly the four factors
that encompasses industrial relations.
1.1.1

4. Introduction
The term industrial relations is used to cover such aspects of industrial
life as;
trade unionism,
collective bargaining,
workers‘ participation in management,
discipline and grievance handling,
industrial disputes and
interpretation of labour laws and rules and
code of conduct
Anna’s
Group

5. Differentiate IR from Employee Relations and
Human Resource Management

6. Definitions…………
In the words of Lester,
"Industrial relations involve
attempts at arriving at solutions,
between the conflicting
objectives and values;
between the profit motive and
social gain; between discipline
and freedom, between authority
and industrial democracy;
between bargaining and co-
operation; & between conflicting
interests of the individual, the
group and the community”.
Industrial relations comprises ‘all
the rules, practices and conventions
governing interactions between
managements and their workforces,
normally involving collective
employee representation and
bargaining.’
Graham and Bennett (1998)

7. The First Rabaul Strike
• ........DownloadsSHAREitVideoAlex Hopper Rabaul _ ABC Four
Corners.mp4

8. 1.1.1 State and explain correctly the four factors that
encompasses industrial relations.
Factors that influence behaviour of people at work.
A.Institution/ Major Players
B.Characters
C. Methods
D.Contents
Sasha’s
Group

9. A. Institution/ Major Players:
• It includes government, employers, trade unions, union
federations or associations, government bodies, labor
courts, tribunals and other organizations, which have direct
or indirect impact on the industrial relations systems.

10. B. Characters
It aims to study the role of workers unions and employers’
federations officials, shop stewards, industrial relations officers/
manager, mediator/conciliators / arbitrator, judges of labor court,
tribunal etc.

11. C. Methods
Methods focus on collective bargaining, workers’ participation in
the industrial relations schemes, discipline procedure, grievance
redressal machinery, dispute settlements machinery working of
closed shops, union reorganization, organizations of protests
through methods like revisions of existing rules, regulations,
policies, procedures, hearing of labor courts, tribunals etc.

12. D. Contents
It includes matter pertaining to employment conditions like pay, hours of
works, leave with wages, health, and safety disciplinary actions, lay-off,
dismissals retirements etc., laws relating to such activities, regulations
governing labor welfare, social security, industrial relations, issues concerning
with workers’ participation in management, collective bargaining, etc.

13. 1.2 Concept of Industrial
Relations
1.2.1
Correctly describe the concept of
Industrial Relations
1.2.2
Identify the parties in
Industrial relations
State the relationships involved
between the parties
1.2.3

14. 1.2.1 Correctly describe the concept of
Industrial Relations
Industry
to “any productive activity in which
an individual (or a group of
individuals) is (are) engaged”.
Relations
“the relationships that exist within
the industry between the employer
and his workmen.”
Industrial relations comprises of two terms; “Industry” & “Relations”
 Industrial relations are the relationships between employees and
employers within the organizational settings.
 The field of industrial relations looks at the relationship between
management and workers, particularly groups of workers represented
by a union.
 Industrial relations are basically the interactions between employers,
employees and the government, and the institutions and associations
through which such interactions are mediated.

15. 1.2.2 Identify the parties in Industrial
Relations
1.Workers and their organizations
2.Employers and their organizations
3.Third parties
4.Other stakeholders

16. 1. Workers and their Organisation
1.Staff Associations
2.Professional Bodies and Associations

17. 2. Employers and their Organisations
1.Voluntary private groups of employers founded to facilitate trade,
communication and representation in areas of common interest.
national bodies covering a whole industry (for example, Engineering
Employers Federation)
regional or specialized in their scope.
2.Consist of companies of different sizes and organize themselves in
different ways: most are consultative, rather than decision making,
bodies. Some give priority to trade matters, others to employee relations.
3.They were initially developed on an ad hoc basis in response to specific
industrial disputes with the early trade unions, but by the end of the
nineteenth century, in response to the growing influence of unionism,
adopted the federated approach to organization at an industry/ national
level.

18. Main purposes of employers association are:
1.To give general help and advice on employee relations
issues.
2.To represent members’ views to political influencers and
decision-making bodies (e.g. lobbying parliament).
3.To assist member firms in the resolution of disputes
(including representation of EmploymentTribunals).
4.To negotiate sectoral collective agreements (where
applicable) with trade unions.

19. 3. Third parties
Established
agencies that
will act as;
 government,
 arbitrators
 judges
have an important bearing on industrial relations,
because they set a framework for what employers
and employees can and cannot do.
i. Arbitrator
Union/employer ;disagreement on
 union recognition
conduct of collective bargaining
establishment and operation of work councils.
ii. EmploymentTribunals
deal with most cases brought under employment
law.

20. 4. Other Stakeholders

21. 1.2.3 State the relationships involved between the parties
The relationships which arise at and out of the workplace generally include the
Relationships between individual workers,
relationships between workers and their employer,
relationships between employers,
relationships employers and workers have with the organizations formed to promote
their respective interests,
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),
management of conflict between employers, workers and trade unions, when it
arises.

23. 1.3.1 Glossary of Industrial Relations
Industrial Disputes Act 1947 defines an industry as any systematic
activity carried on by co-operation between an employer and his
workmen for the production, supply or distribution of goods or
services with a view to satisfy human wants or wishes whether or
not any capital has been invested for the purpose of carrying on
such activity; or such activity is carried on with a motive to make
any gain or profit.
Thus, an industry is a whole gamut of activities that are carried on
by an employer with the help of his employees and labors for
production and distribution of goods to earn profits.
Industry
Employer
Employee
Employment
Labor
market
Industry

24. An employer can be defined from different perspectives as:-
a person or business that pays a wage or fixed payment to other person(s) in exchange for
the services of such persons.
a person who directly engages a worker/ employee in employment.
any person who employs, whether directly or through another person or agency, one or
more employees in any scheduled employment in respect of which minimum rates of
wages have been fixed.
As per Industrial Disputes Act 1947 an employer means:-
in relation to an industry carried on by or under the authority of any department of
[the Central Government or a State Government], the authority prescribed in this
behalf, or where no authority is prescribed, the head of the department;
in relation to an industry carried on by or on behalf of a local authority, the chief
executive officer of that authority;
Employer

25. Employee is a person who is hired by another person or business for a wage
or fixed payment in exchange for personal services and who does not
provide the services as part of an independent business.
An employee is any individual employed by an employer.
A person who works for a public or private employer and receives
remuneration in wages or salary by his employer while working on a
commission basis, piece-rates or time rate.
Employee, as per Employee State InsuranceAct 1948, is any person
employed for wages in or in connection with work of a factory or
establishment to which the act applies.
Employee

26. • The state of being employed or having a job.
Employment

27. The market in which workers compete for jobs and employers
compete for workers.
It acts as the external source from which organizations attract
employees.
These markets occur because different conditions characterize
different geographical areas, industries, occupations, and professions at
any given time.
Labor market

28. 1.4 Industrial Relation System
1.4.1
1.4.2
1.4.3
1.4.4
State the list of terms associated with Industrial Relations &
define them correctly
State the actors in the IR system
Draw the output of the IR system & specify the outputs of
the system
State the issues involved in the IR system

29. • Relationship between the respective parties in Industrial
Relations.
1.4.1 State the list of terms associated with
Industrial Relations & define them
correctly

30. Three main parties (actors) are directly involved in industrial relations:
1.4.2 State the actors in the IR system
Employees (by Unions): Workers seek to improve the terms and conditions of their employment.They
exchange views with management and voice their grievances.They also want to share decision making
powers of management. Workers generally unite to form unions against the management and get support
from these unions.
Government:The central and state government influences and regulates industrial relations through laws,
rules, agreements, awards of court ad the like. It also includes third parties and labor and tribunal courts.
Employers: Employers possess certain rights vis-à-vis labors.They have the right to hire and fire them.
Management can also affect workers’ interests by exercising their right to relocate, close or merge the
factory or to introduce technological changes.

31. 1.4.3 Draw the output of the IR system & specify the
outputs of the system

32. SCOPE
The concept of industrial relations has a very wide meaning and
connotation. In the narrow sense, it means that the employer,
employee relationship confines itself to the relationship that
emerges out of the day to day association of the management and
the labor. In its wider sense, industrial relations include the
relationship between an employee and an employer in the course
of the running of an industry and may project it to spheres, which
may transgress to the areas of quality control, marketing, price
fixation and disposition of profits among others.

33. 1.4.4 State the issues involved in the IR system
The scope or industrial relations is quite vast.The main issues
involved here include the following:
Collective bargaining
Machinery for settlement of industrial disputes
Standing orders
Workers participation in management
Unfair labor practices

34. 1.5 Importance of Industrial Relations
The healthy industrial relations are
key to the progress and success.
Their significance may be discussed
as under –
1. Uninterrupted
production
2. Reductions in
Industrial
Disputes
3. High morale
4. Mental Revolution
5. Reduced Wastage

35. 1.6 Objectives of Industrial Relations
The main objectives of industrial relations system
are:
1. To safeguard the interest of labor and management
2. To avoid industrial conflict or strife
3. To raise productivity to a higher level
4. To establish and promote the growth of an industrial
democracy
5. To eliminate or minimize the number of strikes,
lockouts
6. To improve the economic conditions of workers
7. Socialization of industries
8. Vesting of a proprietary interest of the workers

36. 1.7 Dunlop’s Contribution to Industrial Relations
Dunlop's theory of IR
1950
Proposition
industrial relations system consists of three agents
1. management organizations,
2. workers and formal/informal ways they are organized and
3. government agencies.
These actors and their organizations are located within an
environment – defined in terms of
1. technology,
2. labor and product markets, and
3. the distribution of power in wider society as it impacts upon
individuals and workplace.
Continue next slide

37. From previous
slide Within this environment, actors interact with each other, negotiate and use
economic/political power in process of determining rules that constitute the
output of the industrial relations system.
• He proposed that three parties - are the key actors in a modern industrial
relations system;
1.employers,
2.labor unions, and
3.government-.
• He also argued that none of these institutions could act in an autonomous
or independent fashion. Instead they were shaped, at least to some extent,
by their market, technological and political contexts

39. Dunlop's model identifies three key factors to be considered in conducting an
analysis of the management-labor relationship:
1. Environmental or external economic, technological, political, legal and
social forces that impact employment relationships.
2. Characteristics and interaction of the key actors in the employment
relationship: labor, management, and government.
3. Rules that are derived from these interactions that govern the
employment relationship.