The PPT is for reference purpose.

1. Strategic Human Resource Management – KMB HR04
Topic: Approaches to Industrial Relation
ACHLA TYAGI, ABES EC (032), AKTU,
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2. ACHLA TYAGI, ABES EC (032), AKTU,
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3. 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.”
ACHLA TYAGI, ABES EC (032), AKTU,
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4. Definitions
The term Industrial Relation is also called as
Labor - Management, Employee Employers
Relations.
1) “Employer-employee relationships that are
covered specifically under collective bargaining
and industrial relation laws”.
2) “Concerned with the systems, rules and
procedures used by unions & employers to
determine the reward for effort & other
conditions of employment.”
ACHLA TYAGI, ABES EC (032), AKTU,
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5. Parties to IR
ACHLA TYAGI, ABES EC (032), AKTU,
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6. Objectives of IR
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 strife and develop
harmonious relations.
3. To raise productivity to a higher level by reducing the
tendency to high turnover and frequency absenteeism.
4. To improve the economic conditions of workers in the
existing state of industrial managements and political
government
5. To Protect management and labor interests by securing
mutual relations between the two groups
ACHLA TYAGI, ABES EC (032), AKTU,
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7. 6. To Avoid disputes between management and labor, and
create a harmonizing relationship between the
groups so productivity can be increased.
7. Ensure full employment and reduce absenteeism,
hence, increasing productivity and profits.
8. To Provide better wages and living conditions to labor,
so misunderstandings between management and labor
are reduced to a minimum.
9. To bring about government control over plants where
losses are running high, or where products are
produced in the public interest
ACHLA TYAGI, ABES EC (032), AKTU,
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8. Importance OF IR
• Uninterrupted production
• Reduction in Industrial Disputes
• High morale
• Mental Revolution
• Reduced Wastage
• Foster Industrial Peace
• Promote Industrial Democracy
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9. Role of the Three actors to IR
• EMPLOYEES
• STATE
• EMPLOYER
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10. Role of Employee
• To redress the bargaining advantage on one-
on-on basis
• To secure better terms and conditions for their
members
• To obtain improved status for the worker in
his/her work
• To increase implementation of democratic
way of decision making at various levels
ACHLA TYAGI, ABES EC (032), AKTU,
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11. Role of State
• Labor policies
• Labor laws
• Industrial tribunals
• Wage boards
• Industrial relations policy
ACHLA TYAGI, ABES EC (032), AKTU,
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12. Role of Employer
• Creating and sustaining employee motivation
• Ensuring commitment from employees
• Negotiating terms and conditions of
employment with TU leaders
• Sharing decision making with employees
ACHLA TYAGI, ABES EC (032), AKTU,
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13. Approaches to IR
There are mainly three approaches to IR
1. Unitary approach
2. Pluralistic Approach
3. Marxist Approach
ACHLA TYAGI, ABES EC (032), AKTU,
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14. ACHLA TYAGI, ABES EC (032), AKTU,
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15. Factors Affecting Employee
Relationship Strategy
• Internal Factors
1. The attitude of management to unions and employees
2. The attitude of employees and unions to management
3. The attitude of employees to unions
4. The strength of unions
5. The extent to which agreed and effective procedures and rules
exist within company to resolve disputes and handle disciplinary
matters
6. The competence of managers to deal with employees issues
• External Factors
1. Strength and effectiveness of employers’ associations
2. The pay and employment situations at local and national level
3. The legal framework in which IR operates
ACHLA TYAGI, ABES EC (032), AKTU,
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16. Strategic Role of HR in IR
• Motivated and competent workforce is
responsibility of HR
• Through effective recruitment, work conditions,
job designs, safety and health environment,
training and compensation HR department
satisfies employee and organization needs
• Through these efforts it contributes to quality of
life of workers
• Workers with better quality of life less likely to
resist, involve in disputes and go on strikes
ACHLA TYAGI, ABES EC (032), AKTU,
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