Industrial Relations

1. Presented by
Dr. Md. Ruhul Amin
Department of Management
Islamic University, Kushtia

2. Introduction
 Industrial relations (IR) has become one of the most delicate and complex
problems of modern industrial society. Industrial progress is impossible
without cooperation of labors and harmonious relationships. Therefore, it is
in the interest of all to create and maintain good relations between
employees (labor) and employers (management). It is now a days has
become one of the important areas of HRM. In an Industrial concern, many
things depend on good relations between management and employees,
employees and employees, government and management and last of all
government and employees. In presence of good IR an organization can
increase its productivity, enhance the quality of goods and services, and
utilize the employees’ time efforts, commitment and so on. On the other
hand in the absence of good relations an organization may suffer a lot in
many sides. Productivity target may be affected, interpersonal conflict and
group conflict can emerge. In Bangladesh, most of the Industrial enterprises
are the victims of bad IR. It is undoubtedly true that, if Bangladesh wants to
strengthen its Industrial base and increase the contribution of industrial
sector to the national economy, good Industrial is essential.

3. Definition of Industrial Relations
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.” The term industrial relations
explains the relationship between employees and management
which stem directly or indirectly from union-employer relationship.
Simply Industrial relation defined as relation of Individual or group
of employee and employer for engaging themselves in a way to
maximize the productive activities.
The term “Industrial relations” has been variously defined by different
writers. Industrial relations means the nature of relationship between
the employer and employee in an industrial organization.
According to Prof. Dunlop, “Industrial relations defined as the complex
of interrelations among workers, managers and Government’’.

4. Definition of Industrial
Relations
 According to Encyclopedia Britannica, “Industrial
relations include individual relations and joint
consultation between employers and work people at the
place of work, collective relations between employers
and the organizations and the trade unions and the part
played by the state in regulating these relations.”
 According to Biswanath Ghosh “Industrial relations is an
art, the art of living together for purposes of production.”
 The ILO has dealt with the relationships between the
State on the one hand and the employers’ and
employees’ organizations on the other or with the
relationships among the occupational organizations
themselves.

5. Industrial Relations
Includes
 the relations between employers and employees
at the plant level.
 the relation between the various unions.
 the relations between employers or their
organizations and trade unions at various level
(Level of plant, region or industry and national
level)
 the relation between the state and the unions.
 the relation between the employers and the
government.

6. Objectives of Industrial
Relations
The fundamental objective of IR is to maintain sound
relations between employees and employers. Some
other objectives may be drawn as under:
 To enhance the economic status of the workers;
 To regulate production by minimizing industrial conflicts
through state control;
 To safeguard the interests of labour and management.
 To avoid industrial conflict or strife/struggle and develop
harmonious relations
 To raise productivity to a higher level in an era of full
employment by lessening the tendency to high turnover and
frequent absenteeism
 To establish and nurse the growth of an industrial democracy
 To eliminate, as far as is possible and practicable, strikes,
lockouts and gheraos by providing reasonable wages,
improved living and working conditions, and fringe benefits:
 To establish government control

7. Factors Influencing Industrial
Relations
Industrial Relations are influenced by various factors viz.,
economical, technological and institutional.
 Economical factors: these factors include economic
organizations, like capitalist, communist, mixed; the
structure of labour force, demand for and supply of
labour force, etc.
 Technological Factors: These factors include
computerization, mechanization, automation and
rationalization.
 Institutional factors: These factors include government
policy, labour legislation, labour courts, collective
agreements, employers’ federations, social institutions
like community, system of beliefs, attitudes of workers,
system of power, status, etc.

8. Approaches to Industrial Relations (Models)
 Unitary approach: (The values, goals, interests etc. of
employers and employees are considered as the same )
The unitary approach is based on the assumptions that
organization is an integrated group of people with single
authority / loyalty structure and set of common values,
interests and objectives are shared by all members of the
organizations. Farnham and Pimlott, who are pioneers of
this approach, mentioned that there is no conflict of
interests between those supplying capital to the enterprise
and those contributing their labor power. The owners of
capital and labor are complementary partners to the
common aims of production, profits and pay in which every
one in the organization has a stake.
 This approach has two important implications:
 Conflict is perceived as an irrational activity.
 Trade unions are regarded as intruders into the organization from
outside competing with management for the loyalty of employee.

9. Approaches to Industrial
Relations (Cont.)
 Pluralistic approach: The assumptions of this approach are:
 The organization is composed of individuals who are
divided into a variety of distinct sectional groups, each
with its own interests, objectives and leadership.
 The organization is in a permanent state of dynamic
tension resulting from the inherent conflict of interests
between the various sectional groups that requires to be
managed through a variety of roles, institutions and
processes.
The implications of this approach are:
 Conflict is both rational and inevitable.
 The trade unions have positive role to ensure the wellbeing
of the workers.

10. Approaches to Industrial
Relations (Cont.)
 Marxist approach/ Conflict model: (It is based on class
interests and class conflicts between labor and capital)
Marxist approach concentrates on the nature of the society
surrounding the organization. In the capitalist society there
is always class conflict. This class conflict which arises within
the society also affects industrial relations. Employer always
exploits the workers who only sell their labor power. The
views of this approach are:
 All conflicts stem principally from the division within the
society between those who own or manage the means of
production and those who have only their labour power
sell. Thus conflict is continuous and unavoidable.
 Trade unions not only enhance their collective industrial
power by reducing competition among individual
employees, but also provide a focus for the expression
and protection of the interests of the working classes.

11. Approaches to Industrial
Relations (Cont.)
 Social action approach: (This model discusses
the behavior of individual and group within the
organization) The pioneers of this approach are
C.J. Margerison and Max Weber. This approach
emphasizes upon understanding of interpersonal
relationship in the work. Social action approach
discussess the behavior of individual and group
within the organization. The assumption of this
approach are:
 People are human being.
 People are members of informal small groups.
 People have own personality level, individual behavior,
desire and social works are affected by some social and
psychological factors such as expectation, goals,
experience etc.

12. Approaches to Industrial Relations
(Cont.)
 System approach/ Dunlopian Model ( It considers the
industrial relations as a system that performs an
institutional procedure to make rules to govern
behavior of the people at work). John T. Dunlop is the
pioneer of this approach. System approach considers the
industrial relations as a system that performs an
institutional procedure to make rules to govern behavior of
the people at work. Dunlop suggested that industrial
relations system is a process created by four interrelated
elements comprised of –
 Certain actors.
 Environmental contexts.
 an ideology which binds the industrial relations system
together and
 a body of rules created to govern the actors at the work
place.

13. Approach / Model
 HRD approach: The HRD approach recognizes employees
as the greatest assets in an organization, believes that they
can be developed to an unlimited extent with proper
incentives, atmosphere and treatment. It involves :
 1) The greatest involvement of an employee in various
aspects of his work.
 2) ways to better adjust the individual to his job and
environment and
 3) the greatest concern for enhancing the capabilities of the
individual.
If the manager has a helpful attitude towards employees and
creates a healthy work environment , employees are willing
to give their best to the organization.

14. Importance of Industrial Relations
Proper industrial relations imply harmonious and peaceful
relations between labour and management. Following
benefits accrue from such a productive relationship:
 Establishing a sound industrial environment: Unilateral
action disappears; both parties consult each before
initiating any action; they primarily focus on goals that
realizable without overstepping their territories. This leads
to peaceful co-existence.
 Ensuring industrial democracy: The process of joint
consultation paves the way for industrial democracy. This
motivates workers.
 Bringing social peace: It helps minimizing corruption,
injustice and militancy within industries and thereby the
dream for social peace becomes a reality.

15. Importance of Industrial Relations cont.
 Improve productivity: Cordial relations between
labour and management ensure uninterrupted
production it becomes improve productivity.
 Benefits to worker: The Company would be in a
position to offer fair economic and non-
economic incentives to its employee.
 Helps industrial development: Industrial
development can be augmented through
maintains good industrial relations since the
production operation will go unhindered.
 Improves quality and reduces prices of
products.

16. Causes of Poor Industrial Relations
Industrial relations suffer because of the following reasons:
 Tendency to exploit workers by the employers.
 Inefficient management. Insufficiency causes dissatisfaction
among employers employees within Industry
 Uncompromising attitude of management towards the
grievances of workers.
 Authoritarian attitude of supervisors towards workers.
 Absence of responsible trade union.
 Absence of welfare activities and incentive measures.
 Unfavorable political and economic environment.
 Inter-union rivalry: Multiplicity of trade unions causes rivalry
and disputes within Industries.
 Disregard towards labour laws
 Excessive work load and improper work environment..

17. Participants / Variables in Industrial
Relation
 Workers and their organizations
 Managers and their organizations
 Role of the Government

18. Aspect of Industrial
Relations
1. Development of Healthy Labour-Management
Relations
 The existence of strong, well-organized,
democratic and responsible trade unions and
associations employers in an industry.
 Collective bargaining and a willingness to
accept voluntary arbitration.
 The welfare work undertaken by the
government, the trade unions and employers
creates and maintains good and healthy
labour-management relations.

19. Aspect of IR
2. Maintenance of industrial peace
 Machinery for the prevention and settlement of industrial disputes is
provided in the form of legislative enactment and administrative
action; works committees and joint management councils etc.
 The government has armed itself with appropriate powers to refer
disputes it when the situation gets out of control and the industry is
faced with economic collapse because of strikes, or when it is urgent
and in the public interest to so refer disputes for adjudication.
 The government has the power to maintain the status qua, and
exercises it when it discovers that, after a dispute has been referred
to adjudicator, a strike or lockout continues, and that strike or
lockout is likely to adversely affect the economic life of the
community.
 There is provision for bipartite and tripartite forms of the settlement
of disputes, which operate on the basis of the Code of Discipline in
Industry.
 Implementation and Evaluation Committees are created and
maintained for the specific purposes of ensuring the implementation
of agreements, settlements and awards, and of looking into any
violations of statutory provisions of the various labour laws.

20. Aspect of IR
3. Industrial Democracy
 There are Joint Management Councils which endeavor to improve the
working and living conditions of employees, to step up their productivity,
to encourage suggestions from workers, to assist in the administration of
labour laws and agreements.
 There is a recognition of human rights in an industry- a recognition of the
fact that “labour is no longer an article or a commodity of commerce”
which can be bought and disposed of at the whims and caprices of an
employer.
 There is increased labour productivity. The factors which contribute to
higher productivity are : improvement in the efforts and skill of the
workers, improvements in the production design and the layout and
methods of work etc.
 There is suitable material and social environment, top which workers may
adjust and adapt themselves while they are at work in an organization, for
it is this environment which would stimulate or depress them.

21. Functional Requirements of a
Successful Industrial Relations
Programs
 Top Management Support
 Sound personnel policies
 Adequate practices should be developed
by professionals
 Detailed Supervisory Training
 Follow-up of Result

22. Industrial Relations in
Bangladesh
 Democracy in the larger society is a prime and
essential condition for the development of
industrial relations. In Bangladesh, the extent of
democracy is very poor. It is surprising to note
that after independence the frequent changes in
government and emergence of military rules
during 1975-79 and 1982-1990 hampered the
democratic environment for industrial relations
in general and trade unionism in particular.
 See the Book

23. Challenges of IR: Emerging
Trends and Issues
 Globalization.
 Import liberalization.
 Privatization
 Information technology
 Downsizing
 Reengineering
 Workforce diversity
 Service and productivity movement
 Total quality Movement
 Free flow of manpower.