3. INDUSTRIAL RELATIONS
Industrial relations 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).
4. CONCEPT 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.
5. ACTORS IN IR SYSTEM
Three main parties are directly involved in industrial
relations:
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.
Employees: 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.
6. SCOPE OF IR
Collective bargaining
Machinery for settlement of industrial disputes
Standing orders
Workers participation in management
Unfair labor practices
7. FUTURE IR SCENARIO
The population of the country is now more them 100 cores.
Unemployment which is acute today will further be aggravated leading to
a large unskilled population who cannot be employed in industries which
may need more and more qualified, skilled and technical hands.
Automation, mechanization , robotisation etc., will greatly reduce demand
for unskilled while creating short supply of trained and experience hands.
MNCs and big business houses and corporate bodies will compete
acquiring the cream of the country while a large number will be flying out
of the country for better career opportunities abroad. Downsizing the
industries and gradual reduction in industrial employment even seen in the
recent past can lead to grave unemployment problem and labor unrest
adversely affecting industrial growth and economy of the country. But
worker profile will be different who will require all care and attention to
work in competitive and challenging environment.
8. CONT…...
With the changes, the economic, cultural scenario of this Century is going
to be radically different. The Changing industrial climate in terms of
vision, value and mission will dictate the norms of business ethics.
There are changes in the nature of labor force, union approaches to
management process, physical and behavior characteristics of internal
forces, all affecting the strategies of organization .
But at the same time, we must face the reality that industrial relations is a
function of balance of power between collective groups. Whereas sound
HRM practices should, and will, prevail at the level of individual
employee relationship
9. CONT…...
For maintaining, good IR, in future, responsibility should be shifted from
HR Manager to line manager. It has to start from selection. People should
be raw talent, Expectations must be set, organization has from these
people, not by setting out the steps they must take, but by communicating
the end result that they must ensure. Individuals have to be strengthened
and putting them at right fit for their talent.
HR manager should train line manager for this new role and arm them
with HR tools so they could contribute effectively in keeping good IR and
develop HR. And above all , you need to create a better workplace, so that
employees are highly engaged in their work. Engaged employees treat
organization's concerns as their own, because they identify them closely
with the company. The result is higher productivity, better reward for
people and of course good IR and HRD.
10. FUTURE ISSUES FOR IR
In these circumstances the issues which IR will be called upon to
address, in particular in Asia, need to be identified.
Employers are now compelled to view IR and HRM from a strategic
perspective; in other words, not only from the traditional viewpoint of
negotiating terms and conditions of employment and performing a
personnel and welfare function. IR and HRM are directly relevant to
competitiveness, and how they are managed will impact on enterprise
performance, e.g.
its productivity and quality of goods and services, labor costs, quality
of the workforce, motivation, prevention of disputes and not only their
settlement, and aligning employee aspirations with enterprise
objectives.