This presentation is prepared by the MBA students of SAIM college Nepal by Sujit Kumar Shah and Smirti Aryal for the Academic purpose. Hope it will be beneficial to everyone who are looking into Industrial Relations topics. Thanks.

1. POLITICAL & ECONOMICAL FACTORS IN IR
Presented by
Sujit kumar shah
Smirti Aryal
PRESENTATION ON

2. POLITICAL FACTORS
• Government actions which affects the operations of a business and labor problems.
• These actions may be on local, regional, national or international level. Business owners and
managers pay close attention to the political environment to measure how government actions
will affect their company.

3. POLITICAL FACTOR AFFECTING IR
• Political Institutions
• Political Philosophy
• Attitude of Government
• Ruling Elite
• Trade Union

4. Political Institutions
• Official name: Government of Nepal
• Form of state: Federal Republic of Nepal
• Head of state: The President
• The executive: The Prime minister
• National legislation: The constituent assembly with 601 members. (575 elected and 26 appointed by
council of ministers)
• Legal system: The Supreme court.
It acts as the court of appeal and review, and has power of original jurisdiction.
Sub divided into: special court, province court and district court

5. Political Philosophy
• Anarchism
• Capitalism
• Communism
• Egalitarianism

6. Ruling Elite
• The ruling class is the social class of a given society that decides upon and sets that society's
political agenda.
• Some Ruling Elite in IR of Nepal are
Bharams
Chhetri
Newars

7. TRADE UNION
• The All Nepal Federation of Trade Unions (ANTUF)
• The Federation had its origins in the Nepalese Civil War and was created by activists from
the Communist Party of Nepal (Maoist). Following the peace accords in 2006.
• The ANTUF was founded in 2007 with 35 affiliated organizations.
• In January 2019, following the creation of the Nepal Communist Party, commenced for a merger
between the ANTUF and the General Federation of Nepalese Trade Unions (GEFONT).

8. ROLES OF POLITICAL FACTOR
• It helps in Implementation of Laws
• Provides Jude and Jury for establishing proper relation between employee and the employer.
• Helps for appropriate Collective Bargaining
• Provide Welfare and Social Security Benefits

9. ECONOMIC ENVIRONMENT
• It refers to all the external economic factors that influence buying habits of consumers and
businesses and therefore affect the performance of a company.
• These factors are often beyond a company's control, and may be either large-scale (macro) or
small-scale (micro).
• The economic environment consists of all the macroeconomic and microeconomic factors that
affect how we do business and exist in an economy.
• Environmental economics is a sub-field of economics concerned with environmental issues.

10. ECONOMIC FACTOR AFFECTING IR
• Working Condition
• Salary and Wages Structure
• Bonus and Profit Sharing
• Job Security
• Social Security

11. Working Condition
• The conditions in which an individual or staff works effectively, including but not limited to such
things as amenities, physical environment, stress and noise levels, degree of safety or danger, etc.
• Working conditions are at the core of paid work and employment relationships.
• working conditions cover a broad range of topics and issues, from working time (hours of work,
rest periods, and work schedules) to remuneration, as well as the physical conditions and mental
demands that exist in the workplace.

12. Salary and Wages Structure
Monthly Salary: Rs. 13,450
Daily: Rs. 512
Hourly: Rs. 69
provident fund and gratuity contributions worth 18.33% of Salary
Festival Allowance: 8.33% of basic salary

13. Bonus and Profit Sharing
Bonus to be distributed by the profit making enterprise:
(1) each profit
Making enterprise shall have to allocate an amount equivalent to 10% percent of its net income of
one fiscal year for bonus to the employees.
(2) while assessing the net income of any enterprise derived in any one
Fiscal year pursuant to sub-section (1), the following amounts shall have to deduct from the net
income assessed, pursuant to income tax act, 2058 (19)

14. Job Security
• Job security is the probability that an individual will keep their job
• It is a job with a high level of security such that a person with the job would have a small chance
of losing it.

15. SOCIAL SECURITY
Entitlement to social security: (1) the following Nepali citizens shall have the right to get the social security allowance:
(a) senior citizens
(b) Indigent
(c) Incapacitated and helpless persons
(d) Helpless single women
(e) Citizens with disabilities
(f) Children
(g) Citizens unable to take care themselves
Personal accident insurance (provident fund): A lump sum of 125,000 rupees is paid. Survivor allowance (social assistance): 2,000 rupees a
month is paid to widows aged 60 or older; 300 rupees for each child for up to two children.

16. ROLES OF ECONOMIC FACTORS
• It helps in composition of the workforce
• It helps in the smooth source of labor supply
• It helps in determination of wages and Salaries
• Capitalism

17. POLITICAL IMPACT ON IR
• The government is turning completely capitalistic in its approach in the present days.
• The rules and regulations are designed in favor of both employees and employer and conflicts are
seen very nominal.
• Fall in the membership of the trade unions.
• Labor unions are not being able to offer the collective bargaining coverage to all jobs in a country
• It has been reducing the faith that workers had on the trade unions along with the influence.
• The changes and impacts are being felt in the formal organizational conditions as well as the
power of the employers, collective bargaining and industrial relations systems.

18. ECONOMIC IMPACT ON IR
• Organizational economics is primarily concerned with the obstacles to coordination of activities
inside and between organizations.
• Highly flow of the labor
• Well defined incentives policies to the labor with minimum salary package and working hours.
• Maximum jobs creations.
• Beneficial with high level of security