Concept,scope and Approaches

1. UNIT -5
INDUSTRIAL RELATIONS- CONCEPT,
SCOPE, EVOLUTION, APPROACHES

2. DEFINITION
• The term ‘ Industrial Relations’ comprises ‘ ‘Industry’
and ‘relations’. Industry means any productive activity in
which an individual is engaged.
• Relations means ‘the relations that exist in the industry
between the employer and his work-force.

3. Quoted Definitions
Lester,
• “IR 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; and between
conflicting interests of the
individual, the group and the
community.
Bethel and others
• “IR is that part of
management which is
concerned with the
manpower of the
enterprise whether
machine operator, skilled
worker or manager”

4. Quoted Definitions
Dale Yoder
• “IR is the process of
management dealing with
one or more unions with a
view to negotiate and
subsequently administer
collective bargaining
agreement or labor
contract”.
J.T Dunlop
• “ the complex
interrelations among
managers, workers and
agencies of the
Government”

5. CONCEPT OF IR
• The concept of IR has undergone a considerable change since
the objective of evolving sound and healthy industrial relations
today is not only to find out ways and means to solve conflicts
or resolve difference but also to secure unreserved cooperation
and good will to divert their interest and energies toward
constructive channel.
• The problems of IR are therefore solved effectively only by
developing in conflicting social groups of an industrial
undertaking, a sense of mutual confidence, dependence and
respect at the same time encouraging them to come closer to
each other for removing misunderstanding if any, in a peaceful
atmosphere and fostering industrial pursuits for mutual
benefits.

6. Evolution of IR in India: 3
Phases
• 1st Phase –Mid of 19th century till the end of World War 1
• 2nd Phase – After 1st Phase till Independence of India
• 3rd Phase – After Independence of India

7. The 1st phase of Evolution
• British government bent on imposing penalties and restricting
competition
• Later half of the 19th century- legislative enactments passed.
• Rise of the 1st world war led to socio-economic and political
turmoil.
• Intense labour unrest as earnings did not meet the price rise.
• Election of representatives to central and provincial
legislatures for giving rise to social enactments.
• 1919- International Labour Organization(ILO) was
established.
• 1920- AITUC & several other Trade Unions emerged

8. The 2nd phase of
Evolution
• Emphasis on improvement of working conditions.
• Social security legislations
• Trade Dispute ACT, 1929 enacted which had provisions for the
settlement of disputes
• Royal Commission on Labour(1929 - 1931) – conducted
survey on labour problems in India.
• Govt. of India- worked on legislations and on the objective of
bringing all the interests together.
• TRIPARTITE consultative system adopted.
• 1st Tripartite labour conference held at New Delhi under the
Chairmanship of Dr. B.R Ambedkar and Involved India
Labour conference & Standing Labour committee.

9. The 3rd & ongoing Phase
of Evolution
• After Independence
• Industrial Truce Resolution Adopted in 1947 at a Tripartite
Conference.
• Emphasis on promotion of mutuality of interest between
labour and capital, Industrial Peace & grant of fair deal to
workers.
• Foundation of Constitutions and labour policies were laid
down.
• Emphasis on state intervention & Industrial democracy.
• Many legislations enacted
• LPG, Globalisation and its impact on IR
• Current Scenario.

10. Approaches to IR
• TRIPARTITE APPROACH
• SYSTEM APPROACH – JOHN DUNLOP 1958 (Dunlop model)
• UNITARY APPROACH –
• PLURALIST APPROACH – FLANDERS-1970 (OXFORD
MODEL)
• MARXIST APPRAOCH - LENIN- 1978(CLASSICAL /RADICAL
APPROACH)
• SOCIOLOGICALAPPROACH
• GANDHIAN APPROACH – MK GHANDHI
• PSHYCHOLOGICALAPPROACH
• HUMAN RELATIONS APPROACH– KEITH DAVIS(NEO-
CLASSICAL APPROACH)

11. TRIPARTITE APPROACH
PARTIES TO IR(ACTORS)
IR is a complex system comprising of interrelation among
workers(employees), Managers(employers) and Government.
EMPLOYEES
EMPLOYERS
GOVERNMENT
COURTS AND
TRIBUNALS
EMPLOYERS
ASSOCIATIONS
TRADE
UNIONS
INDUSTRIAL
RELATIONS

12. TRIPARTITE APPROACH
EMPLOYEES with their various characteristics(skills, knowledge, Attitude
etc.) affect and are affected by the system of IR. They perceive IR as a means
to improve their conditions of employment, sort out their grievance and
exchange their ideas with management, thus participate in Organizational
decision making.
EMPLOYERS: IR helps developing machinery to avoid disputes, creating and
sustaining employee motivation, ensuring employee’s commitment, achieving
higher efficiency, negotiating terms and conditions of employment, sharing
decision making with employees.
GOVERNMENT : Role of Govt. changes with the change in industrial
environment and mgmt. perspectives. Till 19th century, Govt. has adopted the
Policy of laissez faire, but towards the end of 19th century, Govt. started
intervening in the matters of IR. Today Govt. has a regulatory role and uses
machinery of Labour courts, Industrial Tribunals, enquiry committees etc.

13. SYSTEM APPROACH
Environmental
forces
• Market &
Budgetary
Restraints
• Technology
• Distribution
of power in
society
Participation
in the system
• Union
• Management
• Government
Outputs
• Rules of the
Workplace

14. SYSTEM APPROACH/
DUNLOP MODEL OF IR 1958
• JOHN DUNLOP developed systems approach to IR. It focuses on
the participants in the process, environmental forces and the output.
It study the interrelations among the different facets of IR’s systems.
• Basic element of systems Approach-
• Participants: Workers and their Organizations, Management and
their representatives, Government agencies like labour courts.
• An Ideological linking “ A set of ideas and beliefs commonly held
by the actors that helps to build or integrate the system together as
an entity.”
• Three types of Environment: Economic sub-system, Technological
Sub-system and Political sub-system.

15. UNITARY APPROACH
• In UNITARY approach, the Organization is perceived as an
integrated and harmonious system, viewed as one happy
family.
• A core assumption of Unitary approach is that management
and staff, and all members of the organization share the same
objectives, interests and purposes; thus working together,
hand-in-hand, towards the shared mutual goals.
• Unitary has a paternalistic approach where it demands loyalty
of all employees
• Trade Unions are deemed as unnecessary and conflict is
perceived as disruptive.

16. PLURALISTIC APPROACH
• In Pluralism the organization is perceived as being made up of
powerful and divergent subgroups- Management and Trade unions.
• This approach sees conflicts of interest and disagreements between
managers and workers over the distribution of profits as normal and
inescapable.
• The role of mgmt. would less towards enforcing and controlling and
more towards persuasion and coordination.
• Trade Unions are deemed as legitimate representatives of employees.
• Conflict is dealt by collective bargaining and is viewed not necessarily
as a bad thing and if managed could in fact be channelled towards
evolution and positive change.
• Realistic managers should accept conflict to occur.
• There is greater propensity for conflict rather than harmony.

17. MARXIST APPROACH
• This perspective focuses on fundamental division of interest
between capital and labor, and sees workplace relations against
this background.
• It assumes that conflicts are a by product of Capitalist system.
• It is concerned with structure and nature of society and
assumes that the conflict in employment relationship is
reflective of the structure of the society.
• Conflict is seen as inevitable and Trade unions are a natural
response of workers to their exploitation by capital.

18. PSYCHOLOGICAL
APPROACH
• Psychologists are of the view that problem of industrial
relations are deeply rooted in the perception of attitude of focal
participants.
• Management and labors perceive each other differently and
consider the other as less dependable and more deficient in
thinking about the emotional characteristic and inter-personal
relations.
• Conflicts emerges as a result of negative perception of
behaviour of the actors(mgmt. and workers).
• Interpersonal and intergroup relations breed disharmony in the
system.

19. SOCIOLOGICAL APPROACH
• Differences in personal factors like education, attitude,
culture, behaviour, emotions etc. create conflicts and
competition among members of industrial society.
• IR are shaped by society as there are many factors inside
and outside industry that affect IR’s.
• The process of change makes IR more complex, which
would further complicate with time.

20. SOCIO-ETHICAL APPROACH
• Good IR can be maintained only when both labours and
management realize their moral responsibility in
contributing to the said task through mutual cooperation
and greatest understanding of each other’s problem.
• Both goal of labour- mgmt. relations may be stated as
max. productivity, adequate understanding among parties
to IR regarding the roles that other parties play, and
willingness among parties to cooperate as partners in IR.

21. HUMAN RELATIONS
APPROACH
• When resources are not managed properly, problem of
Industrial Relations surfaces, which can only be managed by
understanding and managing the dynamics of human
behaviour at individual, group and organizational level.
• A common denominator in all conflicts is the dissatisfied needs
of individual.
• The approach also stresses that human need keep on changing
right from basic needs to self-actualization, and attention needs
to be drawn to them.
• At the same time suitable motivational strategies should be
used for optimum employee satisfaction.

22. HRD APPROACH
• It recognizes employees as the greatest assets in an
organization
• It believes that they can be developed to unlimited extent
with proper incentives, atmosphere and treatment.
• The methodology used in HRD Approach includes
diagnosis of the problem and designing interventions to
bring about necessary changes.

23. V.V.GIRI APPROACH
• It emphasizes the encouragement of mutual settlement of
disputes, collective bargaining and voluntary arbitration.
• This approach lays stress on internal settlement of
disputes to compulsion from outside and voluntary
arbitration and collective bargaining rather than
compulsory arbitration.

24. GANDHIAN APPROACH
• It is based upon fundamental principles of truth, non-
violence and non-possession.
• If employers follow the principle of trusteeship, there is
no scope for conflict.
• Workers should seek redressal through collective action.
• Workers can resort to ‘Satyagraha’ to have their
grievances redressed.
• Gandhiji accepted that workers can go on strike, but this
should be exercised in a peaceful and non-violent manner,
and this should be the last resort.

25. CONFLICT & CO-OPERATION
• According to Douglas McGregor conflict & cooperation are two
states in the continuum of IR.
• Cooperation The dynamics of cooperation lie in the recognition of a
sphere of common interest. Cooperation between Union and
Management, differing in economic power, wealth and education,
depends primarily on their ability and willingness to make contacts at
points of mutual concern.
• Conflict Generally, some degree of conflict between the management
and the Union is taken to be inevitable. Conflict is essential to
survival of both Union and Mgmt., and is not always bad and has
certain constructive aspects also. But a recurring conflict needs to be
channelized along the least destructive lines. And for this, conflict
resolution measures- both Voluntary and statutory- must be taken for
good IR to prevail and industrial harmony to be achieved.

26. BIPARTISM