This document discusses industrial relations, which refers to the relationships between employers and employees within an industry. It covers the meaning of industrial relations, its importance, objectives, and present status in India. Industrial relations aim to create cooperation between labor and management to maintain harmonious relationships and avoid conflicts. They help establish workplace democracy, economic growth, and improved employee morale. The document also outlines several conceptual models that frame industrial relations, including psychological, sociological, human relations, socio-ethical, and Gandhian approaches.

1. Industrial relations is an art,
Industrial Relations

2. Introduction
 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).

3. Meaning
 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.

4.  In the broad sense, industrial relations cover all such relationships that a business enterprise
maintains with various sections of the society such as workers, state, customers and public
who come into its contact.
 In the narrow sense, it refers to all types of relationships between employer and employees,
trade union and management, workers and union and between workers and workers. It also
includes all sorts of relationships at both formal and informal levels in the organization.
 The term ‘industrial relations’ has been variously defined:
o Industrial relations are viewed here as the “ process by which people and their
organization interact at the place of work to establish the terms and conditions of
employment.
o J.T. Dunlop defines industrial relations as “the complex interrelations among
managers, workers and agencies of the governments”.
o According to Dale Yoder “industrial relations is the process of management dealing
with one or more unions with a view to negotiate and subsequently administer collective
bargaining agreement or labour contract”.

5. Importance of Industrial Relations
•It establishes industrial democracy
•It contributes to economic growth
and development
•It improves morale of he work force
•It ensures optimum use of scare resources
•It discourages unfair practices on
the part of both management and
unions
•It prompts enactment of sound labour legislation

6. • It ensures uninterrupted production.
• It reduces the industrial disputes.
• It has brought a mental revolution.
• It helps in reducing wastages

7. Objectives of IR
 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.
 To avoid industrial conflict or strife and develop
harmonious relations, which are an essential factor in the
productivity of workers and the industrial progress of a
country.
 To raise productivity to a higher level in an era of full
employment by lessening the tendency to high turnover and
frequency absenteeism.
 To establish and promote the growth of an industrial
democracy based on labor partnership in the sharing of
profits and of managerial decisions, so that ban individuals
personality may grow its full stature for the benefit of the
industry and of the country as well.

8.  To eliminate or minimize the number of strikes,
lockouts and gheraos by providing reasonable wages,
improved living and working conditions, said fringe
benefits.
 To improve the economic conditions of workers in the
existing state of industrial managements and political
government.
 Socialization of industries by making the state itself a
major employer
 Vesting of a proprietary interest of the workers in the
industries in which they are employed.

9. Present Status of IR
 Prior to 1991, the industrial relations system in India
sought to control conflicts and disputes through
excessive labor legislations. These labor laws were
protective in nature and covered a wide range of
aspects of workplace industrial relations like laws on
health and safety of labors, layoffs and retrenchment
policies, industrial disputes and the like. The basic
purpose of these laws was to protect labors. However,
these protectionist policies created an atmosphere
that led to increased inefficiency in firms, over
employment and inability to introduce efficacy. With
the coming of globalization, the 40 year old policy of
protectionism proved inadequate for Indian industry to
remain competitive as the lack of flexibility posed a
serious threat to manufacturers because they had to

10.  With the advent of liberalization in1992, the industrial
relations policy began to change. Now, the policy was
tilted towards employers.
 Employers opted for workforce reduction, introduced
policies of voluntary retirement schemes and flexibility in
workplace also increased. Thus, globalization brought
major changes in industrial relations policy in India. The
changes can be summarized as follows:
 Collective bargaining in India has mostly been
decentralized, but now in sectors where it was not so, are
also facing pressures to follow decentralization.
 Some industries are cutting employment to a significant
extent to cope with the domestic and foreign competition
e.g. pharmaceuticals. On the other hand, in other
industries where the demand for employment is
increasing are experiencing employment growths.

11.  The number of local and enterprise level unions has
increased and there is a significant reduction in the
influence of the unions.
 Under pressure some unions and federations are
putting up a united front e.g. banking.
 Another trend is that the employers have started to
push for internal unions i.e. no outside affiliation.
 HR policies and forms of work are emerging that
include, especially in multi-national companies, multi-
skills, variable compensation, job rotation etc. These
new policies are difficult to implement in place of old
practices as the institutional set up still needs to be
changed.
 HRM is seen as a key component of business strategy.
 Training and skill development is also receiving
attention in a number of industries, especially banking
and information technology.

12. Concepts and models of Industrial
Relations
The IR can be viewed from the various angles which may
range from the economic to social, political to legal and
psychological and managerial:
1. Psychological Approach: The psychologists are of the
view that the problem of industrial relations are deeply
rooted in the perception and the attitude of focal
participants.
1. Sociological Approach: Industry is a social world in
miniature. The management goals, workers’ attitudes,
perception of change in industry, are all, in turn, decided
by broad social factors like the culture of the institutions,
customs, structural changes, status-symbols, rationality,
acceptance or resistance to change, tolerance etc.
Industry is, thus inseparable from the society in which it

13. 3 Human Relations Approach: Among all the areas of
management, perhaps one of the most delicate and
complex is concerned with human resources
management. Their handling is radically different from
that of physical, material and financial resources
because these are not inanimate or passive but are
composed of pulsating human beings having their own
emotions, perception, attitude, personality.
Socio-Ethical Approach: Though not much widely
accepted but one of the often discussed approach to
industrial relations is the socio-ethical approach. This
approach holds that industrial besides having a
sociological base does have some ethical ramifications.
As good industrial relations can be only maintained when
both the labour and management realize their moral
responsibility in contributing to the said task through

14. 5. Gandhian Approach: