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1. Industrial relations
Definition
Nature
Significance,
Systems approach to IR
Prerequisites for good IR
Suggestions to improve IR

2. Industrial Relations:
It is the collective relationships between the mgt, employees
& the government in any industrial or non industrial
establishments.
Also called “employer- employee relationship” or “labor
management relationship”
The field of IR include the study of workers, trade union,
management, employer’s association & the state institutions
concerned with the legislation of employment.
- H.A. Cligg

3. Features:
1. No existence without labor & management
2. Has both conflict & co operation
3. Labor & management does not operate in isolation.
4. Involves the study of conditions conductive to labor &
management Co- operation
5. Study the law, rules, regulations, agreements, customs &
traditions& policy framework laid down by the government
for the co operation between the employees & employers

4. Nature of IR:
It is a mixture of co-operation & conflict. However
we try to solve the conflicts: some will remain becoz
of 3 reasons:
1. Different dimensions & orientation of their
interest
2. No mutually accepted yardstick or norms to
decide how far each should go to fulfill their
interest.
3. No neutral field s for the group to meet on

5. It is multidimensional in nature & are conditioned with 3
sets of determinants.
1. institutional factors :such as govt policy, labor
laws,union of workers & er’s
2. Economic factors: Economic ownershiplike
capitalist, socialist, composition of labor force
3. Technological factors :
Techniques of prodn.

6. Significance :
1. Economic progress
2. Industrial democracy
3. Encourage collective bargaining
4. Fair benefits to workers
5. Discipline & morale of workers
6. helps management in policy formulation

7. Parties to IR:
1. Workers & their organizations
2. Employer’s & organizations
3. Government

8. Systems approach to IR: (John Dunlop )
Focus on the participants in the process , environmental
forces & the output. It studies the interrelations of the IR
system
Environmental
forces
1. Market or
economic
restraints
2. Technology
3. Distribution
of power in
society
Participants
Union
Management
government
Output
Rules of the
workplace

9. Basic elements in systems approach :
1. Participants in the system
3 major participants or subsystem—
these subsystems interact with each other within the
economic, social, political framework of the country.
2.Environment:
It includes external forces which influence the participants
in IR system:

10. Dunlop identified 3 types of
forces as follows::
- Technological
characteristics
- Market or economic
constraints
- Locus or balance of power
1. Output:
It is the result of the interaction of the 3 parties which
is manifested in the rules of workplace

11. Objectives of IR:
Primary objectives of IR are improving the economic conditionsof
workers, increasing productivity & achieving industrial
democracy in individual enterprises
Tha Labor mangement committee of Asian regional conference of
(ILO) has recognized certain fundamental principles as objectives
of IR with a view to establishing harmonious labor mangement
relationship.

12. § Able to deal with mutual problems,freely, independently &
responsibly.
§ Settlement of any dispute amiably thru collective
bargaining.
§ The workers & the govt should be desirous of associating
with govt agencies in consideration of general , public,social &
economic measures affecting employers & workers relations
§ To check industrial conflicts& minimize the occurrence of
strikes, lock outs & gheraos.
§ To minimize labour turn over, absenteeism, by providing
job satisfaction to workers & increasing their morale.
§ To establish & develop industrial democracy based on
workers partnership in management of industry

13. § To facilitate govt control over industries in regulating
production& IR

14. Conditions / prerequisite for good IR:
1. History of IR
2. Economic satisfaction of workers
3. social & psychological satisfaction
4. off the job conditions
5. enlightened labor union
6. negotiation skills& attitude of management & workers
7. public policy &legislation
8. better education
9. business cycle

15. Causes of poor IR:
1. Uninteresting nature of work
2. Political nature of unions
3. Poor wages
4. Occupational instability
5. Poor behavioral climate

16. Suggestions to improve IR:
1. Develop constructive attitude towards each other.
2. Clarity of policies & procedure relating to IR to all
the organization
3. The personnel manager should remove any distrust
by convincing the union about the company’s integrity&
his own sincerity & honesty.
4. Any agreement should be properly administered
5. Management should encourage right kind of
leadership