Industrial relations involve the relationships between management and workers in a business. It aims to develop trust and cooperation to avoid conflict. Industrial relations are important for raising productivity, establishing industrial democracy, and reducing wastage and disputes. However, poor industrial relations can be caused by a lack of communication between management and workers about work methods and issues. The scope of industrial relations includes protecting worker interests, reasonable wages, good conditions, security, unions, and bargaining.

1. INDUSTRIAL RELATION
IT’S SCOPE &
IMPORTANTS
Team member :-
Jignesh H kalathiya

2. Definition
Industrial Relation is deals with the manpower of the
enterprise and the management which is concerned with –
whether machine operator, skilled worker or manager. it is
essentially the relationship between management and labor.
Trust and respect between managers and employees are
vital components in creating good industrial relations.

3. 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, works
and union and between workers and workers. It also includes all sorts of
relationships at both formal and informal levels in the organization.

4. Importance of Industrial Relations
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.

5. Reduced Wastage – Good industrial relations are maintained on the
basis of cooperation and recognition of each other. It will help increase
production. Wastages of man, material and machines are reduced to the
minimum and thus national interest is protected.
Reduction in Industrial Dispute - Cordial Industrial relations helps in
reducing industrial disputes, disputes are reflections of the failure of
basic motivation in order secure satisfaction among employees.
Economic growth and Development - It promotes economic growth
and development, effective industrial relations lead to increase efficiency
and higher productivity, which ultimately results in economic
development.

6. Causes of Poor Industrial Relations
Perhaps the main cause or source of poor industrial relations
resulting in inefficiency and labour unrest is mental laziness on the part of
both management and labour. Management is not sufficiently concerned to
ascertain the causes of inefficiency and unrest following the laissez-faire
policy, until it is faced with strikes and more serious unrest. Even with
regard to methods of work, management does not bother to devise the
best method but leaves it mainly to the subordinates to work it out for
themselves.

7. Scope
The scope of industrial relations includes all aspects of
relationships such as bringing cordial and healthy labour management
relations, creating industrial peace and developing industrial democracy.
•
•
•
•
•
•
by safeguarding the interest of the workers;
by fixing reasonable wages;
by providing good working conditions;
by providing other social security measures;
by maintaining healthy trade unions;
by collective bargaining.

8. Human relations approach
Human resources are made up of living human
beings. They want freedom of speech, of thought of
expression, of movement, etc. When employers treat
them as inanimate objects, encroach on their
expectations, throat-cuts, conflicts and tensions arise.
In fact major problems in industrial relations arise out
of a tension which is created because of the employer’s
pressures and workers’ reactions, protests and
resistance to these pressures through protective
mechanisms in the form of workers’ organization,
associations and trade unions.

9. CASE STUDY
Ramesh was just promoted as a shift officer. The
promotion became effective when his immediate superior Mr.
Sharma was out of town for a few days. Due to illness of
Ramesh’s subordinate the work schedule was not being met.
He decided to pitch in and help spending bout four hours daily
in production. When Mr. Sharma returned to his work,
Ramesh is not available, as he is not working on the shop
floor. He is upset and tells him that it is the function of the
supervisor to accomplish work with and through other people
and not do it himself.