The document discusses various concepts and approaches related to industrial relations. It defines industrial relations as the relationship between management and labor. It discusses the evolution of industrial relations in India from ancient times to the post-independence era. It also outlines several key approaches to industrial relations including the unitary, pluralist, Marxist, Gandhian, and systems approaches. Each approach provides a different theoretical perspective on workplace relations and the role of unions, management, and conflict.

1. Industrial relations
Concept, Scope ,
Evolution,Approaches

2. What are Industrial Relations?
• The concept of Industrial relations has been defined using various terminologies, but in
the strictest sense, it is essentially the relationship between management and labour.
The full concept of industrial relations is the organization and practice of multi-
pronged relationships between labor and management, unions and labor, unions and
management in an industry.
• Dale Yoder defines it as a "whole field of relationships that exists because of the
necessary collaboration of men and
women in the employment process of an industry.“
• ILO defines it as- “social relation in production”
Industrial relations includes
1.
2.
3.
4.
Employer – employee relations
Employers, Trade unions activities
The activities of state design to modify regulate and control relations between employers and
employees also become a part of industrial relations
Employer employee relationship under public services has also came to covered by the term

3. Evolution of Industrial Relations:
•
• The evolution of industrial relations in India began a long time ago. The caste system greatly influenced the
ancient industries and their development. Due to successive foreign invasions in India, the living conditions
of slave and artesian couldn't be differentiated.
Furthermore, under the autocratic regime of Muslim rulers, the conditions of employees worsened. Wages
were not guaranteed, the living conditions of workers were harsh, and there was no proper management.
The coming of the British didn't improve the working conditions. After some time, however, most Indian
industries were modelled after the British system of business, and this led to growth in various sectors.

4. CONT...

• The First World War was an opportunity in disguise for local factories in India. Prices of
virtually all products went up and profits soared, however, wages of lower
employees were still the same. There were various strikes and disputes between
management and employees. During this time, the Workmen's Compensation Act (1923),
the Trade Union Act (1926), and the Trade Disputes Act (1917) were established. While
the wages of employees remained the same, they were given a
 certain share of profits made by their hiring industry. Strikes, however, were sometimes
prohibited under the Emergency Rules. The years following World War II involved the
most workers' upheaval, and saw the establishment of Industrial Employment Act
(1946) and Industrial Disputes Act (1947).

5. CONT…

• The post-independence era saw a developing relation between industry and
labour. A conference called the Industrial Truce Resolution took place
in 1947, and foresaw the establishment of the Minimum Wages Act, Factories
Act, and Employees State Insurance Act in 1948. This ensured peace
between labor and industry. While industrial relations in India have evolved
a long way, some features of the early system still exist today. Modern
industrial relations are dynamic , and may integrate industrial policies of
American and British businesses.

6. • Dominant aspect of industrial relations
1. Cooperation – between labour and capital (
stands for owners of the business Enterprise
who supply the capital and own the Final
product)
2. Conflict

9. • Approachesto industrial relations
The problems of IR have their origin in the perceptions of the management,
unions and the workers.
The conflicts between labour and management occur because every group
negatively perceives the behaviour of the other i.e. even the honest intention
of the other party so looked at with suspicion.
•
• The problem is further aggravated by various factors like the income, level
of education, communication, values, beliefs, customs, goals of persons
and groups, prestige, power, status, recognition, security etc are host
factors both economic and non-economic which influence perceptions OF
unions and management towards each other.
Industrial peace is a result mainly of proper attitudes and perception of the
two parties.

10. 2. 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 functions.
 Though the main function of an industry is economic, its social consequences are also important such as
urbanization, social mobility, housing and transport problem in industrial areas, disintegration of family structure,
stress and strain, etc.
 As industries develop, a new industrial-cum-social pattern emerges, which provides general new relationships,
institutions and behavioural pattern and new techniques of handling human resources. These do influence the
development of industrial relations.

11. 3 .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.

12. • Theoretical perspectives
• Industrial relations scholars have described three major
theoretical perspectives or frameworks, that contrast in their
understanding and analysis of workplace relations. The three
views are generally known as unitary, pluralist and radical.
• Each offers a particular perception of workplace relations and
will therefore interpret such events as workplace conflict, the role
of unions and job regulation differently. The radical perspective
is sometimes referred to as the "conflict model", although this is
somewhat ambiguous, as pluralism also tends to see conflict as
inherent in workplaces. Radical theories are strongly identified
with Marxist theories

14. Unitary Perspective
• In unitary, 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. Furthermore, unitary has a paternalistic
approach where it demands loyalty of all employees.
Trade unions are deemed as unnecessary and conflict is perceived as
disruptive.

15. Pluralistic-Perspective
• In pluralism the organization is perceived as being made up of powerful and divergent sub-groups - 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.
Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and
co-ordination. 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 a
greater propensity for conflict rather than harmony.
They should anticipate and resolve this by securing agreed procedures for settling disputes.
The implications of this approach include:
1. The firm should have industrial relations and personnel specialists who advise managers and
provide specialist services in respect of staffing and matters relating to union consultation and
negotiation.
Independent external arbitrators should be used to assist in the resolution of disputes.
Union recognition should be encouraged and union representatives given scope to carry out their
representative duties
Comprehensive collective agreements should be negotiated with unions
2.
3.
4.

16. Marxist Perspective
• The Marxist approach looks at industrial relations from a societal perspective. The basic assumption of this
approach is that industrial relations under capitalism are an everlasting and unavoidable source of
conflict
• According to this approach, industrial conflicts are the central reality of industrial relations, but open
conflicts are uncommon.
• The Marxist approach views industrial disputes as a class struggle and industrial relations as a
politicized concept and an element of the class struggle.
• As per the Marxist approach, the understanding of industrial relations requires an understanding of
the capitalized society, the social relations of production and the mechanism of capital accumulation.
The Marxist approach views the power relationship between the two classes, namely, the employer
(capital) and the employee (labour), as the crux of the industrial relations. Both classes struggle hard to
consolidate their respective positions so that they can have a greater leverage over the other in the process of
bargaining. The proponents of this approach perceive that the employers can survive longer without labour
than the employees can without work. As far as theory is concerned, the compensation payable to the
employees is an outcome of the power struggle.
• For instance, the employers seek to maximize their profits by paying less compensation to the employees,
while the latter resist such attempts, and this resistance results in industrial conflicts. However, the weakness
of this theory is that it is narrow in approach as it views industrial relations as a product or outcome of the
industrial conflict.
.

17. Gandhian Approach
• Gandhi an approach to employer-employee relations is based on the
fundamental principles of truth, non-violence and non-possession. If the
employers follow the principle of trusteeship, there is no scope for conflict of
interests between them and labour.
• Workers can use non-cooperation (Satyagraha) to have their grievances redressed.
Gandhi accepted the workers’ right to go on strike but they should exercise this right in
a peaceful and non-violent manner. Workers should resort to strike for just cause and
after the employers fail to respond to their moral appeals.
Gandhiji suggestedthat in the process of resolving disputes
1.Workers should avoid forming unions .
2.Workers should seek redressal of their reasonable demands only through collective action.
3.They should avoid strikes as far as possible in industries of essential service.
4.Workers should resort to strikes only as a last resort after all other legitimate measures have
failed.
5.If they have to organise a strike, trade unions should seek by authority from all workers to
do so, use non-violent methods and remain peaceful.
6.When direct settlement fails, workers should, as far as possible, take recourse to voluntary
arbitration.

18. Giri Approach:
• According to Shri V.V. Giri, the late President of India, collective bargaining’s and mutual
negotiations between management and labour should be used to settle industrial disputes.
• He suggested that there should be bipartite machinery in every industry and every unit of the
industry to settle differences from time-to-time with active encouragement of Government.
Outside interference should not encroach upon industrial peace.
• Giri’s stress was on voluntary efforts of the management and the trade unions to wind up their
differences, through voluntary arbitration.
• He was against compulsory adjudication which cuts the very root of the trade union
movement.
• He advocated collective bargaining for securing industrial peace.
• Thus, the Giri Approach to employer-employee relations implies the encouragement of mutual
settlement of disputes, collective bargaining and voluntary arbitration.
• The essence of this approach is internal settlement in preference to compulsion from
outside and voluntary arbitration and collective bargaining rather than compulsory
arbitration.

19. SYSTEM APPROACH

20. The System Approach
The system approach was developed by J. P. Dunlop of Harvard University in 1958.
•
• According to this approach, individuals are part of an ongoing but independent social system. The
behaviour, actions and role of the individuals are shaped by the cultures of the society.
• The three elements of the system approach are input, process and output. Society provides the cue
(signal) to the individuals about how one should act in a situation. The institutions, the value system
and other characteristics of the society influence the process and determine the outcome or
response of the individuals.
The basis of this theory is that group cohesiveness is provided by the common ideology shaped by the societal
factors.
According to Dunlop, the industrial relations system comprises certain actors, certain contexts, and an
ideology, which binds them together and a body of rules created to govern the actors at the workplace
and work community. The actors in the system are the managers, the workers and their representatives, and the
government agencies.
Substantive rules and Procedural rules.
• The substantive rules determine the conditions under which people are employed. Such rules are
normally derived from the implied terms and conditions of employment, legislations, agreements,
practices and managerial policies and directives.
• The procedural rules govern how substantive rules are to be made and understood.