The document provides an overview of industrial relations, including: 1. It defines industrial relations as the relationships between employees, employers, and labor unions within an organizational setting and discusses the need to maintain cooperation and avoid conflict. 2. It outlines the perspectives and objectives of industrial relations from the viewpoints of workers, employers, society, and government. Key objectives include establishing sound relationships, avoiding conflicts, and promoting industrial democracy. 3. It discusses the scope of industrial relations, including labor relations, employer-employee relations, and mechanisms for handling conflicts. Maintaining healthy relations and industrial peace are also identified as main aspects.

1. 14-04-2016
INDUSTRIAL RELATION, WHAT, WHY AND WHEN?
Lecture given by
Hitesh Kumar Joshi at National HR Conclave Nirma University Ahmadabad
Content Compile by: Hitesh Kumar Joshi,
Human Scientist and Researcher, Management Guru and Motivator, Master Speaker and Preacher,
Spiritual philosopher and Palmist, Master Trainer and Lead Auditor, Arbitrator and Advisor.
Contact: Cell no 9824214757 email: hitraj29@iitbombay.org
_______________________________________________________________________
My Dear Students of MBA and LLB Respected HRians, HR Friends and Expert of HR
and IR people
Industrial relations has become one of the most delicate and complex problems
of modern industrial society. Industrial progress is impossible without
cooperation of labours and harmonious relationships. Therefore, it is in the
interest of all to create and maintain good relations between employees
(labour) and employers (management).
Definition of Industrial Relations
Industrial relation is defined as relation of Individual or group of employee and
employer for engaging themselves in a way to maximize the productive activities.
In the words of Lester, “Industrial relations 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.
Concept of Industrial Relations
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 explain the relationship between employees and management which
stems directly or indirectly from union-employer relationship.

2. Industrial relations are the relationships between employees and employers within
the organizational settings. The field of industrial relations looks at the
relationship between management and workers, particularly groups of workers
represented by a union. Industrial relations are basically the interactions between
employers, employees and the government, and the institutions and associations
through which such interactions are mediated.
The term industrial relations have a broad as well as narrow outlook. Originally,
industrial relations were broadly defined to include the relationships and
interactions between employers and employees. From this perspective, industrial
relations cover all aspects of the employment relationship, including human
resource management, employee relations, and union-management (or labor)
relations. Now its meaning has become more specific and restricted. Accordingly,
industrial relations pertains to the study and practice of collective bargaining,
trade unionism, and labour-management relations, while human resource
management is a separate, largely distinct field that deals with non-union
employment relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and
their employer and the relationships between employees. The relationships
employers and workers have with the organizations are formed to promote their
respective interests, and the relations between those organizations, at all levels.
Industrial relations also includes the processes through which these relationships
are expressed (such as, collective bargaining, workers‟ participation in decision-
making, and grievance and dispute settlement), and the management of conflict
between employers, workers and trade unions, when it arises.
Need of Industrial Relation has arisen to defend the interest of workers for
adjusting the reasonable salary or wages. It also helps the workers to seek perfect
working condition for producing maximum output. Workers/employees are
concerned with social security measures through this. Industrial Relations is also
needed for achieving the democracy by allowing worker to take part in
management, which helps to protect human rights of individual.

3. Salaries in India are much more attractive in Indian subcontinent. As India is having
flourishing economy, the job opportunities are emerging and there is huge scope of
expansion. The salary pattern of India is also growing. Even, the seventh pay
commission is also spreading the way to coming soon. The Salaries of private sector
is also in the upswing mode with the increase of 11% annually.
Although, Inflation is one of the major factor which nullify the increase in the
salary. But still, the inflation is lower than the increase in the salary. So, this can
be seen as increase in the salary.
The National Commission on Labour (NCL) also emphasize on the same concept.
According to NCL, industrial relations affect not merely the interests of the two
participants- labour and management, but also the economic and social goals to
which the State addresses itself. To regulate these relations in socially desirable
channels is a function, which the State is in the best position to perform In fact;
industrial relation encompasses all such factors that influence behaviour of people
at work.
Industrial Relations (IR) is the study of the laws, conventions and institutions that
regulate 'the workplace'. It is a fundamentally important aspect of our way of life,
our culture and our society.
Industrial relations mean different things to different people. The following
illustration depicts how IR shapes our working life, our society and the national
economy.

4. What are industrial relations from a Worker's Perspective?
As workers, we associate Industrial Relations with Unions, Industrial Awards, and
labour laws that set the conditions under which we work. This includes our pay,
safety, employment security and opportunities for training. 150 years ago people
worked 6 days a week, 12 hours a day or more and there were no provisions for
sick pay or holiday pay. There was no protection for children who were often a
form of cheap labour, or worse, were sold into slavery. As a society we have come
a long way since, and this is largely due to the formation and actions of labour
unions.
What are industrial relations from an Employer's Perspective?
The modern day employer attaches great importance to maintaining good
industrial relations as a cornerstone of business growth and success. Industrial
relations, for the employer, is about negotiations between workers and business
owners/managers that lead to increased productivity and improved product quality
in exchange for better pay and conditions of employment for workers. These
negotiations between business owners/managers and their workers is often
referred to as enterprise bargaining. The reduction of conflict between workers
and business management is also a highly desirable objective in Industrial
Relations.
What are industrial relations from a Society Perspective?
Whether we have good jobs and how we work has a fundamental effect on the
quality of our lives. Unemployment causes social isolation and economic
deprivation. When there are high levels of unemployment, there is social tension
and upheaval. Too much employment has its own set of woes. People who work
long hours often suffers from health issues and family problems there is a need to
strike a work-life balance to ensure healthy, happy and productive populations
What are industrial relations from a Government Perspective?
Industrial relations are a major factor in managing the economy. If the workforce
is inefficient and wage demands are too high, then the cost of our goods and
services is greater and consequently we are less competitive in the global
marketplace (see more about Globalisation). Governments create laws and policies
that affect Industrial Relations and thereby influence the pay and conditions of
work for workers

5. Thus, IR can now safely be defined as a coin having two faces: co- operation and
conflict. This relationship undergoes change from thesis to antithesis and then to
synthesis. Thus, the relationship starting with co-operation soon changes into
conflict and after its resolution again changes into cooperation. This changing
process becomes a continuous feature in industrial system and makes IR concept as
dynamic and evolving one.
Scope of IR:
Based on above definitions of IR, the scope of IR can easily been delineated as
follows:
1. Labour relations, i.e., relations between labour union and management.
2. Employer-employee relations i.e. relations between management and
employees.
3. The role of various parties‟ viz., employers, employees, and state in maintaining
industrial relations.
4. The mechanism of handling conflicts between employers and employees, in case
conflicts arise.
The main aspects of industrial relations can be identified as follows:
1. Promotion and development of healthy labour — management relations.
2. Maintenance of industrial peace and avoidance of industrial strife.
3. Development and growth of industrial democracy.

6. Objectives of IR:
The primary objective of industrial relations is to maintain and develop good and
healthy relations between employees and employers or operatives and
management. The same is sub- divided into other objectives.
Thus, the objectives of IR are designed to:
1. Establish and foster sound relationship between workers and management by
safeguarding their interests.
2. Avoid industrial conflicts and strikes by developing mutuality among the
interests of concerned parties.
3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the
economic status of workers.
4. Provide an opportunity to the workers to participate in management and
decision making process.
5. Raise productivity in the organisation to curb the employee turnover and
absenteeism.
6. Avoid unnecessary interference of the government, as far as possible and
practicable, in the matters of relationship between workers and management.
7. Establish and nurse industrial democracy based on labour partnership in the
sharing of profits and of managerial decisions.

7. 8. Socialise industrial activity by involving the government participation as an
employer.
Industrial relations in a country are influenced, to a large extent, by the form of
the political government it has. Therefore, the objectives of industrial relations
are likely to change with change in the political government across the countries.
Healthy HR Practice can do
1. Improvement of economic conditions of workers.
2. State control over industrial undertakings with a view to regulating production
and promoting harmonious industrial relations.
3. Socialisation and rationalisation of industries by making the state itself a major
employer.
4. Vesting of a proprietary interest of the workers in the industries in which they
are employed.
The dynamics of relationship transactions within an industrial context is called
Industrial relations. These are primarily collective behavioural transaction of a
peculiar type as these occur in the environment of industrial, technological,
economic and social context. As we know too well, behaviour is a function of
personality and environment. This is true an individual as also at collective level. It
is the industrial context that lends the special colour to relationships in industry.
At another plane, we see IR as representative relations between the two main
interest groups in industry. These relations concern fundamentally the economic
interests but also encompass mutual "right and obligations" between parties.

8. These relationships are transactional in nature and ideally operate on the basis of
"give and take". These are the heart and soul of the collective bargaining process
in industry.
Often these are described also as Union-Management Relations. They operate
within parameters of related law, existing practice and bargaining strengths of
each party, but contain largely "issues of interests" to parties rather than the
"issues of rights"!
The above article is worth sharing for academic purpose, but in real world
industrial relations has multiple dimensions. Militant unions, Union Mafias, Over
protection of corrupt workforce, Suppression of management this happens in
public sector where management is not professional and no functional autonomy
exist to deal with Union malfunctions. Monopoly union experience dangerous to
employees they do not conduct elections and who so ever challenge he
office bearers they use colourable exercise to harass those rival employees in
connivance with the management who yield to pressure in the name of promoting
congenial industrial relations they also become party to the intra and inter union
rivalry.
If we study the history of India, probably worst period was between 1960 and 1980
when corruption was ruling the country.....be it politics, private and government
and Unions were no exception to this.
I had been for the past one year closely watching the work culture in
manufacturing, service sector and in BPOs and ITs.
Work culture in manufacturing sectors has improved a lot and both managements
and employees show tremendous amount of maturity in dealing with situations and
issues. New methods, shifting, closure, disciplinary actions are much smoother
today as these industries have learned over a period of one century.
More akin to manufacturing Sectors is the Call centres and some BPOs were more
monotonous repetitive work need to be performed and this cannot be
compensated by money alone. Continuous night shifts, pressure of work,
indiscriminate sacking, all will lead to dissatisfaction and some form of unionism is
expected soon if the professionals do not wake up and advise the
concerned management's correctly.
Thanking You
Regards
Hitesh Kumar Joshi
9824214757