The document outlines the concept of industrial relations, emphasizing its significance in maintaining healthy relationships between employers and employees, alongside the various approaches to understanding these dynamics. It discusses the roles of different parties involved, such as workers' organizations, employers, and the government, as well as objectives like conflict avoidance and improving worker conditions. Additionally, the International Labour Organization (ILO) is introduced as a key entity promoting labor rights and social justice globally.

1. Learning Outcomes
After attending this session you are able to understand:
 Understand the concept of Industrial Relation
 Why Industrial Relations are important and Objectives in an industry.
 Different Approaches for Industrial relation
 How International Labor organization helps in maintain the IR
 Concept of Industrial Peace111

2. Unit-1 Industrial
Relation
Presented By : Archana Chaurasia
Jiwaji University, SOS management

3. Meaning & Concept
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 relationships which arise at and out of the workplace generally include
the relationships between individual workers, the relationships between
workers and their employer, the relationships between employers, the
relationships employers and workers have with the organizations formed to
promote their respective interests, and the relations between those
organizations, at all levels.

4. Continued….
 The term industrial relations has a broad as well as a narrow outlook.
Originally, industrial relations was broadly defined to include the
relationships and interactions between employers and employees.
 The relationships which arise at and out of the workplace generally
include the relationships between individual workers, the
relationships between workers and their employer, the relationships
between employers,
 the relationships employers and workers have with the organizations
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.

5. Definitions
 The Industrial Relation relations also called as
labor - management, employee employers
relations. Employer-employee relationships that
are covered specifically under collective
bargaining and industrial relation laws.
 “Concerned with the systems, rules and
procedures used by unions & employers to
determine the reward for effort & other
conditions of employment.”

6. According to Bethal and associates assert : Industrial relation is that
part of management which is concerned with the manpower of the
enterprise. Manpower can be management and workers.
According to Tead and Netcalfe : Industrial relation is the composite
result of the attitudes and approaches of employers and employees
towards each other with regard to planning, supervision, direction and
coordination of the activities of an organisation with a minimum of
human efforts and frictions with an animating spirit of cooperation and
with proper regard for the genuine well being of all members of the
organisation. Industrial relation is the mutual relationship between all
the employer and employees of the organisation.
According to J. Hanry Richardson : IR is an art, the art of living together
for purpose of production. The parties while working together learn this
art by acquiring the skills of adjustment.
The workers as a group form Trade Unions, the employers form their own
associations, and the State provides institutions for the regulation of
relations.

7. 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.

8. Continued…
 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.
 8. Socialise industrial activity by involving the government
participation as an employer.

9. Objectives of Industrial Relation
 Accordingly, Kirkaldy has identified four objectives
of industrial relations as listed below:
 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.

10. Continued…..
 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,.
 To raise productivity to a higher level in an aera of full employment
by lessening the tendency to high turnover and frequency
absenteeism.
 To improve the economic conditions of workers in the existing state of
industrial managements and political government
 To Protect management and labor interests by securing

11. Continued…
 mutual relations between the two groups.
 To Avoid disputes between management and labor, and create a
harmonizing relationship between the groups so productivity can be
increased.
 Ensure full employment and reduce absenteeism, hence, increasing
productivity and profits.
 To Provide better wages and living conditions to labor, so
misunderstandings between management and labor are reduced to a
minimum.
 To bring about government control over plants where losses are
running high, or where products are produced in the public interest.

12. Parties to Industrial Relation
 Industrial relations are the outcome of employment relationships in industry i.e between
employers and labours. The Govt. or State influences these relations to a great extent.
 1. Workers and their Organisations : The personal characteristics of workers, their culture,
educational attainments, qualifications, skills, attitude towards work etc. play an important
role in IR. Workers organisations known as Trade Unions, are political institutions . Trade
unions are formed for safeguarding the economic and social interests of the workers. They
put pressure on the management for the achievement of these objectives.
 2. Employers and their Organisations : The employers provide employment to workers and
try to regulate their behaviour for getting high productivity from them. Industrial unrest
generally arise when the employers demands from the workers are very high and they offer
low economic and other benefits to the workers. In order to increase their bargaining power,
employers in several industries have organised employers associations. These associations put
pressure on the trade unions and the govt.
 3. Government : The govt. or state exerts an important influence on IR through such
measures as providing employment, intervening in working relationships and regulating
wages, bonus and working conditions through various laws relating to labour. The govt. keeps
an eye on both the trade union and employers organisations to regulate their behaviour in the
interest of the nation.

13. Approaches to Industrial Relation
 Everything you need to know about the approaches to industrial
relations. Industrial relations refer to the collective relationship between
management, employees and government in any organization. It deals with
the people at work.
 Approaches to Industrial Relations is a comprehensive field of study, subtle as
well as gross, a vast area of interactions, actions and reactions which affect
not just a company or an industry, but also the economy.
 Industrial relations can be described as the relationship between
management and employees or among employees and their organizations
that characterize or grow out of employment.

14. Approach # 1. Unitary:
 The basic assumption in unitary approach is that everyone benefits
when the focus is on common interest and promotion of harmony. IR is
grounded on mutual cooperation, individual treatment of employees,
teamwork, and shared goals. Workplace conflict is seen as a
temporary aberration resulting from poor management of employees,
or the mismatch between employees and organizational culture.
 This approach appears to be good in its orientation as it emphasizes
employees in the organization. However, it has failed to consider
different variables affecting IR within individual organizations and the
total industrial sector. Various such approaches like paternalistic and
philanthropic have failed because of the wrong assumptions made
about the work behaviour of employees. This approach has been
criticized on the basis that it is manipulative and exploitative.


15. Approach # 2. Systems:
 The systems approach of IR was developed by John Dunlop in 1958. He
has presented a systematic theoretical orientation to the study of
industrial relations. Before him, others have theorized industrial
relations in terms of trade union purpose and collective bargaining but
Dunlop has taken it in more comprehensive way. Therefore, he is
regarded as father of industrial relations.
 According to Dunlop, industrial relations system is a distinctive
subsystem of society on the same logical plane as an economic
system. Like the economic system, it is an abstraction. There are no
actors whose activity is confined solely to the industrial relations or
economic sphere.


16. Approach # 3. Pluralistic:
 The basic emphasis of pluralistic approach is that an organization is a
coalition of interested groups headed by the top management which
serves the long-term needs of the organization as a whole by paying due
concern to all the interest groups affected — employees, shareholders,
consumers, and society.
 In this process, there is possibility that the management may pay
insufficient heed to the needs and claims of employees, and they may
unite to bring collaborative force for the acceptance of these needs and
claims. Thus, the stability in IR system is the product of concessions
and compromises between management and unions.
 The pluralistic approach assumes that labour and management have
many conflicting interests, but such conflicts are not only natural but
even necessary because it is only competing social forces which can
constrain and check the exercise of absolute power. The role of State is
quite limited in IR system and should not have excessive influence on
any party to IR.


17. Approach # 4. Marxist:
 Like pluralistic approach, marxist approach also treats that labour and
management conflict is inevitable. However, this approach differs from
the earlier one so far as the cause of conflict is concerned; it ascribes
that the conflict is the product of the capitalist society which is based on
classes.
 The two classes — labour and capital — have essentially different
interests in an organization, and these interests are conflicting. The
objective of capital has been to enhance productivity by gaining control
over the labour process. The wages of the labour are seen as a cost and,
therefore, makes attempt to minimize it. Labour, being a factor of
production, should be hired so long as it can generate profit.


18. Socialistic Approach:
 Socialistic approach considers workers’ participation in management as
an important factor in the development and perfection of socialistic
democracy. This ensures fullest decentralization and participation in
management as multi-dimensional program for socialist construction.
The economic reconstruction is based upon the nationalization of the
means of production and exchange.
 Under Communism, state machinery is abolished and the functions of
the State are taken away by the society through public organization
based on mutual consent and co-operation and the compulsion element
in relation to members of the society is removed. In the process of
taking away powers from the state and delegating its functions to the
society, workers’ participation in management is of great importance.

19.  Gandhian Approach:
 Gandhi believed that all money and property originally belongs to
society and those who are possessing it are only the trustees of the
society whose duty is to increase the earning and value of the trust
property. He should charge only that much from the trust property as is
absolutely essential for his subsistence and honorable living. Excess of
one’s income over and above one’s is a social surplus to be employed for
the benefit of the society. Breach of trust is a crime and is punishable
under law.
 Under the trusteeship theory of Gandhi certain limited property rights
are admissible. The Trusteeship theory of Gandhi does not recognize
the inherent, unrestricted, irresponsible and absolute right of private
property.
 In accordance with Gandhi’s theory of trusteeship, there must be parity
between the remuneration of the trustees and the workers and should
normally not be more than the latter. The managerial skills of the
trustees, the talents and expertise of labor were neither to be exploited
nor used to sub-serve vested interests of the law.

20.  Psychological Approach to Industrial Relations:
 The psychologists are of the view that the problems of industrial
relations are deeply rooted in the perception and the attitude of local
participants. The influence of individual’s perception on his behaviour
has been studied by Mason Harie. He studied the behaviour of two
different groups, namely, “Union leaders” and the “Executives”
through a test.
 For the test, a photograph of an ordinary middle-aged person served
as input, which both the groups were expected to rate.
 It is interesting to note that both the groups rated the photograph in
different manner, i.e., the Union leaders referred the person in the
photograph as “Manager” where the group of “Executives” saw “Union
leader” in the photograph.


21.  Human Relations Approach to Industrial Relations:
 Among all the areas of management, perhaps one of the most delicate
and tricky ones 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 etc.
 These characteristics make them complex individuals and when they
interact with others, either individually or in groups, their complexity
further multiplies. So when such resources are not properly managed,
the problem of industrial relations surfaces which can be only managed
by deciphering and managing the dynamics of human behaviour both at
the individual and group level.

22. Approach of Dr. V. V. Giri to Industrial Relations:
 V. V. Giri has laid stress on collective bargaining and mutual
negotiations between employers and employees for the settlement of
disputes. His emphasis is on “voluntary efforts of the management and
the trade unions to wind up their differences through voluntary
arbitration rather than through compulsory arbitration.”
 He observed, “There should be a bipartite machinery in every industry
and every unit of the industry to settle differences from time to time
with the active encouragement of government. Outside interference
should not encroach upon industrial peace.”

23.  Dunlop’s Approach:
 John T.Dunlop in his book on ‘Industrial Relations System (1958)’
presented an analytical framework of industrial relations. The purpose
of his presentation was to provide tools of analysis to interpret and to
gain understanding of the widest possible range of industrial facts and
practices. He presented industrial relations system and contextual
factors.
 Actors of industrial relations include workers at all levels of an
enterprise and their associations specialized government and private
agencies and employers and their associations. The rules include the
regulations and laws that govern the relationship among the three
actors. The ideology is a Philosophy or a systematized body of beliefs
and sentiments held by the actors.

24. ILO: International Labour Organization
 The International Labor Organization (ILO) is devoted to promoting
social justice and internationally recognized human and labour rights,
pursuing its founding mission that labour peace is essential to
prosperity. Today, the ILO helps advance the creation of decent work
and the economic and working conditions that give working people
and business people a stake in lasting peace, prosperity and progress.
 The ILO was created in 1919, as part of the Treaty of Versailles that
ended World War I, to reflect the belief that universal and lasting
peace can be accomplished only if it’s based on social justice. In
1946, the ILO became a specialized agency of the United Nations.Its
unique tripartite structure gives an equal voice to workers, employers
and governments providing a unique platform for promoting decent
work for all women and men.


25. International labour organisation
Definition:
The International Labour Organization is the UN specialized agency which
seeks the promotion of social justice and internationally recognized
human and labour rights.
The ILO formulates international labour standards in the form of
Conventions and Recommendations setting minimum standards of basic
labour rights: freedom of association, the right to organize, collective
bargaining, abolition of forced labour, equality of opportunity and
treatment, and other standards regulating conditions across the entire
spectrum of work related issues.

26.  It provides technical assistance primarily in the fields of:
• vocational training and vocational rehabilitation;
• employment policy;
• labour administration;
• labour law and industrial relations;
• working conditions;
• management development;
• cooperatives;
• social security;
• labour statistics and occupational safety and health.
It promotes the development of independent employers' and workers'
organizations and provides training and advisory services to those
organizations. Within the UN system, the ILO has a unique tripartite
structure with workers and employers participating as equal partners
with governments in the work of its governing organs.

27. OBJECTIVES OF ILO
 Four strategic objectives at the heart of the Decent
Work agenda
• Set and promote standards and fundamental principles and rights at
work
• Create greater opportunities for women and men to decent
employment and income
• Enhance the coverage and effectiveness of social protection for all
• Strengthen tripartism and social dialogue

28. ILO Structure
• India is a founder member of the International Labour Organization,
which came into existence in 1919. At present the ILO has 187
Members. A unique feature of the ILO is its tripartite character. The
membership of the ILO ensures the growth of tripartite system in the
Member countries. At every level in the Organization, Governments
are associated with the two other social partners, namely the workers
and employers. All the three groups are represented on almost all the
deliberative organs of the ILO and share responsibility in conducting
its work. The three organs of the ILO are:
International Labour Conferences: - General Assembly of the ILO –
Meets every year in the month of June.
• Governing Body: - Executive Council of the ILO. Meets three times in
a year in the months of March, June and November.
• International Labour Office: - A permanent secretariat.

29.  INTERNATIONAL LABOUR CONFERENCE
Except for the interruption caused by the Second World War, the
International Labour Conference (ILC) has continued, since its first
session in 1919 to meet at least once a year. The Conference, assisted by
the Governing Body, adopts biennial programme and budget, adopts
International Labour Standards in the form of Conventions and
Recommendations and provides a forum for discussing social, economic
and labour related issues. India has regularly and actively participated in
the Conference through its tripartite delegations.
 GOVERNING BODY
 The Governing Body of the ILO is the executive wing of the Organization.
It is also tripartite in character. Since 1922 India has been holding a non-
elective seat on the Governing Body as one of the 10 countries of chief
industrial importance. Indian employers and workers’ representatives
have been elected as Members of the Governing Body from time to time.

30.  THE INTERNATIONAL LABOUR OFFICE
The International Labour Office, Geneva provides the Secretariat for all
Conferences and other meetings and is responsible for the day-to-day
implementation of decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the International Labour Office.
 INTERNATIONAL LABOUR STANDARDS - ILO CONVENTIONS
The principal means of action in the ILO is the setting up the International
Labour Standards in the form of Conventions and Recommendations. Conventions
are international treaties and are instruments, which create legally binding
obligations on the countries that ratify them. Recommendations are non-binding
and set out guidelines orienting national policies and actions.

31. Role Of International Labour
Organization
 Its activities are directed by the Director-General and the ILO’s Governing
Body, which includes representatives from member states, workers’ and
employers’ groups.
 Decent Work Agenda
 As part of its mission, the ILO aims to achieve decent work for all by
promoting social dialogue, social protection and employment creation, as
well as respect for international labour standards. The ILO provides technical
support to more than 100 countries to help achieve these aims, with the
support of development partners.
 International labour standards
 The ILO sets international labour standards with Conventions, which are
ratified by member states, or Recommendations, which are non-binding.

32.  ILO Declaration on Fundamental Principles and Rights at Work
 Adopted in 1998, the Declaration commits member states to respect
and promote eight fundamental principles and rights in four
categories, whether or not they have ratified the relevant
Conventions.
 They are:
• freedom of association and the right to collective bargaining
(Conventions 87 and 98)
• the elimination of forced or compulsory labour (No. 29 and No. 105)
• the abolition of child labour (Conventions No. 138 and No. 182)
• the elimination of discrimination in respect of employment and
occupation (Conventions No. 100 and No. 111)

33.  Trade unions at the ILO
Worker group representation is drawn from national trade union confederations, so trade unions
play a crucial role in developing policy at the ILO. The Bureau for Workers' Activities (ACTRAV) at
the secretariat is dedicated to strengthening independent and democratic trade unions so they can
better defend workers’ rights and interests.
 The ILO’s supervisory role
The ILO monitors the implementation of ILO Conventions ratified by member states. This is done
through:
The Committee of Experts on the Application of Conventions and Recommendations
The International Labour Conference’s Tripartite Committee on the Application of Conventions and
Recommendations
Member states are also required to send reports on the progress of the implementation of the
Conventions they have ratified.
 Complaints
 Complaints can be filed against member states for not complying with ILO Conventions they have
ratified. Complaints can be from another member state which has signed the same Convention, a
delegate to the International Labour Conference or the ILO’s own Governing Body.
 Trade unions use the complaint procedure and the International Labour Conference to bring
attention to labour and workers’ rights violations in member states.

34. The benefits/contribution of International
Labour Standards
 A path to full and productive employment and decent work for all:
The 2030 goals
 the international community recognized that “labour is not a
commodity”. Labour is not an inanimate product, like an apple or a
television set, that can be negotiated for the highest profit or the
lowest price. Work is part of everyone’s daily life and is crucial to a
person’s dignity, well-being and development as a human being.
Economic development should include the creation of jobs and
working conditions in which people can work in freedom, safety and
dignity.

35.  An international legal framework for fair and stable globalization
 Achieving the goal of decent work in the globalized economy requires
action at the international level. The world community is responding
to this challenge in part by developing international legal instruments
on trade, finance, the environment, human rights and labour. The ILO
contributes to this legal framework by elaborating and promoting
international labour standards aimed at making sure that economic
growth and development go hand-in-hand with the creation of decent
work.
 A level playing field
An international legal framework on social standards ensures a level
playing field in the global economy. It helps governments and
employers to avoid the temptation of lowering labour standards in
the hope that this could give them a greater comparative
advantage in inter- national trade.

36.  A means of improving economic performance
International labour standards have been sometimes perceived as
being costly and therefore hindering economic development.
However, a growing body of research has indicated that compliance
with international labour standards is often accompanied by
improvements in productivity and economic performance.
 A safety net in times of economic crisis
Even fast-growing economies with high-skilled workers can
experience unforeseen economic downturns. The Asian financial
crisis of 1997, the 2000 dot-com bubble burst and the 2008 financial
and economic crisis showed how decades of economic growth can
be undone by dramatic currency devaluations or falling market
prices.

37.  A strategy for reducing poverty
 Economic development has always depended on the acceptance of
rules. Legislation and functioning legal institutions ensure property
rights, the enforcement of contracts, respect for procedure and
protection from crime – all legal elements of good governance without
which no economy can operate. A market governed by a fair set of
rules and institutions is more efficient and brings benefit to everyone.
 The sum of international experience and knowledge
International labour standards are the result of discussions among
governments, employers and workers, in consultation with experts
from around the world. They represent the international consensus
on how a particular labour problem could be addressed at the global
level and reflect knowledge and experience from all corners of the
world.

38. Industrial Peace
 A state in industrial relations in which
both employer and employees abstain from industrial action, such
as strikes and lockouts.
 Human relations components include negotiation, emotional
intelligence, multitasking, and communication, while measures for
industrial peace and harmony include better workplace, trust and
confidence, employee activities and royalty, and increased
motivation.
Industrial peace presupposes the absence of any type of industrial
strife. Permanent industrial peace and harmony in any plant and unit
is a must for increased production and healthy relationship between
the workers and the employers. Such peace is established by the
following mechanisms:

39.  (a) Machinery for the prevention and settlement of industrial
disputes in the form of : (i) legislative and administrative
enactment—like that of the Trade Unions Act, the Industrial Disputes
Act, the Industrial Employment (Standing Orders) Act ; (ii) Works
Committees and Joint Management Councils ; (iii) Conciliation
Officers and Boards of Conciliation ; (iv) Labour Courts, Industrial
Tribunals, National Tribunals, Courts of Enquiry ; (v) Provision for
voluntary arbitration.
 (b) Provision of bipartite and tripartite forums for the settlement of
disputes. These forums act through Code of Discipline in Industry,
Code of Efficiency and Welfare, Model Standing Orders, Grievance
Procedure and granting of voluntary recognition to trade 'unions by
the employers.

40. Indicators of Industrial Peace And
Harmony
 1.Ensure a better workplace culture: The Culture of an organization is
what defines it. Employees and job seekers alike want to work for
companies that have a positive work culture. Trusting your colleagues,
rewarding employees for their efforts, and stepping out to support
employees in difficulty are all examples of good work culture.
 Improves the Trust Confidence: Fostering trust and confidence in the
workplace involves a lot of efforts on the part of both the employers and
employees. Its reasonable to compare it to a puzzle, with solid employee
relations as the most important piece.
 Positive employees interactions plant the roots of workplace trust and
confidence. As a result, the majority of companies employ an employee
relations manager. These executives are in charge of keeping the
company’s employees relations activities on track.

41.  Heightened Employee’s Loyalty: Employees are more likely to
abandon their employers than their employment.
 If they believe the work culture is unfavorable, most people are not
afraid to change jobs. When companies fail to stand up for stronger
ties with their employees, this is the most prevalent result.
 Ignoring opportunities to improve employee relation costs employer
not just money, but its also damage their brand image, preventing
new talent from entering the workforce.
 Increased Motivation : Employees that have good working
relationships are more inclined to give it their all and put in extra
effort. Maintaining healthy relationships with your employees includes
more than just effective communication: it also entails recognizing
and acknowledging their contributions at work . Employees like it
when their superiors compliment them because it enhances their
motivation. Employees who are motivated become excellent team
members.
 Employees who are more motivated are less likely to experience
burnout.