IR Chapter1

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CHAPTER-1INTRODUCTION TO

INDUSTRIAL RELATION


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INDUSTRIAL RELATION

INDUSTRY:" Any productive activity in which anindividual (or a group of individuals) is (are)engaged.

RELATION:The relationships that exist within the

industry between the employer and his workmen.


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Demand of Industrial Relations:

In medieval society- direct relations between master& servant to secure cooperation.But situation underwent a change with the

emergence of factory system after the Industrialrevolution in England.Industrial Revolution changed radically thetechniques of production and resulted in investmentof huge amount of capital in technology,companyform of organisation gain popularity, seperation ofownership and management of industry.


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Demand of Industrial Relations:

All the factors lead to labour unrest and conflictand therefore cooperation between the labour andemployers has been emphasized (means Industrialrelation come in to existence at that time).


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Industrial Relations

Th e term industrial relations refers torelations h ips between management and

labour or among employees and t h eir organisations t h at c h aracterise or growout of employment. Th ere are two parties

in employment relations h ip-labour &management. Bot h parties need to work ina spirit of cooperation, adjustment &

accommodation


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Industrial Relations

Industrial relations includes individual,individual relations and joint consultation

between employers and workpeople at t h eworkplace; collective relations betweenemployers and t h eir organisations and

trade unions and t h e part played by t h estate in regulating t h ese relations.


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Concept of industrial relations

IR is an art ,the art of living together for the purpose ofProduction(J.Henry)

Or

The field of IR includes the study of workers and their tradeunions management employers associations and the stateinstitutions concerned with the regulation of employment(H.A. Clegg)

OrIt is the relation between employers and employees inindustry. in the broad sense the term also includes therelation between the various unions ,between the states andthe unions as well as those between the employers and thestate (Casselmans labour dictionary)


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Characteristics of IR8

1. An outcome of relationship in industry.2. It create rules and regulations to maintain piece

and harmony.3. Important parts of IR are employees and their

organization, employer and their association andgovernment.

4. It has a role of management, union andgovernment.


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Objective of IR9

1. To safeguard the interest of labor and managementand promote & develop their relations.

2. To regulate the production by minimizing industrialconflicts, absenteeism and high turnover.

3. To provide opportunity to workers to involve indecision making process with management.

4. To encourage and develop trade unions in order toimprove the workers' strength.


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Objective of IR

5. To establish and promote the growth of an industrialdemocracy based on labor partnership in sharing inprofits & decision making.

6. To minimise the no. of strikes, lockouts and gheraos byproviding resonable wages,improved living andworking conditions.

7.To improve the economic conditions of workers in theexisting state of industrial management.


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Dominant Aspects of IR

A cc. to Douglas McGregor, t h ere are twoaspects:- Conflict and CooperationCooperation- Union-management cooperationwill be a function of two forces:- a) be h avioural

pattern of union and management, b) balancingof union rig h ts and management rig h ts

Conflict- Some degree of conflict is inevitableas it is essential to survival of bot h union andmanagement and is not always bad and certainconstructive aspects.


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Importance of IR

Industrial peaceHigher productivity

Industrial democracyCollective bargainingFair benefits to workersHigher morale of workersFacilitation of changes


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The Actors in Employee Relations Management

W orkers and their organizationThe managementThe Government


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Scope of IR

Promotion of healthy labour management relationsa) Responsible trade union and Association of

Employersb) Spirit of collective bargainingc) Labour welfare

Maintenance of industrial peacea) Machinery for the prevention and settlement of

industrial disputesb) Provision of bipartite and tripartite forums


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Scope of IR

Promotion of industrial democracya) Establishment of the joint management councils at

the plant levelsb) Recognition of human right in industryc) Increase in productivity


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Approaches To Industrial Relations

Classical approachHuman relation approach

Pluralistic approachSocial action approachSystem approachGandhian Trusteeship approach


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Factors Affecting IR

Institutional factors

Economic factors

Social factors

Technological factorsPsychological factors

Enterprise-related factors

Globalization


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Trade unionConcept and Nature

Definitions: A trade union is continuous association of wage earners for the purpose of maintaining or improving the

conditions of their working lives. ( W ebb)

Or

A labour union or trade union is an organization of workers formed to promote, protect, and improve ,through collective action ,the social ,economic, and political interest of its members.

Sec. 2(h) Trade union Act,1926 defined union as any combination, whether temporary or permanent,formed primarily for the purpose of regulating the relations between the workmen andemployers, or between workmen and workmen, or between employers and employers, or forimposing restrictive conditions on the conduct of any trade or business and includes any federationof two or more trade unions.

Nature of Trade union :

a) It is an organization

b) It is an Permanent body

c) It is formed for common interest of labour

d) It is a group efforts


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Trade unionObjectives

Steady employment

Rationalization of personnel policies

Voice in decision affecting workers

Recognition and participation

Gaining legislative enactment

Miscellaneous services


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Role of Trade Unions in IR20

1. Achieving higher wages2. To offer responsive co-operation in improving level

of production, discipline etc.3. To promote individual and collective welfare4. To improve working and living conditions5. To enlarge the opportunities of promotion and

training.


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Trade unionsFunctions of Trade Unions

Militant functions

Faternal functions

Political functions


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Motive of Joining TU

Economic BenefitsPlatform for self ExpressionCheck on arbitary actions of managementSecurityEmployer-Employee RelationSense of ParticipationSense of BelongingnessBackground factors


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Methods of TU

Mutual InsuranceCollective BargainingLegal EnactmentDirect Action


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Trade UnionTypes of trade union(a) According to purpose

I. Reformist union

II. Revolutionary

(b ) According to mem b ership structure

I. Crafts union

II. Industrial union

III. General union


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Trade UnionProblem of trade union in India

Uneven growthLow membershipOutside leadershipMultiplicity of unionsInter-union rivalryAbsence of paid office bearersW eak financial positionSubscription dues unpaid


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Emerging challenges in IR

Revolution in information technologyAdvancement of technologyAdoption of new technologyEconomic changesChanges in economical policyChanging international environment

Increased no. of mergers and acquisitionChanging needs of customers


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Reasons for challenges

GlobalizationImpact :1. Integration of economies2. Global benchmarking3. Changes in management style4. Increase in inequities


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Change in workforce profile:Impact :1. Increase in education level2. Change in skill level3. Knowledge worker4. Age group and aspirations of the workers


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Technological advancement:1. Obsolete jobs2. Increased Training needs3. Involvement of employees for technological

changes


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Changes in politico-legal environment :1. Role of government2. Role of non-government organisations


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Contemporary issues in IR

Low wagesEmployment of womenIgnorance and illiteracyChild laborIndustrial housingSocial security


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Trade UnionStructure of trade union in India

Local level FederationRegional level FederationsNational Federations

Example :1.The Indian national trade union congress2.AITUC

3.HMS4.UTUC

Documents

IR Chapter1