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EMPLOYMENT RELATIONS

MS-24

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Block 1



Lecture 1

Block 1

Unit 1Unit 2Unit 3



UNIT 1

CONCEPT, SCOPE AND APPROACHES TO INDUSTRIAL RELATIONS

Professor Clegg defines industrial relations in the broadest terms as encompassing the rules governing employment together with the ways in which the rules are made and changed and their interpretation and administration.



Concept, Scope and Approaches toIndustrial Relations

According to Kirkaldy, 5 industrial relations in a country are intimately connected with the form of its political government; and the objectives of an industrial organization may vary from purely economic to purely political ends. He divides the objectives of industrial relations into four categories:

i) improvement in the economic conditions of workers in the existing state of industrial management and political government;



• ii) control exercised by the state over industrial undertakings with a view to regulating production and promoting harmonious industrial relations;

• iii) socialization or rationalization of industries by making the state itself a major employer; and iv) vesting of a proprietary interest of the workers in the industries in which they are employed.



Components

of industrial relations

Participants Issues

Structure Boundaries

The components of industrial relations system



At least there are three marked features of the systems approach. They are:

• i) Inter-disciplinary Character: Some theorists regard the systems approach to be universally applicable to all human relationships, in small or large units. Its flexibility of application in the behavioral sciences has been aptly demonstrated.

Approaches to Industrial Relations



• ii) Suitability to Work Organization and their Sub-systems: The adaptability of the systems approach to organization is also a frequently discussed trait. This springs from the fact that organizations, and to some extent their sub-systems, are rational and purposeful.

• iii) Dynamic Aspects: A systems approach is oriented towards the study of interactions and changing relations.



Approaches to Industrial Relations



DUNLOP’S APPROACH

IDEOLOGY

TECHNICAL FACTORS

LOCUS AND DISTRIBUTION OF POWER IN WIDER SOCIETY

MARKET FACTORS

ACTORS RULES



THE OXFORD APPROACH :

• The “Oxford Approach” can be expressed in the form of an equation:

• r = f (b) or r = f (c)• where, r = the rules governing industrial relations• b = collective bargaining• c = conflict resolved through collective

bargaining.

ECONOMIC ENVIRONMENT AND BUSINESS MANAGEMENT



THE INDUSTRIAL SOCIOLOGY APPROACH

G. Margerison, an industrial sociologist, holds the view that the core of industrial relations is the nature and development of the conflict itself. Margerison argued that conflict is the basic concept that should form the basis of the study of industrial relations.



The critical elements of the sociological

environment of business. These elements are :• Social institutions and systems• Social values and attitudes• Education and culture• Role and responsibility of the Government• Social groups and movements• Socio-economic order• Social problems and prospects.



THE ACTION THEORY APPROACH : The action theory analysis of industrial relations focuses primarily on bargaining as a mechanism for the resolution of conflicts. Whereas the systems model of industrial relations constitutes a more or less comprehensive approach, it is hardly possible to speak of one uniform action theory concept.



THE MARXIST APPROACH:

The Marxist approach is primarily oriented towards the historical development of the power relationship between capital and labor. It is also characterized by the struggle of these classes to consolidate and strengthen their respective positions with a view to exerting greater influence on each other.



SOCIAL RESPONSIBILITIES OF BUSINESS

The critical elements of the socio-cultural environment are :Social institutions and systems, social values and attitudes, education and culture, social groups and movements, the socio-economic order, social problems and prospects, etc.



Social Movements

Social Movements

Trade Union Movement

Shareholders’ MovementManagement Movement

Consumer Movement



THE PLURALIST APPROACH :

Pluralism is a major theory in labour-management relations, which has many powerful advocates. The focus is on the resolution of conflict rather than its generation, or, in the words of the pluralist, on ‘the institutions of job regulation.’ Kerr is one of the important exponents of pluralism. According to him, the social environment is an important factor in industrial conflicts.



WEBER’S SOCIAL ACTION APPROACH

• The major orientations in the Weberian approach have been to analyze the impact of techno-economic and politico-organizational changes on trade union structure and processes, to analyze the subjective interpretation of workers’ approaches to trade unionism and finally to analyze the power of various components of the industrial relations environment – government, employers, trade unions and political parties.



• Thus the Weberian approach gives the theoretical and operational importance to “control” as well as to the power struggle to control work organizations – a power struggle in which all the actors in the industrial relations drama are caught up.



THE HUMAN RELATIONS APPROACH :

In the words of Keith Davies, human relations are “the integration of people into a work situation that motivates them to work together productively, cooperatively and with economic, psychological and social satisfactions.”



• According to Keith Davies, the goals of human relations are: (a) to get people to produce, (b) to cooperate through mutuality of interest, and (c) to gain satisfaction from their relationships.



THE GANDHIAN APPROACH :

• Gandhi ji can be called one of the greatest labor leaders of modern India. His approach to labor problems was completely new and refreshingly human. He held definite views regarding fixation and regulation of wages, organization and functions of trade unions, necessity and desirability of collective bargaining, use and abuse of strikes, labor indiscipline, workers participation in management, conditions of work.



HUMAN RESOURCE MANAGEMENTAPPROACH:• Human resource management (HRM) has become

increasingly used in the literature of personnel/industrial relations. The term has been applied to a diverse range of management strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable, term for personnel or industrial relations management. Some of the components of HRM are:

• (i) human resource organization;• (ii) human resource planning;



• (iii) human resource systems;• (iv) human resource development;• (v) human resource relationships;• (vi) human resource utilization;• (vii) human resource accounting;• (viii) human resource audit.• This approach emphasizes individualism and the

direct relationship between management and its employees.



UNIT 2

EVOLUTION OF INDUSTRIAL

RELATIONS AND CURRENT DEVELOPMENTS



INDUSTRIAL RELATIONS IN INDIA :• First Phase: During the first phase, the British

Government in India was largely interested in enforcing penalties for breach of contract and in regulating the conditions of world with a view to minimising the competitive advantages of indigenous employers against the British employers. A series of legislative measures were adopted during the latter half of the nineteenth century, which can be considered as the beginning of industrial relations in India



• Second Phase: The policy after the First World War related to improvement in the working condition and provision of social security benefits. During the two decades following the war, many laws were enacted for the implementation of the above policy. 'The Trade Disputes Act,1929 sought to provide a conciliation machinery to bring about peaceful settlement of disputes. The Royal Commission on Labor (1929-3 1) made a comprehensive survey of labor problems India, particularly the working conditions in the context of health, safety, and welfare of the workers and made certain recommendations of far-reaching consequences.



• Third Phase: After independence, an Industrial Truce Resolution adopted in 1947 at a tripartite conference. The conference emphasized need for respecting the mutuality of interests between labor and capital. It recommended to the parties the method of mutual discussion of all problems common to both, and settle all disputes without recourse to interruption in or slowing down of production.



GOVERNMENT'S ROLE • The main issue in regard to the government's role in

industrial relation 15 the degree of state intervention. The industrial relations policy of the government forms part of the broader labor policy. The tenets of this policy, as stated by the National Commission on Labor, are:

(i) primacy to the maintenance of industrial place; (ii) encouragement for mutual settlement of disputes

through collective bargaining and voluntary arbitration (iii) recognition of the workers' right to peaceful direct

action, i.e., strike; and(iv) tripartite consultation.



CURRENT DEVELOPMENTS :• The current developments in the field of industrial

relations are basically related to structural changes, acquisitions and mergers, globalizations, liberalizations, and technological changes.



Composition of World Trade

Mergers and Acquisitions• In merger, two or more existing companies go into

liquidation and a new company is formed to takeover their business. An acquisition arises when there is a purchase by one company of the whole or part of the shares, of the whole or the part of the assets, of another company in consideration for payment in cash or by issue of shares or other securities in the acquiring company or partly in one form and 11artly in the other, The process of merger is the result of agreement and contract between the transferor and transferee companies.



• Globalization can be conceptually explained as the process of economic or commercial integration of a company or a country with the rest of the world. The magnitude of such integration will determine the extent of globalization accomplished by the company or the country as the case may be. It is important to note that globalization is not an 'event' but a 'process.'



Privatization• Privatization is one of the major elements of

structural adjustment process taking place in different parts of the world. It involves complex social and labor issues. Apprehensions about privatization concern potential loss of present and future jobs. However, there is not enough evidence to suggest that privatization destroys jobs. The trade unions are concerned about privatization due to fears about job loss and potential adverse effects on the dynamics of trade unions and their rights



INDUSTRIAL RELATIONS SCENARIO

Observations about the industrial relations scenario in India:

• 1) It is increasingly noticed that trade unions do not normally give a call for strike because they are afraid that a strike may lead to the closure of the unit.

• 2) Service sector workers feel they become outsiders and are becoming increasingly disinterested in trade union activities.



• 3) There is a trend to resolve major disputes through negotiations at bipartite level. The nature of disputes demands is changing. Instead of demanding higher wages, allowances or facilities, trade unions now demand job security and some are even willing to accept wage cuts or wage freezes in return for job protection. Disputes relating to non-payment of wages or separation benefits are on the rise.

• 4) The attitude of the Government, especially of the Central Government, towards workers and employers seems to have undergone a change. Now, permissions for closure or retrenchment are more easily granted.



• 5) The conciliation machinery is more eager to consider problems of employers and today consider issues like increase in productivity, cost reduction, financial difficulties employer, competition, market fluctuations, etc. They are also not too serious in implementing the awards of labor courts awarded long back alter protracted litigation against employers wherein reinstatement or regularization of workers was required.

• 6 ) The industrial relations machinery is not pursuing seriously the recovery proceedings against employers who could not pay heavy dues of workers, if the financial position of the employer is very bad.

• 7) The labor adjudication machinery is more willing to entertain the concerns of industry.



UNIT 3

CONSTITUTIONAL AND LEGAL

FRAMEWORK OF INDUSTRIAL RELATIONS: CONVENTIONS, ID ACT,

TRADE UNION ACT



• Labor is in the concurrent list of the Constitution on which both the Centre as well as the States have the power to make laws. Article 254 has been enacted to clarify the position. Normally, as laid down in Clause (1), in case of any repugnancy between the Union and the State legislation.



• Article 39 accentuates the basic philosophy of idealistic socialism, which is enshrined in the Preamble of the Constitution. It provides a motivation force to the directive principles by laying down that the State shall direct its policy towards equal pay for both men and women.

• Article 41 lays down that the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.



• Article 42 enjoins the state government to make provision for securing just and humane conditions of work and for maternity relief.

• Article 43 makes it obligatory for the State to secure by suitable legislation or economic organization or in any other manner to all workers, agricultural, industrial, or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities.



• Article 43-A makes it obligatory on the State to take steps by suitable legislation or otherwise to secure the participation of workers in the management of undertakings and industrial establishments. A brief discussion regarding the extent to which these provisions had been adopted and enforced in our country will be in order.



THE IMPACT OF ILO ON INDUSTRIAL RELATIONS: The aims and objectives of ILO are set out in the Preamble to its Constitution and in the Declaration of Philadelphia (1944), which was formally annexed to the Constitution in 1946. The Preamble affirms that universal and lasting peace can be established only if it is based upon social justice.



• The ILO adopted a series of Conventions and Recommendations covering hours of work, employment of women, children and young persons, weekly rest, holidays, leave with wages, night work, industrial safety, health, hygiene, labour inspection, social security, labour-management relations, freedom of association, wages and wage fixation, productivity, and employment.



Economic Growth and DevelopmentROLE OF LAW IN INDUSTRIAL RELATIONS• The three central enactments which have a

bearing on industrial relations in our country are:• (a) the Trade Unions Act, 1926;• (b) the Industrial Employment (Standing Orders)

Act, 1946; and• (c) the Industrial Disputes Act, 1947.



THE TRADE UNIONS ACT 1926:• The Central Government, after consulting

Provincial Governments, drew up a Bill providing for the registration of trade unions, and introduced it in the Assembly on 31st August 1925. It was passed on 25th March 1926, and Indian Trade Unions Act, 1926 was brought into force on 1st June 1927. The Act extends to the whole country.

• It is divided into 33 Sections and contains 5 chapters. Certain acts do not apply to registered trade unions, namely:

• i) The Societies Registration Act, 1860;• ii) The Co-operative Societies Act, 1912; and• iii) The Companies Act, 1956.



• The main object of the Act is to provide for the registration of trade unions and to give registered trade unions a legal and corporate status, and immunity to their officers and members from civil and criminal liability for legitimate trade union activities.



• Every application for the registration of a trade union shall be made to the Registrar,

• and shall be accompanied by a copy of the rules of the trade union and a statement of

• the following particulars, namely:

• i) The names, occupations and addresses of the members making the application.

• ii) The names, occupations and addresses of the place of work of the members of the trade unions making the application.



Rules of a Trade Union• A trade union is entitled to registration only if its

executive is constituted in accordance with the provisions of the Act and its rules provide for the following matters:

• a) The name of the trade union;• b) The objects for which the trade union has been

established;• c) The purposes for which the general funds of the trade

union shall be employed;• d) The maintenance of a list of the members of the trade

union and adequate facilities for the inspection thereof by the office-bearers and members of the trade union;



Registrar of Trade Unions• The Registrar may call for information for the

purpose of satisfying himself that an• application complies with the above provisions or

that the trade union is entitled to• registration. He may refuse to register the trade

union until such information is• supplied.



Rights of Unions• Any registered trade union may, with the consent of

not less than two-thirds of the total number and subject to certain conditions, change its name. Any two or more registered trade unions may amalgamate with or without the dissolution or division of the funds of such trade unions, or either or any of them, provided that –

• i) The votes of at least half of the members of each or every such trade union

• entitled to vote are recorded; and• ii) At least 60 percent of the votes recorded are in

favour of the proposal.



THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946

The legislature passed the Act on 23rd April 1946.

The Act came into force on 1st April 1947.• The Act was enacted:• a) to bring about uniformity in terms and conditions of

employment;• b) to minimize industrial conflicts;



• c) to foster harmonious relations between employers and employees; and

• d) to provide statutory sanctity and importance to the standing orders;

• e) to provide for payment of subsistence allowance by the employer during



Acts of Misconduct• The following acts or omissions on the part of a

workman shall amount to misconduct:• i) wilful insubordination or disobedience, whether or

not in combination with another, of any lawful and reasonable order of a superior;

• ii) going on an illegal strike or abetting, inciting, instigating or acting in furtherance thereof;

• iii) wilful slowing downing in performance of work, or abatement or instigation thereof;



• iv) theft, fraud or dishonesty in connection with the employer’s business or property or the theft of property of another workman within the premises of the establishment;

• v) taking or giving bribes or any illegal gratification;• vi) habitual absence without leave, or absence

without leave for more than ten consecutive days or overstaying the sanctioned leave without sufficient grounds or proper or satisfactory explanation;



• vii) late attendance on less than four occasions within a month;

• viii) habitual breach of any standing order or any law applicable to the establishment or any rules made there under;

• ix) collection without the permission of the manager of any money within the premises of the establishment except as sanctioned by any law for the time being in force;

• x) engaging in trade within the premises of the establishment;



Offences and Penalties:

• The Act provides for penalties and procedures in

case where: (i) an employer fails to submit draft

standing orders; (ii) who does any act in contravention

of the standing orders finally certified under this Act

for his industrial establishment.



Obligations of Workmen• 1) Work in conformity with the certified standing

orders or model standing orders as the case may be.• 2) Comply with the provisions of the Act in regard to

modification and interpretation of standing orders.



THE INDUSTRIAL DISPUTES ACT 1947

Object of the Act

The Preamble to the Act reads: “An Act to make provision for the investigation and settlement of industrial disputes and for certain other purposes.” On the basis of various judgments given from time to time by the Supreme Court, the principal objectives of the Act may be stated as follows:

a) To ensure social justice to both employers and employees and advance the progress of industry by bringing about harmony and a cordial relationship between the parties.



• b) To settle disputes arising between capital and labor by peaceful methods and through the machinery of conciliation, arbitration and, if necessary, by approaching the tribunals constituted under the Act. If disputes are not settled, there would be strikes or lockouts which would entail dislocation of work, essential to the life of the community.



c) To promote measures for securing and preserving amity and good relations between the employer and workmen.

d) To prevent illegal strikes and lockouts.

e) To provide compensation to workmen in cases of lay-off, retrenchment and closure.



Appropriate Government: It means:• a) in relation to any industrial dispute concerning any

industry carried on by or under the authority of the Central Government or by a railway company, or any controlled industry as may be specified, or in relation to an industrial dispute concerning a banking or an insurance company, a mine, or an oil-field or a major port, the Central Government; and

• b) in relation to any other industrial dispute, the State Government.



• Award: It means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labor Court, Industrial Tribunal, or National Industrial Tribunal and includes an arbitration award made under Section 10-A.



• Authorities under the Act• Works Committee• Conciliation Officers • Board of Conciliation• Courts of Inquiry• Labor Courts• Industrial Tribunals• National Tribunals



The duties of conciliation officer are

1) He may hold conciliation proceedings where any industrial dispute exists or is apprehended. But he must hold such proceedings when the dispute relates to a public utility service and a strike notice has been given.

2) He must investigate the dispute and all matters affecting the merits and the right settlement thereof, and try to induce the parties to come to a fair and amicable settlement.



• 3) Where a settlement of the dispute or any of the matters therein is arrived at, he must send a report to the government, together with a memorandum of settlement signed by the parties.

• 4) Where no settlement is reached, he must send to the government a full report in regard to the steps taken by him to ascertain the facts and circumstances of the dispute and a full statement of the facts and circumstances and the reasons why a settlement could not be reached.

• 5) He must send the report of the settlement or non-settlement of the dispute, as the case may be, within 14 days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the Government.



Lecture 2

Unit 4

Unit 5

Unit 6

Unit 7

Unit 8



Block 2



UNIT 4

METHODS AND TECHNIQUES FOR

SUPPLY MANAGEMENT



• HR demand analysis provides the Manager with the means of estimating the number of kind of employees that will be required. The next logical step is to determine whether it will be able to procure the required number of personnel.



HUMAN RESOURCE INVENTORY

The stratification of the existing population can be done in several manners, some of which are as follows:

• Categorization by age. One can study average age, average distribution, minimum and maximum age etc., by job categories, functions, skills, qualifications etc.

• Segmentation of employees by functions, job groups, departments, skills, location etc.



• Categorization by gender i.e. male and female, ethnic groups, religion, language etc.

• Segmentation by performance levels.

• Segmentation by organizational hierarchy, i.e. staff, junior management, middle management, senior management, etc.

• Segmentation by salary groups.



• Age Distribution: Segmentation of existing employees by age is a useful technique to understand the characteristics of the internal supply.

• Skills Inventory: Taking an inventory of skills and knowledge is another method of evaluating the stock of human resources in an organisation.

• Length of Service: Another method of mapping a human resource inventory is by the length of service of the employees.



1. FACTORS AFFECTING INTERNAL LEVELS



Reasons for Increase in Employee Groups



Reasons for Increase in Employee Groups



Reasons for Decrease in Employment Groups



Reasons for Decrease in Employment Groups



EMPLOYEE TURNOVER ANALYSIS



THE COHORT METHOD Before understanding the ‘Cohort Method’, aword about the concept of survivor analysis is to be understood. This is the reverse of employee turnover analysis. Here, the percentage of employees who continue in the employment of an enterprise ismeasured as opposed to the percentage who quit employment.



• In the Cohort Method, an analysis is done of a homogeneous group, i.e. a group of

• same or similar employees or those with same or similar characteristics. Such a

• group is called Cohort.



• THE CENSUS METHOD: • The Census Method overcomes some of the problems

of the Cohort Method by taking• a bird’s eye view of the different cohorts at one point

of time. These views are then• combined to make an estimation of the survival, either

by age or by length of service.



MARKOV CHAIN • In most organizations, employees are divided into several

grades and they move up the organizational ladder from one grade to another. This may be deemed the hierarchical form of a manpower system. By and large, the routes that employees follow through the system are well defined.

• In a simple form of growth and hierarchy, an employee may grow from level I to level II, and then to level III and so on. It is, therefore, assumed that for level II the feeder group is level I, for level III it is level II and so on. From each group natural wastage can be expected due to the exist of employees.













UNIT 5

CONTEMPORARY TRENDS IN MANAGING DEMAND AND SUPPLY



“The new organization equation for success is that profit and productivity are best created by half of the workforce, paid twice as well as producing three times as much”

— Charles Hardy.



EMERGING ORGANISATION STRUCTURES



BUILDING A CULTURE

Building the right organization culture is the key concern of a human resource planner. Some of the cultural imperatives in today’s environment are:

• Flexibility and adaptability of both the enterprise as well as the individuals working for it.

• Global perspective.• Obsession with quality.• Customer orientation.• People orientation, and Creation of a low cost,

profitable operation.



• Culture is really a way of life for an organization. It is the sum total of the beliefs, values and objectives of an enterprise which are manifested through its behavior. In today’s turbulent environment, the anchors that an enterprise has are:

• Corporate vision.• Basic beliefs and values.• Continuous training and development.



PERFORMANCE APPRAISALS

• A good appraisal system should achieve the following:

• Provide periodic constructive feedback to the employee on his/her areas of strengths and areas where improvement is possible.

• Enable the manager and employee to jointly evolve and periodically review the development plans.



STAFFING:

The focus should be on the following qualities:

The candidates must possess the knowledge and skills required to perform the job for which they are being hired. Values and beliefs of the candidates should be in conformity with that of the organization. The candidate should have an open mind and should be adaptable.



• Conceptual skills of a high level are important so that the employee is able to grasp and learn new processes and technologies with ease.

• The employee should be in the learning mode. The concept of lifelong learning is extremely important in order to succeed in the competitive environment of modern days.

• Aspirations and objectives of the employee should be such that they will not conflict with the organization.

• In transient organizations creativity is another aspect that the candidates must possess.



DEALING WITH RELOCATIONS AND REDUNDANCIES

Redundancies occur due to either of the following:• 1. Job getting abolished because of restructuring.

These create surplus manpower that is redundant in the revised context of the business.

• 2. The changing profile of many jobs is as a result of technology changes, ultimately causing redundancy of employees, although the jobs themselves may not get abolished as such.



HUMAN RESOURCE MEASURES AND AUDIT

• The auditors/reviewers may look at the following areas during the periodic audits/ reviews:

• Does the department have vision, mission and value propositions and are these in alignment with the organization's objectives and values?

• What are the success factors for achieving the departmental objectives and what are the action plans for these?

• Are the elements of the strategic focus, i.e. the mission, vision and value propositions oriented to meet customer needs?



• Are the key processes in the department identified? Are the process owners identified with the process performance measures?

• How is the department structured? Is the structure supportive of the key processes of the entity and the objectives of the departments?

• What strategies and practices are in place to determine the needs of the customers? What actions are taken to seek feedback, give feedback and to take corrective actions?

• How are future needs determined? What actions are taken to cater to the emerging needs?



TRENDS IN THE LABOUR SUPPLY • Managing Demand and Supply• Subgroup Participation Changes• Labor Force Quality• Level of Education• Women in the Labor Force• The Older Employee



Part-time and Full-time Time Work• Women• Student • Retired and older persons• Persons with a physical

or mental disability



UNIT 6

MANAGING TRADE UNIONS



TRADE UNION MANAGEMENT : UNION AS ORGANISATION

Union Structure : The Flow of Authority

Member Allegiance: The Organizational Bond

Union Goals



MANAGING INTERNAL AFFAIRS OF THE UNION

Communication within the Union

Decision Making

Union Election

Membership Drive



• LEADERSHIP IN UNIONS: OUTSIDERS AND INSIDERSFactors Responsible for the Persistence of Outsider Leadership1) One of the pertinent reasons for the persistence of the outside leadership is the impression that workers can get more out of their employer through these leaders than through their own efforts.2) Another reason for the persistence of outsiders in the trade unions is that in many instances, the managements themselves provoke the entry of outsiders. By refusing to bargain or even discuss or consult existing unions, which obviously command a substantial membership, managements invite outside political intervention.



Other reasons for the persistence of outsider leaders are:

• i) The relative immaturity of the Indian Trade Union Movement

• ii) Sociological Factors• iii) Employers’ Attitude• iv) Difficulty in Understanding Labour Laws etc.• v) Poor Financial Resources of Trade Unions• vi) Outsiders’ Capability to Produce Better and Quick

Results



The Internal Leader

While there is considerable debate on who is an ‘insider’, for our discussion, an ‘insider’ is an employee who is in service in a plant or an industry. Commenting upon the internal leaders, Ramaswamy makes the following observations:

In the early days of trade unionism, internal leaders were mostly scabs and stooges helping management to keep outsiders at bay. While lackeys are not entirely extinct, Trade Unionism there is now a new breed of internal leaders who are so fearsome that management would rather deal with external firebrands.



UNIT 7

MANAGERIAL UNIONISM



BOUNDARIES OF MANAGERIAL ASSOCIATIONS



The major causes for the formation of managerial unions in India are:1) Narrowing Wage Differentials2) Loss of Identity3) Job Insecurity4) Perceived need for Protection from Militant Trade Unionism5) bureaucratic culture 6) Absence of Participative forum7) promotion policies8) To be a Third Force between the Working Class and the Management



THE ACTIVITIES OF MANAGERIAL UNIONS

a) Protection, Preservation and improvement of Occupational Interests

b) Welfare Activitiesc) Organization interestsd) Channel of Communication



UNIT 8

EMPLOYERS’ ORGANISATIONS



• The first employers’ association in the form of the Chamber of Commerce was established in Marseilles in France in 1599. Such chambers are voluntary Trade Unionism organizations of the business community established to promote the commercial, industrial and civic interests of their members.



STRUCTURE OF EMPLOYERS’ ORGANISATIONS

• Local Associations• Industrial Associations• All-India Federations



• AIMS AND OBJECTS OF EMPLOYERS’ ORGANISATIONSThe objects of the AIOE are inter alia:

• i) To take all steps which may be necessary for promoting, supporting or opposing legislative and other measures affecting or likely to affect directly or indirectly, industries in general, or particular industries;

• ii) To nominate delegates and advisers, etc. to represent the employers of India at the International Labor Conference, United Nations Organization, International Chamber of Commerce and other conferences and committees affecting the interests of trade, commerce and industries, whether as employers or otherwise;



• iii) To promote and support all well-considered schemes for the general uplift of labor and to take all possible steps to establish harmonious relations between capital and labor”.

• Employers’ Federation of India. The principal objects for which the EFI has been established are embodied in its Constitution. These are:

i) “to promote and protect the legitimate interests of employers engaged in industry, trade and commerce;



• ii) to maintain harmonious relations between management and labour and to initiate and support all well considered schemes that would increase productivity and at the same time give labour a fair share of the increased return;

• iii) to collect and disseminate information affecting employers and to advise members on their employer-employee relations and other ancillary problems.”



FUNCTIONS OF EMPLOYERS’ ORGANISATIONS

a) Communicationb) Advisory Functionsc) Educational Efforts d) Representational Functions e) Undertaking Social Responsibilities



Employers’ Representatives on Various Bodies

• Advisory Committee under Equal Remuneration Act• All India Board of Technical Studies (Textile

technology)• Central Advisory Board for Child Welfare• Central Apprenticeship Council• Central Board of Trustees of Employees’ Provident

Fund• Central Board for Workers’ Education• (Central and Several Regional Committees)• Central Committee on Employment• Central Council on Employment



• Central Council of Health & Central Welfare Planning Council

• Central Standing Committee on Bonded, Migrant and Casual Labor

• Committee on Conventions• Indian Institute of Science, Bangalore• Employees’ State Insurance Corporation• ESIC’s Medical Council and Regional Board• (for various States/ Union Territories)• Indian Institute of Applied Manpower Research, New

Delhi• Indian School of Mines, Dhanbad



• Various Industrial Committees• Mica Mines Labor Welfare Fund Central Advisory

Board• Minimum Wages (Central) Advisory Board• Minimum Wages Advisory Board• National Arbitration Promotion Board• National Children’s Fund• National Council for Training in Vocational Trades• National Labor Institute



The First National Commission on Labor made the following observations/ recommendations with regard to the employers’ organizations.

1) Registration of employers’ associations should be made compulsory. Arrangements should be made through the Industrial Relations Commissions (proposed by the NCL) for certification of employers’ organizations at the industry / area level for the purpose of collective bargaining.



2) Employers’ organizations should encourage collective bargaining and voluntary arbitration and avoid third party intervention as far as possible.

3) Regular and scientific arrangements for training of supervisors and middle management personnel in the art or handling labor should receive due attention from the employers’ organizations.



INDUSTRIAL POLICY OF 1956

Industries were classified into three categories

Schedule A : Industries which are to be the exclusive monopolies of the State – 17 industries listed in this category were : Arms and ammunition, atomic energy, iron and steel, heavy castings, heavy machinery, heavy electrical industries, coal, mineral oils, iron ore, and other important minerals like copper, lead and zinc; aircrafts, air transport, railway transport, shipbuilding, telephone, telegraph and wireless equipments, generation and distribution of electric energy.



Schedule B : Those which re to be progressively

State owned and in which the State would gradually setup new undertakings – Twelve industries were included in this category : Other mining industries, aluminum and other non-ferrous metals not included in Schedule A; machine tools Ferro-alloys and tolls steels, the chemical industry, anti-biotic another essential drugs, fertilizers, synthetic rubber, carbonization of coal, chemical pulp, road transport and sea-transport.



Schedule C : All other remaining industries and their development was left to the private sector.



Lecture 3

Unit 9Unit 10Unit 11



UNIT 9

NATURE AND CONTENT OF COLLECTIVE BARGAINING

BLOCK 3



The term “collective bargaining” originated in theWritings of Sidney and Beatrice. Webb, the famedhistorian of the British labor movement, towards theend of the nineteenth century.



• FUNCTIONS OF COLLECTIVE BARGAINING

John Dunlop and Derek Bok have listed five important functions of collective bargaining:

(i) establishing the rules of the workplace;

(ii) determining the form of compensation;

(iii) standardizing compensation;

(iv) determining priorities on each side; and

(v) redesigning the machinery of bargaining.



STRUCTURE OF COLLECTIVE BARGAINING

Collective bargaining ‘structure’ refers to theregularized patterns of union management interaction,Or the network of institutionalized bargainedrelationships. Every bargaining structure comprises ofbargaining levels, bargaining units, bargaining forms,and bargaining scope. Bargaining levels, for example,may be on a national, district, company, plant or sub-plant basis.



NATURE OF COLLECTIVE BARGAINING Five characteristics;

(i) collective bargaining involves group relationships;(ii) it is both continuous and evolutionary;(iii) it interacts with the socio-economic climate;(iv) it is private, but at times involves government

action;(v) it varies from setting to setting.



TYPES OF COLLECTIVE BARGAINING:

• There are two types of bargaining exercises. One is known as conjunctive or

• distributive bargaining and the other integrative or cooperative bargaining.



ELEMENTS OF COLLECTIVE BARGAINING

• Issues for Consideration

• The Procedure for Consideration

• Collective Agreements and their Implementation



COLLECTIVE BARGAINING PROCESS

The more important steps to pre-negotiation preparations are the following:

1) Coordinating preparations among persons responsible for gathering and analyzing information relevant to the bargaining process.

2) Selection of a chief negotiator and bargaining team members.



3) Reviewing previous negotiations because it provides insights into the opponent’s bargaining tactics and probable demands.

4) Gathering data on internal operations and policies of comparable firms through wage and salary surveys.

5) Formulate proposals and priorities.

6) Select a suitable site for negotiations.



CONDITIONS FOR SUCCESS OF COLLECTIVE BARGAINING

1) The union participating in the collective bargaining

process must be strong, democratic and enlightened.

2) One of the principles for establishing and promoting collective bargaining is to give voluntary recognition to trade unions as one of the contracting parties.



3) There should be willingness to give and take by both the parties and interest on the part of both to reach an agreement and to make collective bargaining work.

4) The whole atmosphere of collective bargaining gets vitiated, relations become bitter and strained and negotiations more difficult, if one or both the parties engage in unfair practices.



5) Collective bargaining usually takes place when there are differences between the parties on certain issues.

6) Effective collective bargaining presupposes an

intelligent understanding of both management and union of the needs, aspirations, objectives and problems of the other party.



8) Intelligent collective bargaining demands specialized training. The increasingly technical complexity of the collective bargaining agenda requires expert professional advice, experience and skill on the part of the negotiators.

9) Both management and the union often find it difficult to locate the men on the other side of the table who are authorized to negotiate.



UNIT 10

NEGOTIATION SKILLS



Services

NEGOTIATING PROCESS

“Negotiation is essentially a process of advancing proposals, discussing and criticizing them, explaining and exploring their meaning and effects; seeking to secure their acceptance, and making counter-proposals or modifications for similar evaluation” -- by Dale Yoder



NEGOTIATING MODELS

• Distributive bargaining

• Integrative bargaining

• Attitudinal structuring

• Intra-organizational bargaining



NEGOTIATION GUIDELINES

• Don’t be afraid to negotiate. “Let us never negotiate out of fear. But let us never fear to negotiate.”

• Don’t negotiate when you have nothing to bargain with, or when broader objectives might be prejudiced.

• Mutual respect and trust are fundamental requirements, especially wit a win-win strategy.



• The style of negotiation will depend in part on the qualities and skills of the parties involved. Skilled negotiators will conclude better deals.

• Identify the decision-maker on the other side.

• Identify the concessions you might offer and extend maximum benefit to the other side with the least cost to you.



• Remember, concessions should always be traded, not donated. Encourage the other side to give you concessions by setting deadlines.

• Recognize that a win-win outcome can never be assumed until the other side also signals its compliance.

• Be firm but fair. Do not make ‘unreasonable’ demands.

• Select your team carefully, allocate the key tasks, and specify authority levels.



• Leave the other side thinking that they have won a good deal.

• In order to win the best result from a negotiation, a blend of three important attributes is necessary: skill, aspiration, and power.

• You have nothing to lose by asking for a better deal.

• Don’t negotiate unless you have something to gain. Make initial concessions small and tentative.



• Listen carefully to the words and analyze.

• Keep the meeting on the track.

• Don’t react too unfavorably to your own mistakes.

• Make promises with caution.

• Don’t worry about the end result.

• Be prepared for a deadlock. If necessary, change the timing, the tempo, the topic, and even the team.



Attributes of a Successful Negotiator1) Sets clear objectives2) Does not hurry3) When in doubt, calls for a caucus4) Is prepared5) Remains flexible6) Continually examines why the other party acts as it

does7) Respects face-saving tactics employed by the

opposition



8) Attempts to ascertain the real interest of the other party by the priority proposed

9) Actively listens10) Builds a reputation for having fairness and firmness11) Controls emotions12) Remembers to evaluate each bargaining move in

relation to all others13) Measures bargaining moves against ultimate

objectives



14) Pays close attention to the wording of proposals15) Remembers that compromise is the key to

successful negotiations; understands that no party can afford to win or lose all

16) Tries to understand people17) Considers the impact of present negotiations on the

future relationship of the parties



TACTICS OR STRATEGIES IN NEGOTIATION i) The management has to anticipate the demands

and also understand the main directions in whichthe demands are going to be placed.

i) It is essential that a real team spirit be maintained throughout the negotiations.

ii) Any negotiation strategy should firstly separate the personalities from the problems for arriving at a workable and desirable agreement and secondly, explore the possibilities for harmony and compatibility.



• iv) Negotiation is a two-way traffic. The management as well as the union must gain out of it

• v) There is a greater necessity on the part of the management representatives to give a patient hearing to the demands of the union and not to react even if there is a threat of strike or work stoppage.

• vi) It is also a bad strategy to depute persons of low rank without authority to commit the management on the negotiating table.



vii) It is a good practice always to classify the various demands raised by labour representatives distinguishing the real from the unreal

x) As a measure of follow-up: (a) evaluate prevailing environmental changes and cultivate a healthy pragmatic approach; (b) train and develop rank and file working group to inculcate in them individual effectiveness and professionalism in negotiation; and (c) develop specific action-plans for negotiation based on prevailing situation.



UNIT 11

ISSUES AND TRENDS IN COLLECTIVE BARGAINING



• Collective bargaining has been characterized as a form of industrial democracy and industrial government. It involves the process of negotiation, administration, and interpretation of collective agreements covering wages, hours of work, and other conditions of employment for a specific period of time.



APPROACHES TO COLLECTIVE BARGAINING

• Industry Bargaining • Enterprise Bargaining • Concession Bargaining • Composite Bargaining



The following steps may be considered for promoting

collective bargaining in our country:1) Collective bargaining should be declared as an integral part

of India’s national industrial relations policy. In order to give it a constitutional sanctity, it should be incorporated in the Directive Principles of State Policy.

2) The two relevant instruments setting international standards regarding collective bargaining, namely, Convention 98 concerning the application of principles of the right to organize and to bargain collectively adopted in 1949, and Recommendation 91 concerning collective agreements adopted in 1951, should be ratified/implemented.



3) Collective bargaining should be adopted as a part of the corporate personnel policy in all public sector enterprises, departmental undertakings, and in public utility services.



4) There should be drastic trade union reforms such as: (a) recognition of the majority union as a bargaining agent; (b) development of a trained and educated cadre of worker-leaders through strong, enlightened, responsible and democratic trade unions; and (c) gradual de-linking of trade unions from political parties.

5) More emphasis should be given on mutual settlement of industrial disputes through collective bargaining rather than adjudication. A beginning has to be made in this direction by declaring that collective bargaining will acquire primacy in the procedure for settling industrial disputes.



Lecture 4

Unit 12Unit 13Unit 14Unit 15



UNIT 12

EVOLUTION, STRUCTUREAND PROCESSES



UNIT 12

EVOLUTION, STRUCTUREAND PROCESSES



The term ‘workers’ participation in management’ means different things to different people depending upon the aims, extent to which participation is introduced and methods used to achieve participation.



• OBJECTIVES OF WPM

• i) to elevate workers’ status in industry;• ii) to promote democratic practices in the resolution

of industrial relations problems;• iii) to mobilize the energy and intelligence of workers

and management with a view to increasing productive efficiency;



• iv) to provide labour a sense of importance, pride and accomplishment, freedom and opportunity for self-expression;

• v) to promote cordial relations between management and workers;

• vi) to prevent alienation and exploitation of labour; and

• vii) to create a good communication system within the industrial establishment.



Degrees and Forms of Participative Management

Informative Participation

Consultative Participation

Associative Participation

Administrative Participation

Decisive Participation

Ownership Participation



MODELS IN WPM

• Collective Bargaining Model

• Works Councils Model

• Joint Management Councils Model

• Workers’ Self-management Model



UNIT 13

DESIGN AND DYNAMICS OF PARTICIPATIVE FORUMS



• Workers participation in management is one of the most significant modes of resolving

• industrial conflicts and encouraging among workers a sense of belongingness in

• establishment where they work.



RATIONALE FOR PARTICIPATION

1) Behaviouralist and Human Relations Schools

2) The Argument of Advocates of Industrial Democracy

3) The viewpoint of the “Diehards” (Radical sociologists and Marxists)



• A careful study of the functioning of the participative forums in the Indian context indicates that the following dynamics are involved in participation:

• 1) Importance/ Inclusion of Substantive Issues in Participative Forums

• 2) Power as an Integral Aspect• 3) Acquiring Legitimacy and Directive Authority • 4) Impediments/hurdles to the Functioning of

Participative Forums



UNIT 14

STRATEGIES FOR IMPLEMENTING PARTICIPATION



FACTORS RESPONSIBLE FOR FAILURE OFPARTICIPATIVE SCHMES IN INDIA 1) Lack of Positive Attitude of the Management 2) Lack of initiative on the part of Trade Unions3) 3) Ideological differences between Employees

and Employers regarding the degree of participation

4) 4) Delays in implementation/Non-implementation of the decisions of the participative bodies



5) Workers’ attitude to Participative Schemes

6) Political Unionism/Multiplicity of Unions and Inter-Union Rivalries

7) Narrow scope of Participative Forums

8) Consultative form of Participation

9) Multiplicity of Participative Forums



STRATEGIES FOR MAKING PARTICIPATIVE FORUMS EFFECTIVE1) A scheme of workers’ participation in

management cannot be developed unless a permissive environment is first created. There are three elements which may help building the permissive environment: (i) industrial relations climate must be peaceful; (ii) there must be a strong and representative union; and (iii) results of any experiments in this regard need not be time-bound.



2) Workers’ Participation in Management can succeed reasonably only when the parties concerned start with an initial faith in the system. This however, is possible only when both union and management perceive the schemes as a useful aid to the realisation of their respective goals.

3) It is important that the objectives set for Workers’ Participation in Management should not be ambiguous and consequently vague.



4) It is important not confuse the larger question of the political struggle for power distribution between different social groups on the one hand, and participative management for sorting out shop floor level issues on the other. If the larger question of power distribution is separated from the goals of participative management related to limited and specific issues, the chances of success will improve.

5) It is important that participative forums must play a complementary role to the process of bargaining



6) There is scope for selective and careful legislative support to workers’ participation in management.

7) As far as possible, the institutionalized form of participation should be less emphasized, and efforts should be made to encourage participation through changes in the leadership styles, communication processes, inter personal and inter-group relations

etc.

8) It is needless to enforce uniformity across the industrial scene so far as any form of participative management is concerned.



Lecture 5

Unit 15

Unit 16

Unit 17



BLOCK 5



UNIT 15

CONCILIATION, ARBITRATION AND ADJUDICATION



The grievances may be real or imaginary, valid or invalid, genuine or false; yet in all cases, grievances produce unhappiness, discontent, indifference, low morale and frustration, which may adversely affect the employees’ commitment, concentration, efficiency and effectiveness. A large number of work stoppages, shop floor incidents, strikes, violent and disorderly behavior patterns can be attributed to the faulty handling of grievances by managers or, in certain situations, to their refusal to recognize the very existence of grievances.



Classification of Grievances

Grievances may fall into certain broad categories such as:

a) Wages, incentives, work assignments, complaints bout)ob specifications;

b) Interpretation of rules, transfer, seniority, promotion;

c) Working conditions, safety, health and welfare amenities;



d) Supervision, discipline, favoritism, victimization, interpersonal relations; and

e) Violation of the term of collective agreements, unfair labor practices and wrongful extraction of work.



GRIEVANCE RESOLUTION : APPROACHES

a) Whether the organization should have a grievance mechanism at all?

b) Whether it should be formal/structured or free-wheeling/informal?

c) Single-level or mu1ti-level?

d) Whether unilateral or participative?

e) Whether time-bound or open-ended?

f) Whether bipartite or Tri-partite?



Grievance handling is essentially a 'problem-solving‘ exercise. A typical problem solving process involves the following steps:

i) Identify and define the problem; separate the cause from symptoms

ii) Collect factual data and analyze it iii) Generate alternatives and weigh them in terms

of their effectivenessiv) Decide, communicate and follow-up



Role of Personnel Department• The role of personnel department should be:

a) To devise a sound grievance procedure which could serve as an effective upward communication channel;b) To advise line managers about the importance of a sound grievance handling system and its implementation;c) To train the supervisory personnel in interviewing and counseling skills;d) To implement promptly the decisions taken by the grievance committee, and to maintain effective and close liaison with all concerned;



e) To maintain cords of the activities of the grievance committee such as the details of meetings held, actions taken and implemented;

f) To review the procedure and, if necessary, to modify the existing procedure to suit the changing circumstances; and

g) To follow up individual cases of grievances settled and identify their effect on the employees concerned as well as on other employees of the organization.



UNIT 16

CONCILIATION, ARBITRATION AND

ADJUDICATION



State intervention in India in labor matters can be traced to the enactment of the Employers and Workmens’ Disputes Act 1860, which provided for the speedy disposal of disputes relating to the wages of workmen engaged in railways, canals and other public works, by Magistrates



• Collective bargaining: Collective bargaining, as a method of settling industrial disputes, has a long history all over. In terms of S. 18 (I), an agreement arrived at between the parties, otherwise than in the course of conciliation proceedings, is binding on the parties thereto. Indeed, a majority of issues concerning day-to-day employer-employee relations are settled at the bipartite level without the intervention of a third party.



Conciliation• Conciliation is simply mediation by a third party

who intervenes in the dispute. A conciliation officer does not enjoy any statutory power or authority to decide the dispute or to impose his decision on the parties to the dispute. His role is essentially one of 'enabler', in the sense he brings the parties to the negotiating table, facilitates negotiation and/or the process of dispute resolution, offers his expert advise to the parties and does all that is necessary to make the disputants arrive at an amicable settlement.



UNIT 17

DISCIPLINE IN INDUSTRY



THE "RED-HOT-STOVE" RULE

i) Advance warning

ii) Immediate effect

iii) Consistency

iv) Impersonal approach



'discipline' means "adherence to the norms of behavior”



INDIVIDUAL INDISCIPLINE

Individual discipline is manifested deviant behavior of employees acting alone as, for instance, habitual absence, negligence, theft, insubordination, disorderly behavior, fraud, tardiness and the like. In a very general sense, acts of individual indiscipline are relatively simple and are capable of being explained in terms of causation.



COLLECTIVE INDISCIPLINE

Collective indiscipline is more complex both in form and substance and is often elusive of rational explanation, posing a serious threat to industrial peace, harmony and productivity. Cancel-technology go-slow, illegal strike, militancy and inter-group altercations culminating in violence can be cited as illustrations of Collective indiscipline.



Misconduct is: “improper behavior”



ACTS OF MISCONDUCT: CLASSIFICATION

1) Misconduct relating to dutya) Negligence of dutyb) Engaging in work similar to that of the

employerc) Absence without leaved) Late attendancee) Strikef) Go-Slowg) Gherao



1) Misconduct relating to discipline

a) Rowdy conduct in the course of working hours;

b) Misbehavior committed even outside working hours but within the precincts of the concern and directed towards the employees of the said concern;

c) Conduct proved against an employee which would render him not worthy of employment; and more specifically,

d) Writing a letter to the director of the company containing offensive remarks against him;



a) Behavior insulting and insubordination to such a degree as to be incompatible with the continuance of the relation of employer and employee;

f) Abusing a superior officer by using vulgar and filthy language;

g) Preferring a false complaint to police against a superior officer knowing it to be false with a view to bringing the management into humiliation;

h) The act of wrongfully restraining and confining the manager by workmen with a view to making him concede to their demands;



3) Misconduct relating to morality • 'Morality' means particular moral principles or

rules of conduct - good and upright behavior as, for instance,justice, honesty, modesty, etc. – conduct conforming to customs or accepted standards of a civilized society.

• Theft• Dishonesty and fraud• Disloyalty• Corruption• Moral turpitude:



CHARGE SHEET• Charge sheet is the document, which sets out

the alleged acts of omissions and/or commissions on the part of the workman. In other words, it is a statement of allegations.



HIERARCHY OF PUNISHMENTSThe standing orders /service rules provide for the following punishments in the ascending order of gravity.

• 1) Warning• 2) Censure• 3) Suspension without wages for a period not exceeding

15 days.• 4) Stoppage of increment for a maximum period of three

years, if the employee is in a graded scale of pay.• 5 ) Reversion to the next lower grade• 6) Dismissal from service.



Lecture 6

Unit 18

Unit 19



BLOCK 6

UNIT 18

STRATEGIC EMPLOYEE RELATIONS: EMERGING TRENDS



‘Strategy’ can be defined as the “framework which guides those choices that determine the nature and direction of an organization”; “a comprehensive plan of action that guides allocation of resources to achieve long-term organizational objectives.



INDUSTRIAL RELATIONS STRATEGYIndustrial relations strategy can be defined as the ‘long-term goals developed by management to preserve or change the procedures, practices or results of industrial relations activities over time’. The existence of such strategies is based on the following assumptions:

• Corporate management determines overall strategies to achieve the organizational goals;

• Strategic thinking is a prerequisite for organizational success;



• Top management have some choice in the matter;• The choice of industrial relations strategies and

policies rationally implies that they be limited to other objectives and policies; and

• There should be a direct relationship between industrial relations strategies and business strategy;



Generic Characteristics of Large non-union Firms

Large non-union firms are generally characterized as:

• American and privately owned;• operating mainly in non-manufacturing and service

sectors;• employing mainly non-manual, skilled or partially

skilled workers;• profitable or highly profitable and commercially

successful in expanding product markets;



• have ‘covertly non-union personnel policies’;• justifying their non-union status by substituting

alternative forms of employee representation and providing higher rates of pay and better conditions of work than unionized organizations;

• claiming to have enlightened and progressive personnel and HRM policies and



• ‘people centered’ managerial styles making unions and collective bargaining in irrelevancy;

• have ‘single status’ for employees, employment security, promotion from within; and

• have careful selection and training for management, especially at supervisory level.



UNIT 19

CULTURAL ASPECTS OF EMPLOYMENT RELATIONS



TECHNOLOGICAL REVOLUTION

• The Information Technology revolution has witnessed the

• replacement of the traditional ‘skill’ workers by ‘knowledge’ workers. Technological

• advancement has transformed our idea of work.



GLOBALISATION

Globalization has brought about a sea change in the cross- cultural interactions on a scale unprecedented in the history. The increasing congruence of world’s cultures is a direct product, in the first instance, of industrialization and, in the second, globalization of the late 20th century. Advanced transportation and communication systems such as e-mail, along with international migration, have brought peoples once isolated into contact with other societies.



EQUITY AND FAIRNESS:

Although the concept of ‘fairness’ or ‘equity’ is implicit in the conduct of industrial relations, it is explicitly most frequently associated with considerations of salary differentials and termination of the contract of employment. In an environment in which collective bargaining agreements are to be replaced by individual, one-to-one bargaining between the employer and the employees, particularly, in matters of wage and salary determination, the whole process may result in a heterogeneous employment relationship coupled with wide disparities among employees of the same skill level, grade and position.



POWER AND AUTHORITY :The concept of ‘power’ and ‘authority’ have a significant influence in industrial relations. The employment relationship is inherently a ‘power/authority’ relationship. The expressions ‘power’ and ‘authority’, though used interchangeably, are different. power is a wider concept and can be defined as the ability to influence others, whereas authority means the formal power possessed by, or delegated to, a person by virtue of the office he holds in an organizational setting. Authority thus implies the right to decide what should be done and includes the right to do it or to get it done by others. In a typical industrial organization, managerial personnel exercise formal authority in relation to their employees.



French and Raven identified five major inter-related sources of power within the organizational relationship:

• Reward Power: • Coercive Power: • Legitimate Power:• Referent Power: • Expert Power:



RIGHTS, DUTIES AND OBLIGATIONS

• It is something that he is legally entitled to from certain other person or persons or the world at large. Right is the correlative of duty in so far as, a right, in its strict sense, has a corresponding duty.

• The existence of a right in one person means that some other person is under a corresponding duty.



CONFLICT VERSUS CO-OPERATION An organization with a business orientation, where

individuals and groups are engaged in the production of goods or rendering services, it is natural that the interests of the organization on the one hand and that of individuals and groups on the other frequently come into conflict.



• Conflict of interests is inherent and is inevitable in employer employee relations. Equally inevitable is the satisfactory resolution of conflict to the mutual advantage of both the parties on a give-and-take basis. That is what collective bargaining and other mechanisms of conflict resolution are all about. Included in the bargaining process are wages, allowances, benefits, leave, holidays, productivity linked incentives, conditions of service, etc.



THANKS

Documents

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