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Approaches to

Industrial RelationS

Presented by:
Group 1
• Amber Kumar
• Khushboo saxena
• Manvendra Singh
• Prerna Khanudi
• Sukriti Harit
TOPICS INCLUDED:
• Introduction to IR:
– Meaning
– Scope
– Objectives Approaches to IR
• Dunlop’s framework
• Theoretical perspective: Unitary, Pluralist, Radical and
trusteeship
• Rule Making and IR
• Basic Concepts and values
• Partnership Model of Sound IR
• Obligations of the management and union
• Industrial relations scenario in india
MEANING OF IR
Relationship between:
1.

WORKERS,
MANAGEMENT PARTICULARLY UNIONS

2.

EMPLOYEES
EMPLOYERS
Relationship between:
3.

EMPLOYEES
EMPLOYERS

MEDIATORY
GOVERNMENT
INSTITUTIONS
…contd
t
 The framework of this relationship is
set by government though
legislations and regulations.

 Aspects covered
employment relationship
human resource management
labor relations
SCOPE OF IR
• The scope or industrial relations is quite vast. The main
issues involved here include the following:

 Collective bargaining
 Machinery for settlement of industrial disputes
 Standing orders
 Workers participation in management
 Unfair labor practices
OBJECTIVES OF IR
to facilitate production and productivity;

 to safeguard the rights and interests

to achieve a sound, harmonious, and mutually


beneficial labour management relations

 to avoid unhealthy atmosphere in the


FOUR APPROACHES TO
INDUSTRIAL RELATIONS
My boat Get off, if you
Attitude don’t like it!
We sail together.
Shared boat Do not rock the
Attitude boat.
It is our own common
enterprise. Let us
Our boat combine our efforts to
Attitude better it.

With a sense of ownership


Your boat and pride, the purpose is
Attitude to let employees whole
heartedly contribute to the
cause of enterprise.
DUNLOP ‘S FRAMEWORK OF
INDUSTRIAL RELATION
SYSTEM
Inputs Processes Output

Actors Bargaining,
Contexts: Lawmaking Rules
Env. contents etc

Ideology

Feed Back
FOUR ELEMENTS
• ACTORS:
– Managers and their representatives
– Workers and their representatives
– Specialized government agencies concerned with
workers, enterprises and their relatioinship
• CONTEXTS
– Technological characteristics of the workplace
and work community
– The product and factor markets and budgetary
constraints that impinge on actors
– Locus and distribution of power in larger society
FOUR ELEMENTS (..contd)
• IDEOLOGY:
A body of common ideas that defines the role and
place and the ideas that each actor holds towards
the place and the function of the others in the
system
• FEEDBACK
– Regulation and policies of the management hierarchy
– Regulations, decisions, awards or orders of govt.
agencies
– Collective bargaining agreements
THEORETICAL PERSPECTIVE

Unitary
Pluralist
Radical
Trusteeship
Unitary

• "one happy family"


• Emphasis on mutual
cooperation, for common
purpose
• Paternalistic approach
• Trade union are
undesirable,
Pluralist
 Comprises of powerful and divergent sub-groups
 the two predominant sub-groups are the
“management and trade unions”.
 legitimate loyalties and with their own set of
objectives and leaders
 The focus is on the solution of conflict rather than
its generation.
 Uses formal system of collective bargaining as a
method of conflict resolution.
 Two aspects of relationship between labor and
management
a)market relationship
b)management’s dealing with labor
Radical
 Historical development of the power
relationship between capital and labor.
 Characterized by the struggle of labor
and capital to acquire influencing
position on each other.
 Capitalist ownership aims to maximize
their profit.
 Conflicts are inevitable according to this
approach.
 Trade unions are required to represent
the labor.
Trusteeship
 It was proposed by Mahatma Gandhi.
 the theory of trusteeship is based on the view that all
forms of property and human accomplishments are gifts
of nature.
 It aimed at achieving economic equality.
 There should be perfect understanding between capital
and labor, mutual respect, recognition of equality.
 Conditions put by Mahatma for strikes.
a)the cause of the strike must be just.
b) there should be no violence
RULE-MAKING AND IR
IN 1958 DUNLOP referred to the network of
rules as one of the out puts of industrial
relations. which is originated from different
source like legal, political, economic, social
and historical context:
Constitution and legislative framework.
Single party; unilateral
Cont……….
 Two parties; collective bargaining

THIRD PARTY:- Third party rule


settings create unhappiness.

 MULTIPLE PARTY :- Social code, has


to follow the standards set .
BASIC CONCEPT AND VALUES
 Equity and Fairness:-
 Equity: “Equal Treatment to One and All
under Comparable Circumstances”
 Fairness: “utilization when One goes by What
the Majority Accepts”
 Power and Authority:-
Power is the ability to influence ,impose ,
or control. Authority is the right to expect
and command obedience
Cont……….
 Individualism and Collectivism:-
 Individualism and collectivism are conflicting
views of the nature of humans, society and the
relationship between them.

 Integrity, Trust and Transparency:-


 Integrity is adhering to what is professes.
 Trust is established between and among
people.
 Transparency is promoted through sharing of
information, openness in communication etc..
PARTNERSHIP MODEL OF SOUND IR
 Management at the enterprise level create an
atmosphere, conducive to partnership between
the labor and management.
The basic ingredients of a partnership model for
cooperation are..
• Sharing information
• Consulting with each other on a regular basis
• Brainstorming together
• Bridging the gap between precept and practice
Cont……
• An Understanding between managers
and top officials of the union is not
enough for cooperation between labor
and management but it also requires
bridging the gap between policy-
making, implementation, idea and
action.
OBLIGATIONS OF THE MANAGEMENT
AND THE UNION
 Obligation of management:-
 Clarify and reason with the other party
 Provide for say and share for all employees
 Focus on fairness
 Empower people
 Be transparent because trust begets trust
 Learn to manage the ego
Cont……..
 Obligation of the union:-
 Develop a long-term perspective
 Understand the link between the macro
and micro relationship in assessing the
behavior and performance of a firm
 Understand and assess the
consequences of working together
verses working at cross-purposes
INDUSTRIAL RELATIONS
SCENARIO IN INDIA
The Second National Commission on Labor
2002 Has made the following observations
 It is increasingly noticed that trade
unions not normally give a call for strike
because they are afraid that a strike may
lead to the closure of the unit.
 Service sector workers feel they have
become outsiders and are becoming
increasingly disinterested in trade union
activities.
 the nature of disputes for demands is
changing.
 'The labor adjudication machinery is
THANK YOU