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Industrial Relations

Nature of Industrial Relations


Questions
1. 2. 3. 4. What are the main components or factors in the system of IR? Define industrial relations. What are its characteristics and objectives? Point out the difference between HRM and IRM. What are the pre-requisites or fundamental conditions of good IR?

Reference Books
1. 2. 3. 4. Dynamics of IR Mamoria & Mamoria Industrial Relations A.N Sharma Human Resources and Personal Relations Subha Rao Mercantile Law & Industrial Law N.D Kapoor

Answers
1. What are the main components or factors in the system of IR?

Workers / Union

Management / Federation

Exploitative / Authoritative Authoritative / Benevolent Consultative Participative

Government

Industry Labour Conference (ILC) Standard Labour Council (SLC) Mediators or Conciliators Arbitrators Adjudication

Other Factors: 1. 2. 3. 4. 5. 6. 7. Institutions Economics Sociological Psychological Technological Legal / Government Politics

2. Define industrial relations. What are its characteristics and objectives? Industry has three tests a. Systematic production b. Employer and Employee c. Production and distribution Definition of Industrial Relations: 1. Dale Yoder: It is a whole field of relationships that exists because of necessary collaboration between men and women in the employment process of industry. 2. Teed and Metcafe: Industrial Relations are composite results of attitudes and approaches of employers and employees towards each other particularly with regards to planning, supervision, direction and co-ordination of activities of organization with minimum human effort and friction with spirit of co-operation for genuine well being of all its members. 3. Clegg: Rules governing employment together with the ways in which they are made and changed and their interpretation and administration. 4. ILO: IR deals with the state and employers and workers organization on one hand or relationship between occupational organizations themselves. Characteristics of IR: 1. Industrial Relations do not emerge in a vacuum but are bourne out of employment relationship in industrial setting. 2. The three main parties are employer and employee along with their unions and the government which play a significant role. 3. IR involves government who shall shape or mould the relationships through laws regulations, rules and collective bargaining agreements laid down by government from time to time. 4. The study of IR includes vital environmental issues such as socio-economic, political, legal and technological factors that have an impact at global market. 5. It aims at production and distribution of goods and services irrespective of profit objective. 6. IR is characterized by co-operation and co-ordination as well as conflicts. The latter is the basis of adverse relationship leading to a dispute.

Objectives of IR are 5 fold: 1. To safeguard the interest of both management and the workers union. 2. To felicitate production and productivity. 3. To minimize employee turnover and absenteeism. 4. To avoided any unhealthy atmosphere such as strike or gherao by the workmen or lockouts, a temporary closure by the employer. 5. To achieve a sound and harmonious labor management relationship.

3. Point out the difference between HRM and IRM. a. Parties: i. HRM Basically two parties employer and employee. ii. IRM Employer, Employee their union and government. b. Policies Implementation: i. HRM It formulates policies, objectives of HR and implements them. ii. IRM This implementation of HRM policies results in IRM. c. Reformulation: i. HRM Objectives policies and procedures based on industrial conflicts are the outcome of unsound IR which demands reformulation. ii. IRM Unsound IR based on HR results in industrial conflicts demanding a reformation. d. Approach: i. HRM - The employee contacts his superior or HOD to resolve the issue. ii. IRM Employee can approach even the top management through his union. e. Problem Areas: i. HRM They are usually personnel in nature and are related to moral and social behavior of the employee. ii. IRM Besides being personnel, the problem extends not only towards the organization but at the national and the international levels as well. f. Remedies: i. HRM - Usually grievances and discipline procedures are confined within the organization. ii. IRM Laws, rules and collective bargaining agreements with settlements through the government are often resorted to.

4. What are the pre-requisites or fundamental conditions of good IR? The 5 functional pre-requisites for an ideal IR are: 1. Top Management Support: Since IR is a personnel service, it must derive authority from the line organization. Thus there must be an IR director reporting to the top line authority. 2. Sound Personnel Policies: The purpose of such policies is to decide ahead as to what should be done with the large number of problems before time. 3. Adequate Practices: A system of procedures is necessary to translate the intentions into actual practice. They are the actual tools of management. 4. Supervisory Training: To carry out the policies and practices of the IR staff, the supervisors and HOD must be trained in leadership, communication and persuasion. 5. Follow up Results: Constant review of IR programs is necessary, not only to evaluate existing practices but also to keep check on the undesirable tendency of the workers such as absenteeism, turnover, low morale, etc. Employee suggestions must be supplemented with continuous research to make sure that policies are perused to suit the companys needs and requirements.

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