INDUSTRIAL & LABOUR

RELATIONS
Unit - 1
Industrial Relations: The changing
concepts of Industrial Relations,
Factors affecting employee stability,
Application of psychology industrial
relations.

WHAT IS
INDUSTRIAL
RELATION?

INTRODUCTION
WHAT IS INDUSTRIAL RELATIONS ?
Relationship between employers,
employees and the trade unions

MULTIDISPLINARY FIELD THAT

STUDIES THE EMPLOYMENT
RELATIONSHIPEMPLOYE
RS

EMPLOYEE
S

TRADE
UNIONS

 Industrial relations - multidisciplinary

field
that
studies
theemploymentrelationship.
A dynamic concept - depends upon the
pattern of society, economic system and
political set up of a country and changes
with the changing economic and social
order.
Comprises of network of institutions trade
unionism, collective bargaining, employers,
the , law and the state which are bound
together
by
common
values
and
aspirations.

 Increasingly being called employment

relationsoremployee
relationsbecause of the importance of non-industrial
employment relationships.
Refers to any productive activity in which
an individual (or a group of individuals) is
(are) engaged
Explains
the
relationship
between
employees and management which stem
directly or indirectly from union-employer
relationship.
A relation of Individual or group of employee
and employer for engaging themselves in a
way to maximize the productive activities.

Definition
J. Henry Richardson
"Industrial Relation is an art, the art of living
together for purposes of production.
A/c to ILO (international labor
organization)

deal with either relationship between the state

and employers and workers

organizations or the relations between
the occupational organizations
themselves

Definitions
J.T. Dunlop - the complex interrelations
among managers, workers and agencies
of
the
governments.
Dale
Yoder
the
process
of
management dealing with one or more
unions with a view to negotiate and
subsequently
administer
collective
bargaining agreement or labour contract.

 Labor
management
relation, employee
employer
relations,
union
management
relations,
personal
relations,
human
relations and so on.

IR is the relationship
between employees
and management in
the day - to - day
working of industry .

IR describe
relationships
between
management and
employees or
among employees
and their
organizations that
characterize or
grow out of
employment.

NATURE OF IR

Concerned with relationship of

management and workers.

To protect the interests of employees
Concerned with systems, rules and

procedures used by unions & employees

Role of regulatory mechanism in

resolving any industrial disputes.

OBJECTIVES OF IR
To facilitate production and productivity
To safeguard the rights and interests of
both labour and management by enlisting
their co-operation
to achieve a sound, harmonious and
mutually beneficial labour management
relations
To avoid unhealthy atmosphere in the
industry, especially work stoppages, go
slows, gheraos, strikes, lockouts

to establish and maintain industrial

democracy.

THREE MAIN ACTORS

WORKERS
AND THEIR
ORGAINZATI
ONS
(TRADE
UNIONS)

EMPLOYERS
& THEIR
ORGANIZATI
ONS

GOVERNMEN
T

IMPORTANCE OF IR

Uninterrupted production
Reduction in Industrial Disputes
High morale
Mental Revolution
Reduced Wastage
Economic growth and Development

good industrial relationsis the basis of

higher production with minimum cost and
higher profits

results in increased efficiency of

workers

CHANGING
APPROACHES OF IR

Approaches to Industrial Relations

Psychological approach
Sociological approach
Human relations approach

Psychological approach
The problems of IR have their origin in the perceptions
of the management, unions and the workers.
The conflicts between labour and management occur
because every group negatively perceives the
behaviour of the other i.e. even the honest intention of
the other party so looked at with suspicion.
The problem is further aggravated by various factors
like the income, level of education, communication,
values, beliefs, customs, goals of persons and groups,
prestige, power, status, recognition, security etc are
host factors both economic and non-economic which
influence perceptions unions and management
towards each other.
Industrial peace is a result mainly of proper attitudes
and perception of the two parties.

Sociological approach
Industry is a social world in miniature.
The management goals, workers attitudes, perception of
change in industry, are all, in turn, decided by broad social
factors like the culture of the institutions, customs, structural
changes, status-symbols, rationality, acceptance or resistance
to change, tolerance etc.
Industry is inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
As industries develop, a new industrial-cum-social pattern
emerges, which provides general new relationships, institutions
and behavioural pattern and new techniques of handling
human resources. These do influence the development of
industrial relations.

Human relations
approach
Human resources
are made up of living

human

beings.
They want freedom of speech, of thought of
expression, of movement, etc.
When employers treat them as inanimate objects,
encroach on their expectations, throat-cuts,
conflicts and tensions arise.
In fact major problems in industrial relations arise
out of a tension which is created because of the
employers pressures and workers reactions,
protests and resistance to these pressures through
protective mechanisms in the form of workers
organization, associations and trade unions.

FORMER APPROACHES

UNITARY
APPROAC
H

PLURALIS
TIC
APPROAC
H

INDUSTRI
AL
RELATIO
NS

MARXIST
APPROAC
H

CURRENT APPROACHES
FORMULATING EMPLOYEE FRIENDLY
LAWS
FRAMING TRANSPARENT HR POLICIES
PROVING BETTER WORKING
FACILITIES FOR THE EMPLOYEES
MAKING THE EMPLOYEES INVOLVED
IN MANAGEMENT DECISIONS.

Factors affecting employee stability

Working condition
Poor compensation strategies
Poor job matching
Less communication between
employee and managers.
Poor employee evaluation techniques
Ineffective HR policy

Application of
psychology to IR
FOR BETTER UNDERSTANDING OF THE
HUMAN BEHAVIOUR.
HELPS TO SOLVE PROBLEMS AT WORK
PLACE
HELPS TO IDENTIFY THE TRAINING
NEEDS OF THE EMPLOYEES
HELPS TO ENHANCE QULAITY OF WORK
LIFE
HELPS TO DEVELOP PERFORMANCE
MEASURES

ANY
QUERIES?

THANK
YOU