overview of ir

8/8/2019 Overview of IR

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Definition

IR refers to all types of relations that exist in anindustrial enterprise represented by employer andemployees

Formal, informal and Mixed relation

Edwin B. Fippo.


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Industrial relations

ndustrial relations commonly denotes

employee- employer relations

Industrial relations are born out of

employment relationship in an industrial

setting


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The field of industrial relations (also called

labour relations) looks at the relationship

between management and workers, particularly

groups of workers represented by a union.


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History of IR

Before late 18th century there was no word like IR into existence

Small business : reason to direct relationship bet. Workers and

masters

Personal and informal

No necessity of middleman for communication

Radical changes through industrial revolution in late 18th century

Introduction to use of power machine and factory system

Requirement of large amount of workers

As a result ..Absence of direct communication


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Concept ofManagement came into existence

Separation of ownership from management distinguished theowners of the companys capital, its management and its workplace

Natural trust and goodwill got replaced by mutual suspicion and

hatred

Need to rebuild the relations between employee and employer


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Lets understand the Significance of

Industrial Relations

Good IR helps in economic progress of the country

- Problem of economic productivity

- Burden of Establishing and maintaining good relations

It helps management to form labor relations policy and their

translations into action

Good IR helps to boost the discipline and morale of workers

- It ensures orderliness, effectiveness, and economy in the use ofresources


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Salient features of IR(What we understand)

Industrial Relations are outcome of employmentrelationships in an industrial enterprise

The work situation may provide method of adjustment and

cooperation with each other

The important actors of Industrial Relations are: --employees or their organizations

--employers and their associations

--and government


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So what could be the objectives of

IR? Develop and promotion of harmonious labor

management relation

Maintenance of industrial peace and avoidance of

industrial conflicts To safeguard the interest of labor, management, industry

and NATIONAL ECONOMY as a whole

Workers to have a say in decision making

Encourage and develop trade union Avoiding industrial conflicts

To boost the discipline and morale of workers


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IR covers some of the following Areas

Collective Bargaining : Negotiation about working conditions and terms of

employment between employer and employee to reach an agreement

Role of management, unions and government

Machinery for resolution of industrial disputes :works committee ,

Concillatory officer( settlement) ,labor courts etc.

Grievances,labor welfare and security

Trade unions,workers participation

Labour legislation : Internal social responsibility to provide some basic

amenities apart from pay, protect interest of workers, social welfare


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There are three majors players in industrialrelations

1. Management / employers

2. Labor /workers /employees

3. Government / regulator


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Actors of Industrial Relations

Employee/ Workman

Union

Employer

Government

Consumer


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Employee

Improve their condition of employment

Views in any grievances

Exchange view and ideas with management

Share in decision making

components of unions and associations

Responsible for family and earning

Profit makers for organizations


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Employer

Main factor for generating an employment

Creating and maintaining employee motivation

Obtaining commitment from workforce

Achieving high levels of efficiency

Negotiating terms and conditions of employment

Employer includes proprietors, partners, joint stock

companies, state and central government


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Government

The govt. regulates the relationship between the management and

the labour

Seeks to protect the interest of both the groups.

The authority of the courts to settle legal disputes.

It controls IR for:

--saving the workman from exploitation where unions are weak

--ensuring planned economic growth of country and saving its

limited resources from wastages and strikes


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Consumer

Much neglected person in the society

He brings about pressure on employer as well as employee for

speedy solutions of industrial problems


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Conditions for Good Industrial

Relations Past record of industrial relations (harmonious or rivalry)

Economic satisfaction of workers (basic survival need)

Social and Psychological Needs of workers: incentives

Off the job conditions of the workers

Strong and Enlightened responsible labor unions

Negotiation skills and attitude of management and workers (varying

backgrounds, must possess empathy)

Legislation :Govt intervention, 3 rd major force

Education, training and development of workers Inter personal relations, Social and psychological satisfaction :

supportive climate along with economic rewards


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Cause of Poor Industrial Relations Uninteresting nature of work : due to automation role of worker reduced,

stereo typed work

Political nature of unions : : inter union rivalry, multiple unions, political

parties involvement

Poor wages : Inequity in wages , complicated wage system

Occupational instability : do not want changes in the job-fear or insecurity

Effects

Resistance to change, frustration and social cost , multiplier effect (total

loss)

Unhealthy behavioral climate : culture, tradition, methods

Unfair practices

Outdated and automated laws


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Suggestions to improve Industrial

Relations Both management and union should develop constructive attitude

towards each other with mutual constraint

There should be an existence of mutual trust and confidence

All basic policies and procedures relating to IR should be clearly

communicated to all

Right kind of union leadership: management should create

conditions that would stimulate the growth


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Thank You.


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Approaches to IR


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Systems approach

Systems framework by John Dunlop

Actors

Environmentalcontents

Ideology

input

bargaining

Conciliation

arbitration

process Rules

settlement

output


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Actors: managers, workers and government agencies

Actors influenced by several forces in environment technology,

markets and power relation in society

Ideology: Though there is conflict among the actors but there is also

a shared ideology and compatibility of ideas which help to resolve

conflict by framing rules

The network or web of rules


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Unitary approach

The organisation is, or should be, an integrated group of

people with a single authority/loyalty structure and a set

of common values, interests and objectives shared by all

members of the organisation.

y Management's prerogative (i.e. its right to manage and

make decisions) is regarded as legitimate, rational and

Accepted

y

Opposition to it (whether formal or informal, internal orexternal) is seen as irrational

y In short:

y the organisational system is in harmony

y conflict is unnecessary and exceptional


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Pluralist approach

Based on assumption that organization is composed of individualswho make up distinct sectional groups , each with its own

interests , objectives and leadership.

Recognition of diverging interests between workers, employers

and government

Conflict is the total range of behaviour and

attitudes that express opposition and divergent orientation and it

is perceived as both rational and inevitable.

But focus is on framework of regulating work

relationships-balance of power between management and trade

unions

Conflict is necessary ,but it can be and needs to be managed and

resolved


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Marxist Approach If shared ideology than why is that conflict never ceases.

Conflicts can never cease until capital accepts that labor

has right to an equal share in power.

Production system is privately owned and is motivated by

profit.

IR is the study of processes of control over work relations,

Its about who controls , how , what and why.


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So long as 60% of the workforce is in

agriculture and contributes to 25% of the

GDP , the lot of the workforce in agriculture

cannot and will not improve. Discuss thestrategies to deal with the issue?

overview of ir

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