INDUSTRIAL RELATIONS

Concept of Industrial Relations: The term Industrial Relations comprises of two terms: Industry and Relations. Industry refers to any productive activity in which an individual (or a group of individuals) is (are) engaged. By relations we mean the relationships that exist within the industry between the employer and his workmen. The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organizational settings. The field of industrial relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Industrial relations are basically the interactions between employers, employees and the government, and the institutions and associations through which such interactions are mediated. DEFINITION V.Agnihotri defines the term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. According to ILO (International Labour Organization), IR deals with either the relationship between the state on one hand and employers and workers organizations or the relation between the occupational organizations themselves. IR is viewed as a process by which people and their organizations interact at the place of work to establish the terms and conditions of employment.

NATURE OR FEATURES OF INDUSTRIAL RELATIONS: 1. Industrial relations are the relations, which are the outcome of the employment relationship in an industrial enterprise. Without the existence of two parties, the employer and the workmen such relationship cannot exist. 2. This relationship emphasises on the process of accommodations whereby the parties involved develop skills and methods of adjusting to and cooperating with each other. 3. IR does not operate in vaccum or in isolation. They are part and parcel of a larger system which has an effect on the industrial relations. Therefore, one needs to understand the
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environmental effects to study the IR in the total context. Eg. Demographic, economic, competitors, technological, social, political etc. 4. The government/State evolves, influences and shapes industrial relations with the help of laws, rules, agreements, awards of the courts, and emphasis on usages, customs, traditions, implementations of its policies and interference through executive and judicial machinery. 5. The important factors of industrial relations are: employees and their organisations, employer and their associations and Government. . ACTORS OF INDUSTRIAL RELATIONS WORKERS AND THEIR ORGANISATIONS: The total worker plays an important role in industrial relations. The total worker includes working age, educational background, family background, psychological factors, social factors, culture, skills, attitudes towards others work etc. Workers organisations prominently known as trade unions have a main purpose of protecting workers economic interest through collective bargaining and by bringing pressure on management through economic and political tactics. EMPLOYERS AND THEIR ORGANISATIONS: Employer is one who employs the worker, pays the wages and various allowances, regulates the working relations through various rules, regulations and by enforcing labour laws. He expects workers to contribute their resources to the maximum. The difference between the demands of worker and employer results in industrial conflicts. Employers form their organisations to equate their bargaining power with that of trade unions. GOVERNMENT: Government plays a balancing role as a custodian of the nation. Government exerts its influence on industrial relations through its labour policy, industrial relations policy, implementing labour laws, the process of conciliation and adjudication by playing the role of a mediator etc. it tries to regulate the activities and behaviour of both employees organisations and employers organsations.

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SIGNIFICANCE OF IR: Uninterrupted production The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. High morale Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results. Reduced Wastage Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. It contributes to economic growth and development: Good industrial relations lead to increased efficiency and hence higher productivity and income. This will result in economic development of the economy. It facilitates change: Good industrial relations help in improvement of cooperation, team work, performance and productivity and hence in taking full advantages of modern inventions, innovations and other scientific and technological advances. It helps the work force to adjust themselves to change easily and quickly

OBJECTIVES OF INDUSTRIAL RELATIONS To bring better understanding and cooperation between employers and workers. To avoid industrial conflicts and to maintain harmonious relations.
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To safeguard the interest of workers and the management. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits. To enhance the economic status of workers by improving wages, benefits etc. To provide an opportunity to the workers to have a say in the management and decision making. To make positive contributions for the economic development of the country.

SCOPE OF IR:

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Relationship among employees, between employees and their superiors or managers

Collective relations between trade unions and management. It is called UnionManagement relations.

Scope of IR
Collective relations among trade unions, employers associations and government.

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