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Module-6 (Role of Human Resource Development in Developing Industrial Relation)

The document discusses the role of human resource development in developing industrial relations. It notes that conflicts can arise between employers/workers over wages and conditions, and that HRD must develop strategies to build strong relations with trade unions. This includes promoting cooperation over confrontation, mutual trust, participative decision-making, and avoiding practices like victimization. The Standing Orders Act was introduced to provide uniform employment terms and minimize disputes, outlining categories of workers and employment conditions. However, increasing the threshold for standing orders from 100 to 300 workers under the new labour codes may weaken labour rights. HRD must integrate the goals of profitability and harmonious relations through training programs for managers and union leaders.

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PREJA PATEL
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109 views16 pages

Module-6 (Role of Human Resource Development in Developing Industrial Relation)

The document discusses the role of human resource development in developing industrial relations. It notes that conflicts can arise between employers/workers over wages and conditions, and that HRD must develop strategies to build strong relations with trade unions. This includes promoting cooperation over confrontation, mutual trust, participative decision-making, and avoiding practices like victimization. The Standing Orders Act was introduced to provide uniform employment terms and minimize disputes, outlining categories of workers and employment conditions. However, increasing the threshold for standing orders from 100 to 300 workers under the new labour codes may weaken labour rights. HRD must integrate the goals of profitability and harmonious relations through training programs for managers and union leaders.

Uploaded by

PREJA PATEL
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Role of Human Resource

Development in Developing
Industrial Relation- Industrial
Introduction
• Employer's and Worker's Organisations exist to
express represent and defend the interest of their
members. These interests will frequently diverge
and unless a compromise can be found that is
satisfactory to the parties and some time to the
government as well, the results may be a labour
dispute. Strike is the weapon of employees and
lockout is the counter weapon of management.
Human resource managers in the vast majority of
firms have spent most of their time and energies
to contain union power.
Cont…….
• Collective labour disputes happen in organisation
based on two reasons. The prior one is that which
based on conflicts of law, and later one is based
on conflicts of interests. Conflicts of interests are
on the wages, hours of work etc. The later is
based on collective agreements or labour laws.
The conflict of interest is more interest is rapidly
increasing in recent days because of rapid
globalization and liberalization of interests. The
changing labour laws are part of this change
process and invites greater resistance from the
labourers.
Why HRD Interventions Required?
• HRD department have to develop adequate
strategies to develop strong relation with
trade unions within the organization. Many
studies related to trade union and industrial
relation pointed out that many policies and
approaches existing in Indian organisations
are not supportive to develop a culture of
cooperation and cohesiveness between union
and management.
To develop a culture of industrial peace and harmony between management
and union organisations, following approaches should be taken into account.
1. Both management and union should concern towards customer relations and customer services.
2. Trade union should develop credibility by developing good image within the organization.
3. Management should develop better relationship with the workers and develop good image within the
organization.
4. Avoid blind confrontations and believe in rationale cooperation between members and management
within the organisation.
5. organization towards goal attainment.
6. The union and management should develop mutual trust and confidence between two parties.
7. Encourage open communication between the two parties.
8. Ensure participative decision-making.
9. Arrive at medium and long-term agreements.
10. Avoid decisions that affect employee's stability of employment.
11. Avoid practice of victimization and marginalization of employees.
12. Never manipulate rewards to deserving employees.
13. Enhance functioning of the Joint Management Committees, Quality Circles and Shop Councils.
14. Arrive at settlement of disputes through mediation than arbitration.
15. Arrive at common objective programs between two parties.
16. Ensure transparency in information sharing and communication process.
17. Give freedom to point out mistakes of each other.
18. Believe in work ethics, professional ethics and managerial ethics.
19. Encourage teamwork to reduce the gap between workers and managers within the organisation.
20. Encourage the feeling of equanimity than superior and inferior complex.
Why Standing Order Act
• In an earlier era, India didn’t really have as many
laws connected with suitable employment and
labour practices, as it does now. As a result,
workers did not have uniformity in their service
conditions as enforced by the standing orders act.
This lead to a lot of disruptions, friction and
productivity loss between these workers and their
bosses – and this was seen mostly in the industrial
undertakings involving heavy workloads and
multiple employees.
Introduction of Standing Order Act 1946 in India

• The Labour Committee 1944- 1946 was created and they


immediately spotted the key cause of issues. There was a
lack of understanding, on part of the employees, about
employment conditions. This committee maintained that the
workers had a right to know all terms and conditions related
to their work and employment.
• They even wanted a distinct central law that made it
obligatory for employers to frame and approve employment
conditions and get them enforceable by law. The Industrial
Employment (Standing Order) Act 1946 and this order act
lists out laws governing the contract as devised, duly signed
and eventually terminated by either party.
Objectives :
• To provide regular standing orders for factories, workers and the
main professional or working relationship.
• To ensure that all employees recognize their employment terms
and conditions they are expected to follow or adhere to. This is to
help minimize the exploitation of workers against their will and
knowledge.
• It also supports the promotion of industrial peace and harmony by
supporting fair industrial practices.
• It tells employers the procedure for getting standing orders
certified. If they fall under the Industrial Employment (standing
order) Act, they are expected to register themselves by giving in
five draft copies of those standing orders.
• The documents are sent to the certifying officers as appointed by
the government, such as a regional labour commissioner for
assessment.
• The assessment and final certification of those standing orders is
successful provided when they have all of the following details.
– Classification of all workers into categories like temporary, probation,
permanent, Badli worker, Apprentice, Internship etc.
– The method through which workmen are informed about holidays, working
hours.
– Shift working
– Temporary suspensions of work.
– Notice periods and other provisions regarding the termination of
employment.
– All actions and inaction that are to be treated as misconduct and
consequences for said faults.
– Grievance redressal procedure in cases of unfair treatment by the employer.
– Attendance system to be followed by all employees.
– Workmen information and records
– The process followed for obtaining an accumulation of leaves, leave
encashment
– Employment termination as issued by employer and employees and notice
thereof.
How the Standing Order Act affects Labour terms?
• The Act applies to all legal industrial establishments that have
employed 100 or more employees, as defined in Section 1 (3).
And, under Section 2 (i), the word ‘industrial establishments’
applies to all that have been listed below.
1. The Railway Industry
2. Industrial Establishments as mentioned in Section 2 (i) of
the Payment of Wages Act.
3. Factories, as defined in Section 2 (m) of the Factories Act.
4. Establishment of contractors, who employ workers for
completing the contract of a person who owns an Industrial
Establishment, as per Section 2 (e)
5. Worker as given in the Industrial Disputes Act, Section 2 (s).
According to Section 2 (i), the term worker is applied to all
manual, clerical, skilled and unskilled trades.
• It doesn’t include those people who have been employed in
administrative, supervisory or managerial capacities or those
people who are subject to the Army Act, Air Force Act, Navy
Act, prison services and police.
HRD for better IR
• What are the concerns raised over the new labour codes?
(Industrial Relations Code 2020)
• Analysts say the increase in the threshold for standing orders
will water down the labour rights for workers in small
establishments having less than 300 workers. “The increase
in the threshold for standing orders from the existing 100 to
300 is uncalled for and shows the government is very keen to
give tremendous amounts of flexibility to the employers in
terms of hiring and firing…dismissal for alleged misconduct
and retrenchment for economic reasons will be completely
possible for all the industrial establishments employing less
than 300 workers. This is complete demolition of
employment security,” XLRI professor and labour economist
KR Shyam Sundar said.
Source :
https://indianexpress.com/article/explained/govts-new-versions-of-labour-codes-key-proposals-and-
concerns6603354/#:~:text=In%20the%20Industrial%20Relations%20Code,more%20at%20present%20%E2
%80%94%20steps%20that
Conclusion
• Attitudinal change on the part of Human
Resource Managers in the policy decisions are
envisaged in this article for better integration
and development of congenial organisational
atmosphere in the organisations. The prime
objective of business is making the business
surplus not the welfare. Without making the
money the organisations cannot think about
investment of their surplus in corporate social
responsibilities
• HR managers, who develop the Corporate Human
Resource Policies, should not forget this prime
concern and try to put their great effort in
extending training programmes to the new
generation young mangers integrating the
philosophy of business surplus with harmonious
industrial relations. Training programmes to trade
union leaders are the prime requirement for
better industrial relations, in addition to the
attitudinal change.

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