Unit - I

INTRODUCTION
Industrial relations has become one of the most delicate and complex problems of modern
industrial society. Industrial progress is impossible without cooperation of labours and harmonious
relationships. Therefore, it is in the interest of all to create and maintain good relations between employees
(labour) and employers (management).
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 explain 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.
The term industrial relations have a broad as well as a narrow outlook. Originally, industrial
relations were broadly defined to include the relationships and interactions between employers and
employees. From this perspective, industrial relations covers all aspects of the employment relationship,
including human resource management, employee relations, and union-management (or labour) relations.
Now its meaning has become more specific and restricted. Accordingly, industrial relations pertains to the
study and practice of collective bargaining, trade unionism, and labour-management relations, while
human resource management is a separate, largely distinct field that deals with nonunion employment
relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the relationships
between individual workers, the relationships between workers and their employer, the relationships
between employers, the relationships employers and workers have with the organizations formed to
promote their respective interests, and the relations between those organizations, at all levels. Industrial
Relations also includes the processes through which these relationships are expressed (such as, collective
bargaining, workers’ participation in decision-making, and grievance and dispute settlement), and the
management of conflict between employers, workers and trade unions, when it arises.
MEANING AND DEFINITION OF INDUSTRIAL RELATION
The relationship between Employer and employee or trade unions is called Industrial Relation.
Harmonious relationship is necessary for both employers and employees to safeguard the interests of the
both the parties of the production. In order to maintain good relationship with the employees, the main
functions of every organization should avoid any dispute with them or settle it as early as possible so as to
ensure industrial peace and higher productivity. Personnel management is mainly concerned with the
human relation in industry because the main theme of personnel management is to get the work done by
the human power and it fails in its objectives if good industrial relation is maintained. In other words good
Industrial Relation means industrial peace which is necessary for better and higher productions.
Other commonly referred definitions:

i. Industrial Relation is that part of management which is concerned with the manpower of the enterprise –
whether machine operator, skilled worker or manager.
ii. Industrial Relation is a relation between employer and employees, employees and employees and
employees and trade unions. - Industrial dispute Act 1947
iii. While moving from jungle of the definitions, here, Industrial Relation is viewed as the “process by
which people and their organizations interact at the place of work to Establish the terms and conditions of
employment.”
The Industrial Relation relations also called as labor - management, employee-employers relations.
A few notable features pertaining to Industrial Relations are as under:

1. Industrial Relation do not emerge in vacuum they are born of employment relationship in an industrial
setting. Without the existence of the two parties, i.e., labour and management, this relationship cannot
exist. It is the industry, which provides the environment for industrial relations.
2. Industrial Relation are characterized by both conflict and co-operations. This is the basis of adverse
relationship. So the focus of Industrial Relations in on the study of the attitudes, relationships, practices
and procedure developed by the contending parties to resolve or at least minimize conflicts.
3. As the labor and management do not operate in isolations but are parts of large system, so the study of
Industrial Relation also includes vital environment issues like technology of the workplace, country’s
socio-economic and political environment, nation’s labor policy, attitude of trade unions workers and
employers.
4. Industrial Relation also involve the study of conditions conductive to the labor, managements co-
operations as well as the practices and procedures required to elicit the desired co-operation from both the
parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of courts, customs and
traditions, as well as policy framework laid down by the governments for eliciting co-operations between
labor and management. Besides this, it makes an in-depth analysis of the interference patterns of the
executive and judiciary in the regulations of labor–managements relations. In fact the concepts of
Industrial Relations are very broad-based, drawing heavily from a variety of discipline like social
sciences, humanities, behavioral sciences, laws etc.
Industrial Relation encompasses all such factors that influence behavior of people at work. A few
such important factors are details below:
1. Institution: It includes government, employers, trade unions, unions’ federations or associations,
government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on
the industrial relations systems.
2. Characters : It aims to study the role of workers unions and employers’ federations officials, shop
stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court,
tribunal etc.
3. Methods : Focus on collective bargaining, workers’ participation in the Industrial Relation schemes,
discipline procedure, grievance re-dressal machinery, dispute settlements machinery working of closed
shops, union reorganization, organizations of protests through methods like revisions of existing rules,
regulations, policies, procedures, hearing of labor courts, tribunals etc.
4. Contents : Includes matter pertaining to employment conditions like pay, hours of works, leave with
wages, health, and safety disciplinary actions, lay-off, dismissals retirements etc., laws relating to such
activities, regulations governing labor welfare, social security, industrial relations, issues concerning with
workers’ participation in management, collective bargaining, etc.,
Objectives of Industrial Relation:
A. To safeguard the interest of labor and management by securing the highest level of mutual
understanding and good-will among all those sections in the industry which participate in the process of
production.
B. To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in
the productivity of workers and the industrial progress of a country.
C. To raise productivity to a higher level in an era of full employment by lessening the tendency to high
turnover and frequency absenteeism.
D. To establish and nurse the growth of an Industrial Democracy based on labor partnership in the sharing
of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the
benefit of the industry and of the country as well.
E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by providing reasonable
wages, improved living and working conditions, said fringe benefits.
F. To establish government control of such plants and units as are running at a loss or in which
productions has to be regulated in the public interest.
G. Improvements in the economic conditions of workers in the existing state of industrial managements
and political government.
H. Control exercised by the state over industrial undertaking with a view to regulating production and
promoting harmonious industrial relations.
I. Socializations or rationalization of industries by making the state itself a major employer
J. Vesting of a proprietary interest of the workers in the industries in which they are employed.
The main aspects of Industrial Relations are:-

i. Labor Relations, i.e. relations between union and management
ii. Employer-employees relations, i.e. relations between management and employees
iii. Group relations, i.e. relations between various groups of workmen
iv. Community or Public relations, i.e. relations between industry and society.
v. Promotions and development of healthy labor-managements relations.
vi. Maintenance of industrial peace and avoidance of industrial strife
vii. Development of true industrial Democracy.
IMPORTANCE OF INDUSTRIAL RELATIONS:
The healthy industrial relations are key to the progress. Their significance may be
discussed as under –
1. 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.
2. Reduction in Industrial Disputes
Good industrial relation reduces the industrial disputes. Disputes are reflections of the
failure of basic human urges or motivations to secure adequate satisfaction or expression
which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics,
gherao and grievances are some of the reflections of industrial unrest which do not
spring up in an atmosphere of industrial peace. It helps promoting co-operation and
increasing production.
3. 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 coowner
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.
4. Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the part of
both. It is the business of leadership in the ranks of workers, employees and Government
to work out a new relationship in consonance with a spirit of true democracy. Both
should think themselves as partners of the industry and the role of workers in such a
partnership should be recognized. On the other hand, workers must recognize
employer’s authority. It will naturally have impact on production because they recognize
the interest of each other.
5. New Programmes
New programmes for workers development are introduced in an atmosphere of peace
such as training facilities, labor welfare facilities etc. It increases the efficiency of
workers resulting in higher and better production at lower costs.
6. 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.
Thus, from the above discussion, it is evident that good industrial relation is the basis
of higher production with minimum cost and higher profits. It also results in increased
efficiency of workers. New and new projects may be introduced for the welfare of the
workers and to promote the morale of the people at work.
An economy organized for planned production and distribution, aiming at the realization
of social justice and welfare of the massage can function effectively only in an atmosphere
of industrial peace. If the twin objectives of rapid national development and increased
social justice are to be achieved, there must be harmonious relationship between management
and labor.

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INTRODUCTION

CONCEPT OF INDUSTRIAL RELATIONS

MEANING AND DEFINITION OF INDUSTRIAL RELATION

Other commonly referred definitions:

A few notable features pertaining to Industrial Relations are as under:

I. Socializations or rationalization of industries by making the state itself a major employer

The main aspects of Industrial Relations are:-

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