• EMPLOYEE RELATIONSHIP MANAGEMENT

• Employee Relations: Meaning & Characteristics

• Parties to Industrial relations
• Theoretical Perspectives on Industrial Relations
• Nature of Trade Unions – Types of trade unions
• Reasons for joining TU Problems of Trade Union Causes for Industrial Disputes
• Grievance Procedures
• Redressal of Grievances through Collective Bargaining Features
• Workers participation in management
• Laws relating to Employee Relations.

Definition
• According to Dunlop, “IR is the complex of inter – relations among workers,
managers, and government.”
• According to Dale Yoder, “IR is a relationship between management and employees
or among employees and their organizations that help both the organization and the
employees to grow.”
Nature
• According to Dunlop, “IR is the complex of inter – relations among workers,
managers, and government.”
• According to Dale Yoder, “IR is a relationship between management and employees
or among employees and their organizations that help both the organization and the
employees to grow.”
Objectives
• Complex Relationship
• Mixture of Cooperation and Conflicts
• Participative in nature
• Dispute settlement
• Trade unions
• Collective Bargaining
• Grievance Redressal
Nature of RE/ IR
• Protect workers and Management’s interest
• Improves economic status of workers
• Regulates control of government
• Ensure workers participation
• Develop and support labor unions
• Prevent industrial conflict
• Reduce strikes and lockouts
• Increases productivity
Actors
• Worker and their organization
• Employee and their organization
• Government
• Trade unions
• Employers
• Court and tribunals
Determinants
• The difference of opinion between the workers and the management
• The management’s attitude towards workers and the union and vice-versa
• The workers’ attitude towards the unions
• The dominance of one union over the others
• The grievance handling procedures
• The effectiveness of the concerned managers in handling workplace disputes
• The prosperity of the organisation and the availability of employment opportunities
within
• Measures for preserving and ensuring healthy relations between employees and the
employer
• Mechanism to investigate and resolve industrial disputes
• Mechanism to provide adequate representation to the union/employees
• Avoidance of strikes and lockouts by all concerned parties
• Participation of employees in collective bargaining
• The context and nature of the industry
Approaches / Perspective
• Psychological Approach
• Sociological Approach
• Human Relations Approach
• Systems Approach
• Dunlop’s Approach
• Oxford Approach
• Industrial Sociology Approach
• Action Theory Approach
• Weber’s Social Action Approach
• Gandhian Approach
Unitarist Perspective : In unitarism, the organization is perceived as an integrated and
harmonious whole with the ideal of "one happy family", where management and other
members of the staff all share a common purpose, emphasizing mutual cooperation.
Furthermore, unitarism has a paternalistic approach where it demands loyalty of all
employees, being predominantly managerial in its emphasis and application.
• Consequently, trade unions are deemed as unnecessary since the loyalty between
employees and organizations are considered mutually exclusive, where there can't
be two sides of industry.

Pluralist perspective

• In pluralism, the organization is perceived as being made up of powerful and

divergent sub-groups, each with its own legitimate loyalties and with their own set
of objectives and leaders. In particular, the two predominant sub-groups in the
pluralist perspective are the management and trade unions.
• Consequently, the role of management would lean less towards enforcing and
controlling and more toward persuasion and co-ordination. Trade unions are
deemed as legitimate representatives of employees, conflict is dealt by collective
bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact
be channelled towards evolution and positive change.
Radical Perspective
• This is also known as Marxist Approach
• It considers that capitalist economy and society are the cause of inequality of wealth
and power.
• It sees the conflict as inevitable and trade unions as response mechanism to deal
with the exploitation of workers by capital
DUNLOP’S APPROACH
Dunlop defines an industrial relations system in the following way:
An industrial relations system at any one time in its development is regarded as
comprised of certain actors, certain contexts, an ideology, which binds the industrial
relations system together, and a body of rules created to govern the actors at the workplace
and work community.
For Example :
Manufacturing industry has a different context than the Fashion Industry
The market may be highly competitive or monopolistic.

• Oxford Approach
• Oxford Approach is promoted by Flandars.
• Business is a social system with a structure of relationships
• The industrial relations field is a study of institutions of job regulations such as work
rules, wages structure, grievance procedures and trade unions.
• formula
• r=f(b), or r= f(c)
• r= rules governing industrial relation
• b= collective bargaining
• c= conflict resolved through collective bargaining.
• This Approach focusses on political process of collective bargaining and side line
aspects such as technology, market and ideology.
•
THE INDUSTRIAL SOCIOLOGY APPROACH
• G. Margerison, an industrial sociologist, holds the view that the core of industrial
relations is the nature and development of the conflict itself.
• He proposed the cause of conflicts more thoroughly than their solution.
• According to him industrial relations occur in 2 situations
• A. within a plant: job content, technology, interaction- create three types of
conflicts- structural, distributive and human relations oriented.
• B. it includes conflicts that are not resolved within organisation
the ACTION THEORY APPROACH
• The action theory approach takes the collective regulation of industrial labour as its
focal point. The actors operate within a framework, which can at best be described
as a coalition relationship.
THE HUMAN RELATIONS APPROACH
• In the words of Keith Davies, human relations are “the integration of people into a
work situation that motivates them to work together productively, cooperatively and
with economic, psychological and social satisfactions.” According to him, the goals of
human relations are:
• (a) to get people to produce
 • (b) to cooperate through mutuality of interest
• (c) to gain satisfaction from their relationships.
WEBER’S SOCIAL ACTION APPROACHTHE
1. This Approach emphasises on the power to control the context of bureaucratic
environment and work organisations.
2. It analyses the effect of politico-organisational and techno-economic changes on the
structure and process of trade union, the subjective interpretation of workers’
approach to trade union, and power of the employers, government, political parties
and unions.
THE GANDHIAN APPROACH
• Workers should seek rebred of just and reasonable demands through collective
actions.
• Trade unions should decide to go on strike taking ballot authority from all workers,
and remain peaceful using non violent methods.
• Workers should avoid strikes to the extent possible.
• Strikes are to be the last resort
• Workers should take recourse to voluntary arbitration where direct settlement fails.

• Factors influencing Employee Relations/IR

PESTLE

Importance of Employee Relations/IR

• Minimizes industrial conflict
• Increases workers morale
• Provides fair benefits to workers
• Helps in facilitation of changes
• Collective Bargaining
• Mental resolution
• Worker development
• Reduces wastage
• Smooth production

Role of Government in Employee Relations/IR

• Improves Standard of Living
• Promotes industrial growth
• Acts as a empire
• Protect interest of labor
• Dispute settlement

Causes of poor Industrial Relations

Economic causes:
• poor wages
• poor working conditions
• unhealthy relations between management and labour.
• Unauthorised deductions from wages
 • lack of fringe benefits
• absence of promotion opportunities
• faulty incentive schemes
• inadequate infrastructure
• worn-out plant
• machinery
ganisational causes:
• Faulty communications system
• unfair practices
• non-recognition of trade unions
• labour laws
• Lethargic Management and workforce
• Lack of human relations skills
• Heavy workload
• Inter-union rivalry

Causes create poor industrial relation results in

• High Absenteeism
• Low Quality of Production
• Negligence
• Economic Loss
• Possible Damage to Machinery
• Adverse Effect on Relationship
• Accidents
• High Attrition
Remedies or Measures to improve Employee Relations/IR
• Support from top management
• Strong and stable unions
• Providing training
• Worker participation
• Feeling of trust
• Proper implementation of agreements
• Sound HR policies
• Government role
• Follow up of results
 • Definition of Trade Unions

• Definition of Trade Unions

• According to Flippo, “A Trade Unions is a worker’s organization which is established
by their collective activities to the welfare of the members in social, economical and
potential interests and to keep them secured and for improvement in it”.
• According to Lester, “A Trade Unions is an association of employees designed,
primarily to maintain and improve the condition of employment of its members.”

Features of Trade Unions

• Voluntary association
• Community of interests
• Having authority flow from members
• Dealing with collective actions
• Acting as an intermediary
• Have greater bargaining power
• Minimizes discrimination
• Sense of participation
• Betterment of relationships
• Platform for self- expression
• Sense of security
Objectives of Trade Unions
• Providing income security
• Maintaining job security
• Preserving physical security
• Providing social security
• Providing emotional security
• Fostering industrial democracy and equity

Functions of Trade Unions

• Achieve higher wages and better working conditions
• Raise the status of the workers
• Protect labor from injustice
• Take up welfare measures for improving the morale of the workers
• Generate self-confidence
• Encourage sincerity and discipline
• Provide opportunities for promotion and growth
• Protect women workers against discrimination
• Influence government policy in favor of workers
Functions of Trade Unions
• Welfare activities such as housing, mutual funds, cooperative societies, cooperative
stores, cultural programs, banking, medical facilities, training for women etc.
• Education so as to increase awareness
• Publish newsletters, magazines to clarify the policies regarding different issues.
• Conduct research to solve practical problems about day to day affairs.
Structures of Trade Unions
• Union classified according to purpose
Reformist union
Business union
Friendly union
Revolutionary union
Political union
Anarchist union
Hold-up union
Guerrilla union
Dependent union
Structures of Trade Unions
• Union classified on the basis of membership structure
Craft union (horizontal, any Industry)
General union (Any Industry)
Industrial union (Verticle – same Industry)
Staff union(craft and Industry)
Methods of Trade Unions
• Mutual Insurance (working conditions)
• Collective bargaining (both E will decide)
• Legal enactment (Represent to legislatures)
• Strikes
• Withdrawal of work
• Coercive method

Relevance of Trade Unions

• Protect worker
• Create spirit of self reliance and self respect among workers
• Negotiate among workers and employers
• Maintenance of wages
• Help of accelerate economic growth
Problems of Trade Unions
• Outside political leadership
• Multiple unions
• Inter union rivalry
• Intra union rivalry
• Small size of union membership
• Poor financial positions
• Inactive functioning
Measures to strengthen Trade Unions Movement in India
• Micro to macro focus
• Bargaining to sharing
• Grooming trade union leadership
• Conflict to collaboration
• Developmental role
• Enhancing union influence
• Protective regulation
• Openness and transparency
• Effective utilization of different forums
 • Accept (flexible working practices), Share (management of company), Grow (as a
partner)

Industrial disputes
• Industrial disputes are the differences between the employers and workers in an
industry and can take various forms of protest like strikes, gheraos, and
demonstration.
• These disputes can be from the workers’ side, such as retrenchment, dismissal, and
lockouts, or can be from the employer’s side.
• Whatever the source, the outcome of the protest is always loss of industrial
production and decline in the national income.
• Hence, it is essential to understand the nature and magnitude of industrial disputes
and know the factors responsible for their occurrence and measures to resolve
them.
Two types of industrial disputes:
• Interest Disputes: These disputes are also known as economic disputes. These
disputes arise due to terms and conditions of employment. They could be either out
of the claims made by the employees or offers given by the employers. These
disputes are settled by a collective agreement.
• Grievance or Rights Disputes: These disputes arise out of application or
interpretation of existing agreements or contracts between the employees and the
management. Such disputes are also called individual disputes, as they relate either
to an individual worker or a group of workers in the same group.

The nature of an industrial dispute depends on the following principles:

• The dispute must affect a large number of workmen who have a community of
interest, and the rights of these workmen must be affected as a class.
• The industry union or a substantial number of workmen must take up the dispute.
• The grievance can take the shape from an individual complaint to a general
complaint.
• The nexus between the union and the dispute must be visible.
• A workman has a right to raise an industrial dispute with respect to termination,
discharge, dismissal, or retrenchment of his/her service according to the guidelines
set in Section 2A of the Industrial Disputes Act, 1947.
Disputes Act, 1947

• An industrial dispute is settled according to the Industrial Disputes Act, 1947. In

common parlance, a dispute means a difference or a disagreement over some issues
between the parties.
• In general, industrial disputes relate mainly to the difference between the workmen
and the employers.
• The term ‘grievance’ is different from the term ‘dispute’. A grievance is directed
towards an individual, whereas a dispute focuses on collectivity of individuals.
 • In other words, an industrial dispute considers the interest of all or majority of
workmen involved in it.

Causes of Industrial Disputes

• Close Mindedness of Employers and Employees: This is a major cause of such

disputes. The employer wants to get maximum work with minimum remuneration,
while the employee wants to be paid more for less work.
• Non-Acceptance of Wage, Wage System, and Structure: The employees might
refuse to accept the prevalent, non-rational wage, wage system, and structure.
• Unhealthy Working Environment, Lack of Safety Measures, and Unhygienic
Conditions: All these conditions result in a non-conducive work environment.
• Unfair Perspective of the Management: The employees may look upon their
management personnel as people with poor human relations.
• No Control over Indiscipline: If the management is not able to resolve the issues of
indiscipline in the workplace, it yields to problems.
• Abrupt Changes: If the management introduces new technology without proper
consultations, preparations, and discussion with workers, it creates problems with
the staff.
• Unequal Distribution: If the workload, wage, and responsibilities of the workers are
unfairly distributed, then it is a cause of disputes.
• Unfair Perspective of the Management: The employees may look upon their
management personnel as people with poor human relations.
• No Control over Indiscipline: If the management is not able to resolve the issues of
indiscipline in the workplace, it yields to problems.
• Abrupt Changes: If the management introduces new technology without proper
consultations, preparations, and discussion with workers, it creates problems with
the staff.
• Unequal Distribution: If the workload, wage, and responsibilities of the workers are
unfairly distributed, then it is a cause of disputes.
• AmonAcceptance of trade unions by the employers
• Representation conflict between rival unions
• Insult to the leadership of the trade union by the employer
• Introduction of rationalisation in the factory
• Strikes called due to fear of retrenchment
• Strikes called due to sympathy with fellow employees in other establishments
• General discontent due to the working environment
• Sense of frustration among labourers
• Political issues
STRIKE
• A strike is quitting of work by a group of workers to force the employer to accept
their demands. It is a powerful tool used by the trade unions to pressurise the
management to accept their demands.
• Economic Strike: A strike that is concerned with an economic reason, such as wages,
bonus, or working conditions.
• General Strike: A strike of all the unions in a region or workers of a particular
industry for the common demands of the workers concerned.
• Sit Down Strike: In this strike, workers stop doing work but do not leave the place of
work. It is also known as the tool down or pen down strike.
• Slow Down strike: In this strike, workers remain on their jobs but slow down the
output of their work.
• Primary Strikes: These strikes are aimed against an employer as a result of a dispute
with the employer. These strikes may include the following forms:
• Stay away strike
• Stay-in strike
• Sit-down strike
• Pen-down strike
• Tools-down strike
• Go-slow strike
• Work-to-rule strike
• Token or protest strike
• Cat-call strike
• Picketing or boycott
• Secondary Strikes: These strikes are also known as sympathy strikes. In these strikes,
workers are not directly involved. They resort to a strike to pressurise the employer
with whom their fellow workers have a dispute.
Lockout

• A lockout is stoppage of work where the employer prevents employees from

working. The purpose of a lockout is to pressurise the workers or a union by reducing
the members who are able to work. A lockout is the opposite of a strike, as here the
employer prevents employees from working instead of the other way round.
Therefore, a lockout is treated as a weapon of employers, while a strike is raised on
part of employees.
• There are several reasons for lockouts. Some examples are as follows: A group of
workers strike to make it impossible for the rest of the workers to work or make
them less productive. This forces the employer to declare a lockout until the workers
end the strike.
• An employer can call a lockout to avoid slowdowns or intermittent work stoppage.
The most common method to oppose a lockout is the occupation of factories by the
workers.
• According to the Industrial Disputes Act, 1947, a lockout by an employer is declared
when the employer:
• Temporarily closes a place of employment
• Suspends work
• Refuses to continue to employ any number of persons employed by him/her
• A lockout is stoppage of work where the employer prevents employees from
working. The purpose of a lockout is to pressurise the workers or a union by reducing
the members who are able to work. A lockout is the opposite of a strike, as here the
employer prevents employees from working instead of the other way round.
Therefore, a lockout is treated as a weapon of employers, while a strike is raised on
part of employees.
 • There are several reasons for lockouts. Some examples are as follows: A group of
workers strike to make it impossible for the rest of the workers to work or make
them less productive. This forces the employer to declare a lockout until the workers
end the strike.
• An employer can call a lockout to avoid slowdowns or intermittent work stoppage.
The most common method to oppose a lockout is the occupation of factories by the
workers.
Gherao
• Gherao is a Hindi word, which means to surround.
• It refers to a collective action initiated by a group of workers who do not allow
members of the management to leave the premises of an industrial establishment.
• The workers prohibit the movement of the management by blocking the exit gates
and/or forming human barricades.
• In this way, the management members are forced to stay inside their cabins.
• The objective of gherao is to inflict physical and mental torture to the person being
gheraoed. This is done by surrounding managers and preventing their physical
movement. A gherao is not restricted to within the premises; it can take place
outside the organisational premises too, where the workers prevent
managers/gheraoed persons from moving for a long period.
• In normal cases, the gherao is not inhuman. However, it is cruel and inhuman if
people are forcibly confined in a small place without electricity, food, and water for a
long period. The situation is worsened if the confined persons are humiliated and
abused, and are not even allowed to answer “calls of nature”.
• The motive of the workers resorting to gherao is to compel the gheraoed persons to
accept their demands without recourse to the machinery provided by law. Due to its
underlying objective, the National Commission on Labour has refused to accept
gherao as a form of industrial protest. The reason behind its non-acceptance is that
it tends to inflict physical duress (as against economic pressure) on the persons
gheraoed. It not only endangers industrial harmony, but also creates problems of
law and order.
• Under Section 339 or 340 of the IPC, workers, if found guilty of wrongfully
restraining any person or wrongfully confining him/her during a gherao, are liable to
be arrested without a warrant and punishable with a simple imprisonment for a
term, which may be extended to 1 month, or with a fine up to INR 500, or with both.
Picketing and Boycott
• Picketing is perfectly legal if it does not involve any violence.
• Workers who are on strike and are not allowed to enter gates of the workplace are
known as pickets.
• They stand at the entrance of their workplace and in a way draw public attention
towards a dispute between the management and employees.
• The objectives of picketing are:
• To stop or persuade workers not to go to work
• To tell the public about the strike
• To persuade workers to take their union's side
• Picketing is considered to be a method that has been especially designed to request
workers to withdraw co¬operation to the employer. Workers display signs, banners,
and play cards at the entrance gates of their workplace and try to draw the attention
 of the public to their dispute with the employer. The picketing workers prevent their
colleagues from entering the place of work and persuade them to join the strike.
• Boycott, on the other hand, aims at disrupting the normal functioning of the
organisation. The striking workers appeal to others for voluntary withdrawal of
cooperation with the employer. Instances of boycotting classes and examinations
are seen in the universities also.
Prevention of Industrial Disputes
• Strengthen trade unions democratically to align with the mainstream national
industrial activities.
• Encourage more transparency among employers in their dealings with workers to
build confidence and have progressive outlook.
• Foster open-minded flexible collective bargaining.
• Allow workers to participate in the management through forums, committees, and
councils.
• Encourage sound labour policy and planning.

• Authorities for Settlement of Industrial Disputes

Industrial Disputes Act provides for the following authorities for Investigation and
Settlement of industrial disputes:
• Works Committee
• Conciliation Officer
• Boards of Conciliation
• Court of Inquiry
• Labour Court
• Labour Tribunals
• National Tribunals
Employee Grievance
• According to Keith Davis, “Employee Grievance is a real feeling of personal injustice
which an employee has, concerning his employment relationship”.
• According to Dale Yoder, “Employee Grievance is written complaint filed by an
employee and claiming unfair treatment”.
CAUSES
• Management style
• Social distance
• Implementation of personnel policies
• Communication gap
• Supervisory practices
• Employee attitude
• Health problem
• Impractical expectations
• Mismatch in working condition
Identifying of Employee Grievance
• Observation
• Gripe Boxes
• Open – Door Policy
• Exit Interview
• Opinion survey
Steps of Employee Grievance
• Identification of grievances
• Define correctly
• Data collection
• Analyze and solve
• Promote redressal
• Implementation and follow-up
Workers Participation-The primary objectives of worker’s participation are as follows:
• To provide an opportunity for self-expression to the workers
• To give a sense of importance to them
• To increase their motivation through higher engagement
• To balance the power of managers
• To avoid and resolve industrial conflicts
• To help manage resistance to change at the workplace
• To open communication channels and increase transparency
• To establish democracy at the workplace

Workers Participation -Worker’s participation is based on the following aspects:

• Democratic decision-making
• Maximum collaboration between the employer and the employee
• Minimal intervention by the government
• Greater social justice
• Improved industrial efficiency
• Better organisational health
Forms of Worker’s Participation
• Suggestion Schemes
• Collective Bargaining
• Works Committee
• Joint Management Councils
• Representation on the Board
• Worker Ownership of the Business
1) Informative Participation : Allows workers to express their views on general matters.
2) Consultative Participation: Seeks the suggestions of employees on issues, such as
health and safety
3) Associative ParticipatioN: Itis the moral obligation of the management to approve and
implement the decisions taken unanimously
4) Administrative Participation: The workers involve themselves in a larger share of
implementation of managerial functions; the focus is on execution of decisions.
5) Decisive Participation : The highest level of participation in which the workers and
management jointly takes decisions on issues related to worker`s welfare and
production.
COLLECTIVE BARGAINING
The highest level of participation in which the workers and management jointly takes
decisions on issues related to worker`s welfare and production.
• Collective bargaining arises from the need for negotiations between workers and
management on several work related issues, such as wages, overtime, work hours,
health and safety, training, grievance mechanisms, and worker’s participation in
management decision-making.
• This process ensures that both the workers and the management have an equal
representation in negotiations.
• It enables a fair outcome, helps to avoid expensive labour disputes, and preserve
industrial harmony.
• Collective Bargaining is a bipartite process and does not require intervention from a
third party. The success of the negotiations depends on the give and take between
the workers and the management.
FEATURES
• Group Process: It is a group process. One group represents the employer and the
other represents the workers. They sit together and discuss issues related to the
workplace.

• Importance of Negotiations: Negotiations are important, as there is a lot of scope for

discussion and mutual give and take.

• Formal Process: It is a formal process where workplace issues are discussed to

regulate them at the workplace, organisation, state, and national levels.

• Dynamic Process: It is a dynamic process and there is give and take on both sides.
The mental perspective and approaches may change during the negotiation process.

STRUCTURE
• Single Plant or Unit Level: Here, the bargaining is conducted between the
management and the representatives of a single factory or plant.
• Multiple Plants or Organisation Level: In organisations having multiple factories, the
result of collective bargaining in one factory would influence other factories even if
they are geographically distant.
• Multiple Employers or Industry Level: This system involves workers in the same
industry, through their federal unions, and the employers in that industry.
• National Level: Here, all trade unions having a common concern conduct collective
bargaining across industries.
 OBJECTIVES
• The main objective of collective bargaining is to arrive at an agreement between the
employer and the workers. This agreement cannot force anyone to perform any
illegal activity. It can also not take away any right from any party, which is rightfully
theirs according to the Constitution.
• Collective bargaining deals with various topics including wages, welfare benefits,
working hours, promotions, and grievance processes.
BENEFITS
• A tool for social change
• A peace treaty
• A system for industrial jurisprudence
• A mechanism for structured and transparent grievance resolution
• Self-respect booster
• A tool for social change: It helps to enhance the status of workers in society and give
them a sense of dignity.
• A peace treaty: It serves as a peace treaty between the workers and the
management.
• A system for industrial jurisprudence: It helps in introducing civil rights at the
workplace.
• A mechanism for structured and transparent grievance resolution: It helps to
resolve grievances in a structured and transparent manner.
• Self-respect booster: The workers develop a sense of self-respect.
• A tool for social change: It helps to enhance the status of workers in society and give
them a sense of dignity.
• A peace treaty: It serves as a peace treaty between the workers and the
management.
• A system for industrial jurisprudence: It helps in introducing civil rights at the
workplace.
 • A mechanism for structured and transparent grievance resolution: It helps to
resolve grievances in a structured and transparent manner.
• Self-respect booster: The workers develop a sense of self-respect.
FUNCTIONING OF COLLECTIVE BARGAINING
• Preparation
• Arguing
• Signalling
• Proposal
• Packaging
• Bargaining
• Closing
• Agreement
OBSTACLES IN COLLECTIVE BARGAINING
• Collective bargaining depends on the principals of both parties.
• It is difficult to build a consensus among workers.
• Collective bargaining takes a long duration.
• The decreasing power of unions has led to a decline in the practice of collective
bargaining.
• The global economy and international competition have forced organisations to
remain agile and flexible.