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CH 1

Industrial relations involves the complex relationships between employees, employers, and the government. It aims to create cooperation and harmony between workers and management. The field looks at how management and worker groups, often represented by unions, interact. Maintaining sound industrial relations requires balancing the interests of management, employees, and the state through cooperative and harmonious relationships.

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46 views15 pages

CH 1

Industrial relations involves the complex relationships between employees, employers, and the government. It aims to create cooperation and harmony between workers and management. The field looks at how management and worker groups, often represented by unions, interact. Maintaining sound industrial relations requires balancing the interests of management, employees, and the state through cooperative and harmonious relationships.

Uploaded by

mahbobullah rahmani
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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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Industrial Relations

Industrial relations has become one of the


most delicate and complex problems of
modern industrial society. Industrial progress
is impossible without cooperation of labors
and harmonious relationships. Therefore, it is
in the interest of all to create and maintain
good relations between employees (labor)
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 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 Relation 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.
A sound industrial relations system is one in which
relationships between management and employees
on the one hand, and between them and the State
on the other, are more harmonious and cooperative.
Related Terms
Industry:
Industrial Disputes Act 1947 defines an
industry as any systematic activity carried on
by co-operation between an employer and his
workmen for the production, supply or
distribution of goods or services with a view to
satisfy human wants or wishes whether or not
any capital has been invested for the purpose
of carrying on such activity; or such activity is
carried on with a motive to make any gain or
profit.
Employer:
An employer can be defined from different
perspectives as:-
a person or business that pays a wage or
fixed payment to other person(s) in exchange
for the services of such persons.
a person who directly engages a
worker/employee in employment.
any person who employs, whether directly or
through another person or agency, one or
more employees in any scheduled
employment in respect of which minimum
rates of wages have been fixed.
Employee:

Employee is a person who is hired by another person or


business for a wage or fixed payment in exchange for
personal services and who does not provide the services
as part of an independent business.
An employee is any individual employed by an employer.
A person who works for a public or private employer and
receives remuneration in wages or salary by his
employer while working on a commission basis, piece-
rates or time rate.
Employee, as per Employee State Insurance Act 1948,
is any person employed for wages in or in connection
with work of a factory or establishment to which the act
applies.
Employment:
The state of being employed or having a job.
Labor market:
The market in which workers compete for
jobs and employers compete for workers. It
acts as the external source from which
organizations attract employees. These
markets occur because different conditions
characterize different geographical areas,
industries, occupations, and professions at
any given time.
 
Actors in the IR system:

Three main parties are directly involved in


industrial relations:
Employers: Employers possess certain rights
They have the right to hire and fire labors.
Management can also affect workers’ interests by
exercising their right to relocate, close or merge
the factory or to introduce technological changes.
Government: The central and state government
influences and regulates industrial relations
through laws, rules, agreements, awards of
court .It also includes third parties and labor and
tribunal courts.
Employees: Workers seek to improve the
terms and conditions of their employment.
They exchange views with management and
voice their grievances. They also want to
share decision making powers of
management. Workers generally unite to form
unions against the management and get
support from these unions.
Scope of Industrial Relation:
Industrial relations include the relationship
between an employee and an employer in the
course of the running of an industry and may
project it to spheres, which may transgress to
the areas of quality control, marketing, price
fixation and disposition of profits among others.
#Collective bargaining
#Machinery for settlement of industrial disputes
#Standing orders
#Workers participation in management
#Unfair labor practices
Objectives/Significance of IR
#Uninterrupted production
#Reduction in Industrial Disputes
#High morale
#Mental Revolution
#Reduced Wastage
#To safe guard interests of labour and
management by securing the highest level of
mutual understanding amongst the people in
the organization.
#To improve the economic conditions of
workers in the existing state of industrial
managements and political government.
#To eliminate or minimize the number of
strikes, lockouts and gheraos by providing
reasonable wages, improved living and
working conditions, said fringe benefits.
# To extend and maintain industrial
democracy.
# To encourage and develop trade unions in
order to improve the workers strength.
Approaches to IR
 Psychological Approach
 Sociological Approach
 HR Approach
 Gandhian Approach
 IR Approach
 Socio Ethical Approach

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