Management of Industrial

Relations

DR. CHITRASEN GAUTAM

ASSISTANT PROFESSOR
IMS-MGKVP
 Syllabus

Unit-I Industrial Relations: Definition, Nature, Scope,

Objectives, Importance, Historical Evolution of
Industrial Relation in India, Parties to Industrial
Relations, Different Perspectives & Approaches, Role
of State in Industrial Relations, Role of Management &
Trade Unions, Present IR scenario in India.
Unit-II Industrial Relations & Industrial Disputes,
Reasons for Industrial Disputes & Industrial Conflicts;
IR Mechanism to prevent industrial disputes &
conflicts: Collective Bargaining, Tripartite & Bipartite
Bodies, Ethical Codes & Standing Orders.
 Contd…

Unit-III Management of Grievances, Concept and Causes of

Grievances, Grievance Redressal Machinery, Objectives of
Grievance Redressal Machinery, Salient Features of
Grievance Redressal Machinery, Employee Discipline,
Aspects & Objectives of Discipline, Types of Discipline,
Disciplinary Action.
Unit- IV Worker’s Participation in Management: Concept,
Objectives of Worker’s Participation in Management, Forms
of Workers’ Participation in India, Factors influencing
Participation, Employee Empowerment, Quality Circle,
Industrial Relations & Technological Change, Industrial
Relations & HRM.
 Concept

 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.”
 Contd…

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 term industrial relations has a broad as well as a
narrow outlook. Originally, industrial relations was
broadly defined to include the relationships and
interactions between employers and employees
Definition
Nature
Objectives
Contd…
Parties to IR
ACTORS
Evolution
 Role of State

 Labor policies
 Labor laws
 Industrial tribunals
 Wage boards
 Industrial relations policy
 Causes for poor IR

The main reasons are as follows:

 An attitude of contempt towards the workers on the part of the
management.
 Inadequate fixation of wages or improper wage structure.
 Indiscipline
 Unhealthy working conditions at the workplace.
 Lack of human relations skills on the part of supervisors and managers.
 Desire of workers for higher bonus, wages or daily allowances.
 Desire of employers to pay as little as possible to its workers.
 Dispute on sharing the gains of productivity.
 Retrenchment, dismissal and lockouts by the management.
 Strikes by the workers.
 Inter-union rivals.
 Developing HR

 Developing trust between Labor & Management

 Maintenance of Industrial Peace
 Continuous feedback & monitoring
 Professional approach
 Existence of sound, democratic TU
 Trade Unions

According to Dale Yoder define Trade union as “ A

trade union is a continuous association of wage-
earners for the purpose of maintaining or improving
the conditions of their working lives”
Trade union act 1926, primary objective of trade union
1. To regulate the relations :a, between employers ; b,
among workers ; c, between employers and workmen.
2. To impose restrictive conditions on the conduct of
any trade or business.
 Need for Trade Unions

Security of employment
Fair wages
To get a common platform
Principle of unity
 Problems of trade Union

Uneven growth (industry wise and area wise)

Small size of unions
Financial weakness
Multiplicity of unions and inter union rivalry
Leadership issues
Politization of unions
Problem of recognition of trade unions
An outdated TU law
 Industrial Dispute

Disputes mainly relate to the strife between

employers and their employees.
According to the Industrial Dispute Act,1947 sec
(2(k)), Industrial disputes mean any dispute or
difference between employers and employers, or
between employers and workmen, or between
workmen and workmen, which is connected with the
employment or non employment or terms of
employment or with the conditions of labor of any
person.
 Causes of industrial Disputes

Causes of Industrial disputes may be grouped into

four categories :
(A) Industrial Factors
(B) Managements Attitude towards workers
(C) Government Machinery ; and
(D) Other Causes
 How to settle the disputes ?

Whatever may be the cause of industrial disputes,

the consequences are harmful to all stakeholders-
management, employees, economy and the society .
For management, disputes result in loss of
production, revenue, profit, and even sickness of the
plant. Employees would be hard hit as the disputes
may lead to lockouts and consequent loss of wages
and even jobs.
Various methods are available for resolving disputes.
Most important of them are :
 Code of Discipline

 Maintain peace and order in industry.

 Promote constructive criticism at all levels of
management and employment.
 Avoid work stoppage in industry.
 Secure the settlement of disputes and grievances by a
mutually agreed procedure.
 Avoiding litigation.
 Facilitate a free growth of trade unions.
 Eliminate all forms of coercion, intimidation and
violations of rules and regulations governing industrial
relations.
 Principals of Code of Discipline

 There should be no strike or lockout without prior notice.

 No unilateral action should be taken in connection with any
industrial matter.
 Employees should not follow go slow tactic.
 No deliberate damage should be caused to a plant or
property
 Acts of violations, intimidation and coercion should not be
resorted
 The existing machinery for the settlement of disputes should
be utilized.
 Actions that disturb cordial relationships should be avoided.
 Collective Bargaining

According to ILO, Collective bargaining defined as

negotiations about working conditions and terms of
employment between an employer and a group of
employer or more employers’ organization on one
hand, one or more representatives of workers
organization on another hand to reach agreement.
 Objectives of Collective Bargaining

To establish and build union recognition as an

authority in the work place
To raise workers standard of living
Industrial peace and harmony; democratic way
Settling of disputes
 Defending and promoting worker’s interest
 Grievance Procedure

 Grievance is any discontent or dissatisfaction, arising out of

employment relationship, which an employee thinks , believes or
feels to be unfair, unjust or inequitable.
 A grievance procedure is a formal process which is preliminary
to arbitration, which enables the parties involved to attempt to
resolve their differences in a peaceful and orderly manner.
 It enables the company and the trade union to investigate and
discuss the problem at issue without in any way interrupting the
peaceful conduct of business.
When the grievance redressal machinery works effectively, it
satisfactorily resolve most of the disputes between labor and
management.
 Arbitration

 Arbitration is a procedure in which a neutral third

party studies the bargaining situation, listens to both
the parties, gathers information and then makes
recommendations that are binding on both the parties.
 Arbitration is effective means of resolving disputes
because it is :
1. Established by the parties themselves and the
decision is acceptable to them.
2. Relatively expeditious when compared to courts and
tribunals.
 Conciliation

 Conciliation is a process by which the

representatives of workers and employers are brought
together before a third party with a view to persuading
them to arrive at an agreement by mutual discussion
between them. The third party may be an individual or
a group of people. The third party may also be called
as mediators.
 The ID Act, 1947and other state enactments
authorize the governments to appoint conciliators
charged with duty of mediating in and promoting the
settlement of industrial disputes.
 Conciliation

 Conciliation officer: an authority appointed by the government

to mediate disputes between parties brought to his notice;
enjoying the powers of a civil court. He is supposed to give
judgment within 14 days of the commencement of the conciliation
proceedings.
 Board of conciliation: The Board is an adhoc, tripartite body
having the powers of a civil court created for a specific
dispute(when the conciliation officer fails to resolve disputes
within a time frame, the board is appointed)
 Court of enquiry: In case the conciliation proceedings fail to
resolve a dispute, a court of enquiry is constituted by the
government to investigate the dispute and submit the report
within six months.
 Adjudication

 Adjudication means a mandatory settlement of an industrial dispute

by a labor court or a tribunal. Generally, the government deems a dispute
for adjudication depending on the failure of conciliation proceedings.
 Section 10 of the Industrial Act, 1947, provides for reference of a
dispute to labor court or tribunal.
 Disputes are generally referred to adjudication on the
recommendation of the conciliation officer who had dealt with them
earlier. The government has a discretionary powers to accept or reject
recommendations of the conciliation officer. It is obvious that once is
referred for adjudication , the verdict of a labor court or tribunal is
binding on both the parties.
 This is the most significant instrument of resolving disputes. But, it
has been criticized because of the delay involved in resolving conflicts.
 Consultative Machinery

 Consultative machinery is set by the government to resolve conflicts.

The main function is to bring the parties together for mutual settlement
of differences in the spirit of co-operation and goodwill.
 A consultative machinery operates at plant , industry , state and
national levels. At plant level, there are works committee and joint
management councils. Being bipartite in character, works
committee are constituted as per the provisions of industrial
Disputes Act, 1947 and joint management councils are set up following
the trust laid down in the Industrial Policy Resolution,1956. At the
industry level, there are wage boards and industrial committee.
 Labor advisory boards operate at the state and at the all
India level there are Indian labor conference and the Standing
labor committee. The bodies operating at state and national level, are
tripartite in character , representing government, labor and management.
 Workers’ participation in management

 Workers’ participation in management is an essential ingredient

of Industrial democracy.
 The concept of workers’ participation in management is based
on Human Relations approach to Management which brought
about a new set of values to labour and management.
 Traditionally the concept of Workers’ Participation in
Management (WPM) refers to participation of nonmanagerial
employees in the decision-making process of the organization.
 Workers’ participation is also known as ‘labour participation’ or
‘employee participation’ in management.
 Workers’ participation in management implies mental and
emotional involvement of workers in the management of
Enterprise.
 Contd…

 The concept of workers’ participation in

management encompasses the following:
 It provides scope for employees in decision-
making of the organization.
 The participation may be at the shop level,
departmental level or at the top level.
 The participation includes the willingness to share
the responsibility of the organization by the workers.
 Objectives of WPM

 To establish Industrial Democracy.

 To build the most dynamic Human Resources.
 To satisfy the workers’ social and esteem needs.
 To strengthen labour-management co-operation
and thus maintain Industrial peace and harmony.
 To promote increased productivity for the
advantage of the organization, workers and the
society at large.
 Its psychological objective is to secure full
recognition of the workers.
 Measures for making Participation effective

 1. Employer should adopt a progressive outlook. They

should consider the industry as a joint endeavour in which
workers have an equal say. Workers should be provided and
enlightened about the benefits of their participation in the
management.
 2. Employers and workers should agree on the objectives
of the industry. They should recognize and respect the rights
of each other.
 3. Workers and their representatives should be provided
education and training in the philosophy and process of
participative management. Workers should be made aware
of the benefits of participative management.
 Contd…

 4. There should be effective communication

between workers and management and effective
consultation of workers by the management in
decisions that have an impact on them.
 5. Participation should be a continuous process.
To begin with, participation should start at the
operating level of management.
 6. A mutual co-operation and commitment to
participation must be developed by both
management and labour.
THANK YOU