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uman Resource Management: There are only two important parties namely employee and

employer. Formulation of objectives, policies, procedure and programs of human resources

and implement them. Individual employee contacts with the immediate superior. Grievance
and disciplinary procedures are resorted to, to solve the employee-employer conflicts.
Reformulates the objectives, policies etc ,based on industrial conflicts which are the outcome of
unsound industrial relations. Human Resource Management (HRM) is the overall management of
all resources including workers, staff, executives, Top management and even suppliers and
customers. Industrial Relations: Industrial Relations (IR) in practice are the relations between
actual work force and management of the organization. Given below are some of the salient
features of IR: The implementation of HRM policies results in IR. There are four important
parties namely employees, employer, trade unions and government The sound IR contributes
to the organizational goals. The unsound IR result in industrial conflicts demanding for change
and reformulation of HRM objectives and goals Employees contact even the top management
as a group. Collective bargaining and forms of industrial conflicts are resorted to solve the
problems Industrial relations are governed by the system of rules and regulations concerning
work, workplace and working community. The main purpose is to maintain harmonious
relations between employees and employer by solving their problems through grievance
procedure and collective bargaining. Trade Unions is another important institution in the
Industrial relations. Trade unions influence and shape the industrial relations through collective
bargaining. Industrial relations are the relations mainly between employees and employers.
These relations emphasis on accommodating other parties interest, - See more at:
The scope of industrial relations is quite vast. The main issues involved here include the
Collective bargaining
Machinery for settlement of industrial disputes
Standing orders
Workers participation in management
Unfair labor practices

The role of the workers and their trade unions is the supply of the skills
necessary for the production of goods and services while the role of the
employers is the provision of the raw materials including human resources and
finance for the production of goods and services. The role of the government and
its agencies is the provision of an enabling environment for the production of
goods and services. Each of these actors performs its functions with the
expectation of certain rewards for their services. For instance, the workers and
their trade unions expect bountiful salaries and other favourable conditions of
employment in return for their services while the employers and their
associations expect good profits and other pecuniary in return for their
investments in raw materials and other resources supplied by them for the
production of goods and services. The government and its agencies expect tax
and orderliness in return for their services in providing the enabling environment
for the production of goods and services in organisations.
he components of industrial relations system are:
i) Participants: The participants in the industrial relations sphere are composed of duly
recognised representatives of the parties interacting in several roles within the system.

ii) Issues: The power interactions of the participants in a workplace create industrial relations
issues. These issues and the consequences of power interactions find their expression in a web
of rules governing the behaviour of the parties at a workplace.
iii) Structure: The structure consists of all forms of institutionalised behaviour in a system. The
structure may include collective procedures, grievances, and settlement practices. Legal
enactments relevant to power interactions may also be considered to be a part of the structure.
iv) Boundaries: In systems analysis, it is possible to find an issue which one participant is totally
indifferent to resolving while, at the same time, the other participant is highly concerned about
resolution of the same. These issues may serve to delimit systems boundaries.
At least there are three marked features of the systems approach. They are:
i) Inter-disciplinary Character: Some theorists regard the systems approach Industrial
Relations to be universally applicable to all human relationships, in small or large units. Its
flexibility of application in the behavioural sciences has been apply demonstrated.
ii) Suitability to Work Organisation and their Sub-systems: The adaptability of the systems
approach to organisation is also a frequently discussed trait. This springs from the fact that
organisations, and to some extent their sub-systems, are rational and purposeful.
iii) Dynamic Aspects: A systems approach is oriented towards the study of interactions and
changing relations.
Based on various components and features of industrial relations, a number of writers have
attempted to produce various functional approaches to industrial relations, which are given
Among the contributions, the most outstanding has been that of Prof. John T. Dunlop of Harvard
University. His systems treatment deserves special mention in view of its wider applicability. His
book Industrial Relations Systems (1958) was a pioneering volume in which he presented an
analytical framework of industrial relations. The stated purpose of this book is to present a
general theory of industrial relations and to provide tools of analysis to interpret and gain
understanding of the widest possible range of industrial relations facts and practices.
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. There are three sets of independent variables:
the actors, the contexts and the ideology of the system.
Conceptual Framework of Employment Relations
The principal groups identifiable in the system and which constitutes the structure of an industrial
relations system are as follows:
The Actors in a System: The actors are: (a) hierarchy of managers and their representatives in
supervision, (b) a hierarchy of workers (non-managerial) and any spokesmen, and (c) specialised
governmental agencies (and specialised private agencies created by the first two actors)
concerned with workers, enterprises, and their relationships. These first two hierarchies are
directly related to each other in that the managers have responsibilities at varying levels to issue
instructions (manage), and the workers at each corresponding level have the duty to follow such
instructions. The hierarchy of managers need have no relationship to the ownership of the capital

assets of the workplace, the managers may be public or private or a mixture in varying
proportions. The formal hierarchy of workers may be organised into several competing or
complementary organisations, such as, works councils, unions, and parties. The specialised
government agencies as actors may have functions in some industrial relations systems so
broad and decisive as to override the hierarchies of managers and workers on almost all matters.
In other industrial relations systems, the role of the specialised governmental agencies, at least
for many purposes, may be minor or constricted.
The Contexts of a System:In an industrial relations system, the contexts or the determinants
are of greater importance. The significant aspects of the environment in which the actors interact
are the technological characteristics of the workplace and work community, the market or
budgetary constraints that impinge on the actors, and the locus and distribution of power in the
larger society.The technological features of the workplace have a very far-reaching consequence
for an industrial relations system influencing the form of management and employee
organisation, the problems posed for supervision, many of the features of the required
labour force and the potentialities of public regulation. For instance, the mining industry has a
different technological context as compared to the manufacturing industry. Their place of work,
the methods of work, and the mode of living, have profound influence on evolving a particular
pattern of industrial relations system. The mining communities have frequently been isolated
from important urban areas and create special problems in human relations. Historically, this
raises a range of questions concerning housing, community services and welfare activities which
are frequently beyond the rules of workplace in many other sectors. Apart from the
characteristics of the workplace, the development of technology also affects industrial relations
by way of not only disturbing the existing employment patterns, but also by determining the size
of the work force employed. The market or budgetary constraints are a second feature of the
environmental context, which is fundamental to an industrial relations system. These constraints
often operate, in the first instance, directly upon the managerial hierarchy, but they necessarily
condition all the actors in a particular system. The context may be a market for the output of the
enterprise or a budgetary limitation or some combination of the two. The product market may
vary in the degree and character of competition through the full spectrum from pure competition,
monopolistic competition, oligopoly and monopoly. These constraints are no less operative in
socialist than in capitalist countries. The relevant market or budgetary constraints may be
local,national, or international, depending on the industrial relations system.
The locus and distribution of power in the larger society, of which the particular industrial
relations complex is a sub-system, is a third analytical feature of the environmental context. The
relative distribution of power among the actors in the larger society tends to a degree to be
reflected within the industrial relations system. At this juncture, the concern is not with the
distribution of power within the industrial relations system, but also outside the system. The
function of one of the actors in the industrial relations system, the specialised governmental
agencies, is likely to be particularly influenced by the distribution of power in the larger society.
The Ideology of an Industrial Relations System: The ideology is a philosophy or a
systematised body of beliefs and sentiments held by the actors. An important element that
completes the analytical system of industrial relations is the ideology or a set of ideas and beliefs
commonly held by the actors that helps to bind or to integrate the system together as an entity.
Each industrial relations system contains its ideology or shared understandings. The ideology
defines the role and place of each actor and the ideas, which each actor holds towards the place
and function of the others in the system. Each of the actors in an industrial relations system may
be said to have its own ideology. An industrial relations system requires that these ideologies be
sufficiently compatible and consistent so as to permit a common set of ideas and an acceptable
role for each actor.
The Establishment of Rules: The actors in a given context establish rules for the workplace
and the work community, including those governing contracts among the actors in an industrial
relations system. This network or web of rules consists of procedures for establishing rules, the
substantive rules, and procedures for deciding their application to particular situations. The

establishment of these procedures and rules is the centre of attention in an industrial relations
system. Thus, the establishment and administration of these rules is the major concern or output
of the industrial relations system. The actors who set the web of rules interact in the context
of an industrial relations system taken as a whole. These rules are broadly grouped into three
categories: (i) rules governing compensation in all its forms; (ii) the duties and performance
expected from workers, including rules of discipline for failure to achieve these standards; and
(iii) rules defining the rights and duties of workers. The rules change in response to change in the
contexts and relative status of the actors. The actors who set the rules may be workers and their
unions representing one category; employers, managers and their associations constituting a
second category; and government in the third category consisting of civil servants concerned
with the administration of labour matters.
Activity :Choose an industry with which you are familiar and use Dunlops framework to describe
the industrial relations system that exists there.


According to this approach, the industrial relations system is a study of institutions of job
regulations and the stress is on the substantive and procedural rules as in Dunlops model.
Flanders, the exponent of this approach, considers every business enterprise as a social system
of production and distribution, which has a structured pattern of Conceptual Framework of
relationships. The institution of job regulation is categorised by him as internal and Employment
Relations external the former being an internal part of the industrial relations system such as
code of work rules, wage structure, internal procedure of joint consultation, and grievance
procedure. He views trade unions as an external organisation and excludes collective
agreements from the sphere of internal regulation. According to him, collective bargaining is
central to the industrial relations system.
The Oxford Approach can be expressed in the form of an equation:
r = f (b) or r = f (c)
where, r = the rules governing industrial relations
b = collective bargaining
c = conflict resolved through collective bargaining.
The Oxford Approach can be criticised on the ground that it is too narrow to provide a
comprehensive framework for analysing industrial relations problems.It overemphasises the
significance of the political process of collective bargaining and gives insufficient weight to the
role of the deeper influences in the determination of rules. Institutional and power factors are
viewed as of paramount importance, while variables such as technology, market, status of the
parties, and ideology, are not given any prominence. This narrowness of approach constitutes a
severe limitation.
G. Margerison, an industrial sociologist, holds the view that the core of industrial relations is the
nature and development of the conflict itself. Margerison argued that conflict is the basic concept
that should form the basis of the study of industrial relations. The author criticised the prevalent
approach to industrial relations, which was more concerned with studying the resolution of
industrial conflict than its generation; with the consequences of industrial disputes than on their
causes. According to this school of thought, there are two major conceptual levels of industrial

relations. One is the intra-plant level where situational factors, such as job content, work task and
technology, and interaction factors produce three types of conflict distributive, structural, and
human relations. These conflicts are being resolved through collective bargaining, structural
analysis of the socio-technical systems and man-management analysis respectively. The second
level is outside the firm and, in the main, concerns with the conflict not resolved at the
intraorganisational level. However, this approach rejects the special emphasis given to rule
determination by the systems and Oxford models. In its place, it suggests a method of inquiry,
which attempts to develop sociological models of conflicts.
Like the systems model, 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 actors, it is claimed, agree in principle to cooperate in the
resolution of the conflict, their cooperation taking the form of bargaining. Thus, the action theory
analysis of industrial relations focuses primarily on bargaining as a mechanism for the resolution
of conflicts.Whereas the systems model of industrial relations constitutes a more or less
comprehensive approach, it is hardly possible to speak of one uniform action theory concept.
The class conflict analysis of industrial relations derives its impetus from Marxist social thinking
and interpretation. Marxism is essentially a method of social enquiry into the power relationships
of society and a way of interpreting social reality. The application of Marxian theory as it relates
to industrial relations derives indirectly from later Marxist scholars rather than directly from the
works of Marx himself. Industrial relations, according to Marxists, are in the first instance, marketrelations. To Marxists, industrial relations are essentially politicized and part of the class struggle.
For Marxists industrial and employee relations can only be understood as part of a broader
analysis of capitalist society in particular the social relations of
production and the dynamics of capital accumulation. As Marx himself put it, the mode of
production in material life determines the general character of the social, political and spiritual
process of life.
The Marxist approach is primarily oriented towards the historical development of the power
relationship between capital and labour. It is also characterised by the struggle of these classes
to consolidate and strengthen their respective positions with a view to exerting greater influence
on each other. In this approach, industrial relations is equated with a power-struggle. The price
payable for labour is determined by a confrontation between conflicting interests. The capitalist
ownership of the enterprise endeavours to purchase labour at the lowest possible price in order
to maximise their profits. The lower the price paid by the owner of the means of production for
the labour he employs, the greater is his profit. The Marxist analysis of industrial relations,
however, is not a comprehensive approach as it only takes into account the relations between
capital and labour. It is rather, a general theory of society and of social change, which has
implications for the analysis of industrial relations within what Marxists would describe as
capitalist societies.
Pluralism is a major theory in labour-management relations, which has many
powerful advocates. The focus is on the resolution of conflict rather than its generation, or, in the
words of the pluralist, on the institutions of job regulation. Kerr is one of the important exponents
of pluralism. According to him, the social environment is an important factor in industrial conflicts.
The isolated masses of workers are more strike-prone as compared to dispersed groups. When

industrial jobs become more pleasant and employees get more integrated into the wider society,
strikes will become less frequent. Ross and Hartmans cross national comparison of strikes
postulates the declining incidents of strikes as societies industrialise and develop appropriate
institutional framework. They claim that there has been a decline in strike activity all over the
world in spite of an increase in union membership. The theories on pluralism were evolved in the
mid-sixties and early seventies when England witnessed a dramatic resurgence of industrial
conflicts. However, the recent theories of pluralism emanate from British scholars, and in
particular from Flanders and Fox. According to Flanders, conflict is inherent in the industrial
system. He highlighted the need for a formal system of collective bargaining as a method of
conflict resolution.
Fox distinguishes between two distinct aspects of relationship between workers
and management. The first is the market relationship, which concerns with the terms
and conditions on which labour is hired. This relationship is essentially economic in character
and based on contracts executed between the parties. The second aspect relates to the
managements dealing with labour, the nature of their interaction, negotiations between the union
and management, distribution of power in the organisation, and participation of the union in joint
decision-making. The major critics Conceptual Framework of of the pluralist approach are the
Marxists according to whom exploitation and slavery Employment Relations will continue
unabated in the institutional structure of pluralism. The only difference is that in such a social
structure, the worker will be deemed to be a better-paid wage slave.
The social action approach of Weber has laid considerable importance to the question of control
in the context of increasing rationalisation and bureaucratisation. Closely related to Webers
concern related to control in organisations was his concern with power of control and dispersal.
Thus a trade union in the Webers scheme of things has both economic purposes as well as the
goal of involvement in political and power struggles. Some of the major orientations in the
Weberian approach have been to analyse the impact of techno-economic and politicoorganisational changes on trade union structure and processes, to analyse the subjective
interpretation of workers approaches to trade unionism and finally to analyse the power of
various components of the industrial relations environment government, employers, trade
unions and political parties. Thus the Weberian approach gives the theoretical and operational
importance to control as well as to the power struggle to control work organisations a power
struggle in which all the actors in the industrial relations drama are caught up.
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, and (c) to gain satisfaction
from their relationships. The human relations school founded by Elton Mayo and later propagated
by Roethlisberger, Whitehead, W.F. Whyte, and Homans offers a coherent view of the nature of
industrial conflict and harmony. The human relations approach highlights certain policies and
techniques to improve employee morale, efficiency and job satisfaction. It encourages the small
work group to exercise considerable control over its environment and in the process helps
to remove a major irritant in labour-management relations. But there was reaction against the
excessive claims of this school of thought in the sixties. Some of its views
were criticised by Marxists, pluralists, and others on the ground that it encouraged dependency
and discouraged individual development, and ignored the importance of technology and culture

in industry. Taking a balanced view, however, it must be admitted that the human relations school
has thrown a lot of light on certain aspects such as communication, management development,
acceptance of workplace as a social system, group dynamics, and participation in management.
Gandhiji can be called one of the greatest labour leaders of modern India. His approach to labour
problems was completely new and refreshingly human. He held definite views regarding fixation
and regulation of wages, organisation and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labour indiscipline, workers participation in
management, conditions of work and living, and duties of workers. The Ahmedabad Textile
Labour Association, a unique and successful experiment in Gandhian trade unionism,
implemented many of his ideas. Gandhiji had immense faith in the goodness of man and he
believed that many of the evils of the modern world have been brought about by wrong systems
and not by wrong individuals. He insisted on recognising each individual worker as a human
being. He believed in non-violent communism, going so far as to say that if communism comes
without any violence, it would be welcome. Gandhiji laid down certain conditions for a successful
These are: (a) the cause of the strike must be just and there should be no strike without a
grievance; (b) there should be no violence; and (c) non-strikers or blacklegs should never be
molested. He was not against strikes but pleaded that they should be the last weapon in the
armoury of industrial workers and hence should not be resorted to unless all peaceful and
constitutional methods of negotiations, conciliation and arbitration are exhausted.
His concept of trusteeship is a significant contribution in the sphere of industrial relations.
According to him, employers should not regard themselves as sole owners of mills and factories
of which they may be the legal owners. They should regard themselves only as trustees, or coowners. He also appealed to the workers to behave as trustees, not to regard the mill and
machinery as belonging to the exploiting agents but to regard them as their own, protect them
and put to the best use they can. In short, the theory of trusteeship is based on the view that all
forms of property and human accomplishments are gifts of nature and as such, they belong not
to any one individual but to society. Thus, the trusteeship system is totally different from other
contemporary labour relations systems. It aimed at achieving economic equality and the material
advancement of the have-nots in a capitalist society by non-violent means.
Gandhiji realised that relations between labour and management can either be a powerful
stimulus to economic and social progress or an important factor in economic and social
stagnation. According to him, industrial peace was an essential condition not only for the growth
and development of the industry itself, but also in a great measure, for the improvement in the
conditions of work and wages. At the same time, he not only endorsed the workers right to adopt
the method of collective bargaining but also actively supported it. He advocated voluntary
arbitration and mutual settlement of disputes. He also pleaded for perfect understanding between
capital and labour, mutual respect, recognition of equality, and strong labour organisation as
the essential factors for happy and constructive industrial relations. For him, means and ends are
equally important.
The term, human resource management (HRM) has become increasingly used in the literature of
personnel/industrial relations. The term has been applied to a diverse range of management
strategies and, indeed, sometimes used simply as a more modern, and therefore more
acceptable, term for personnel or industrial relations management. Some of the components of

HRM are: (i) human resource organisation; (ii) human resource planning; (iii) human resource
systems; (iv) human resource development; (v) human resource relationships; (vi) human
resource utilisation;(vii) human resource accounting; and (viii) human resource audit. This
approach emphasises individualism and the direct relationship between management and its
employees. Quite clearly, therefore, it questions the collective regulation basis of traditional
industrial relations.

The subject of industrial relations has undergone several changes because of vital contributions
made by a number of disciplines. In developing theoretical models of industrial relations, it
becomes necessary to appreciate the contributions made by various social scientists. Such
models can be used for analysing concrete situations and to build a systematic and
comprehensive theory of industrial relations. The different perspectives and theories enable us to
understand industrial relations institutions, structures, processes and behaviour of individuals.
The practitioners of industrial relations consider theory as the opposite of practice. Nevertheless,
any systematic practice implies some theory.
Basically, there are two main stands in theorising industrial relations. One group (externalists)
lays emphasis on external factors like state of technology, methods of production, supply and
demand in the product market and in the labour market, legal-political relationships, and so on.
The environmental theorists have been primarily economists and to a smaller extent, lawyers,
political scientists, and sociologists. They lay emphasis on the nexus between broad
environmental changes and employer-employee relations. The in-plant theories of internalists
have their origin in the human relations school propounded by Elton Mayo and others. These
theorists stress on employee motivation, attitude and morale, styles of supervision, and forms of
management leadership.
A.W.J. Craig presented the input-output model of industrial relations system in the late 1960s. In
his model, the actors and the context are similar to those of Dunlops model. The main
component of Craigs model are: (a) the inputs or the goals, and the values and power of the
actors; (b) mechanism for the conversion of inputs into outputs; (c) the outputs of the system are
the financial, psychological and social rewards for the workers. The output is in the form of the
rules, which govern matters such as pay, working conditions, and hours of work. One of the
major objectives of theorising industrial relations is to help the practitioners to understand what is
taking place and causes for the same. Industrial relations theory might be useful to practitioners if
it could help them in three respects: first, to understand the present industrial relations situation;
second, to forecast trends and to predict what will happen under specific given conditions; and
third, to help the practitioners to bring about certain desired changes and to avoid certain other
changes in the present or in the future state of industrial relations. One of the most difficult
attempts in industrial relations is to build up a theory and to generalise on its activity, which is
highly dynamic. A host of factors, both internal and external, and conflict generating as well as
conflict resolving factors, influence the shape of industrial relations activity. The industrial
relations system in an organisation works in the context of pressures, tensions and conflicts, and
is mainly related to power politics, economic, cultural and other differences. An inter-mix of
such dynamic factors, and key institutional variables, is necessary in theorising
industrial relations.
The term industrial relations refers to the complexity of human relationships, which emerge in

work situations. The subject of industrial relations deals with certain regulated and
institutionalised relationships in industry. The employment relationship in any work situation
provides the setting for industrial relations. With this objective, the workers as a group form trade
unions, the employers form their own associations, and the state provides institutions for the
regulation of relations. The field of industrial relations has a multi-disciplinary base. It draws upon
concepts from the established Concept, Scope and disciplines in social sciences, such as
economics, sociology, and psychology. These Approaches to disciplines have developed theories
of industrial relations, but they differ considerably Industrial Relations in their theoretical
framework and practical application. The theorising in this field has developed in the direction of
(a) environmental or external theories, and (b) internalists or in-plant theories. The prominent
contribution to the industrialrelations literature is the systems approach developed by John T.
Dunlop who views industrial relations system as a sub-system of society. - See more at:
Industrial Relation is A Social Sub System
One of the significant theories of industrial labor relations was put forth by John Dunlop in the
1950s. According to Dunlop industrial relations system consists of three agents management
organizations, workers and formal/informal ways they are organized and government agencies.
These actors and their organizations are located within an environment defined in terms of
technology, labor and product markets, and the distribution of power in wider society as it impacts
upon individuals and workplace. Within this environment, actors interact with each other, negotiate
and use economic/political power in process of determining rules that constitute the output of the
industrial relations system. He proposed that three partiesemployers, labor unions, and
government-- are the key actors in a modern industrial relations system. He also argued that none
of these institutions could act in an autonomous or independent fashion. Instead they were shaped,
at least to some extent, by their market, technological and political contexts.Thus it can be said
that industrial relations is a social sub system subject to three environmental constraints- the
markets, distribution of power in society and technology.
Dunlop's model
Dunlop's model identifies three key factors to be considered in conducting an analysis of the
management-labor relationship:
1. Environmental or external economic, technological, political, legal and social forces that impact
employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor,
management, and government.
3. Rules that are derived from these interactions that govern the employment relationship.
Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of
industrial relations may be regarded as a system in the sense that each of them more or less
intimately affects each of the others so that they constitute a group of arrangements for dealing
with certain matters and are collectively responsible for certain results.In effect - Industrial
relations is the system which produces the rules of the workplace. Such rules are the product of
interaction between three key actors workers/unions, employers and associated organizations
and governmentThe Dunlops model gives great significance to external or environmental forces. In
other words, management, labor, and the government possess a shared ideology that defines their
roles within the relationship and provides stability to the system.

Industrial Disputes
Industrial disputes are organised protests against existing terms of employment
or conditions of work. According to the Industrial Dispute Act, 1947, an Industrial
dispute means
Any dispute or difference between employer and employer or between employer
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 labour of any person
In practice, Industrial dispute mainly refers to the strife between
employers and their employees. An Industrial dispute is not a personal dispute of
any one person. It generally affects a large number of workers community
having common interests.

Prevention of Industrial Disputes:

The consequences of an Industrial dispute will be harmful to the owners of

industries, workers, economy and the nation as a whole, which results in loss of
productivity, profits, market share and even closure of the plant. Hence,
Industrial disputes need to be averted by all means.
Prevention of Industrial disputes is a pro-active approach in
which an organisation undertakes various actions through which the occurrence
of Industrial disputes is prevented. Like the old saying goes, prevention is better
then cure.

Model Standing Orders: Standing orders define and regulate terms and
conditions of employment and bring about uniformity in them. They also specify
the duties and responsibilities of both employers and employees thereby
regulating standards of their behaviour. Therefore, standing orders can be a good
basis for maintaining harmonious relations between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more
is required to frame standing orders in consultation with the workers. These
orders must be certified and displayed properly by the employer for the
information of the workers.

Code of Industrial discipline: The code of Industrial discipline defines
duties and responsibilities of employers and workers. The objectives of the code
To secure settlement of disputes by negotiation, conciliation and voluntary
To eliminate all forms of coercion, intimidation and violence.
To maintain discipline in the industry.
To avoid work stoppage.
To promote constructive co-operation between the parties concerned at all

Works Committee: The Industrial Dispute Act, 1947 has provided for the
establishment of works committees. In case of any industrial establishment in
which 100 or more workers are employed, a works committee consisting of
employees and workers is to be constituted; it shall be the duty of the Works
Committee to promote measures for securing and preserving amity and good
relations among the employees and workers.


Joint Management Councils:


Suggestion Schemes:


Joint Councils:

Collective Bargaining: Collective Bargaining is a process in which the
representatives of the employer and of the employees meet and attempt to
negotiate a contract governing the employer-employee-union relationships.
Collective Bargaining involves discussion and negotiation between two groups as
to the terms and conditions of employment.

Labour welfare officer: The factories Act, 1948 provides for the
appointment of a labour welfare officer in every factory employing 500 or more
workers. The officer looks after all facilities in the factory provided for the health,
safety and welfare of workers. He maintains liaison with both the employer and
the workers, thereby serving as a communication link and contributing towards

healthy industrial relations through proper administration of standing orders,

grievance procedure etc.

Tripartite bodies: Several tripartite bodies have been constituted at
central, national and state levels. The India labour conference, standing labour
committees, Wage Boards and Industries Committees operate at the central
level. At the state level, State Labour Advisory Boards have been set up. All
these bodies play an important role in reaching agreements on various labourrelated issues. The recommendations given by these bodies are however
advisory in nature and not statutory.

Machinery for settlement of Industrial Disputes:

Conciliation: Conciliation refers to the process by which representatives
of employees and employers are brought together before a third party with a
view to discuss, reconcile their differences and arrive at an agreement through
mutual consent. The third party acts as a facilitator in this process. Conciliation is
a type of state intervention in settling the Industrial Disputes. The Industrial
Disputes Act empowers the Central & State governments to appoint conciliation
officers and a Board of Conciliation as and when the situation demands.
Conciliation Officer: The appropriate government may, by notification in the
official gazette, appoint such number of persons as it thinks fit to be the
conciliation officer. The duties of a conciliation officer are:
To hold conciliation proceedings with a view to arrive at amicable
settlement between the parties concerned.
To investigate the dispute in order to bring about the settlement between
the parties concerned.
To send a report and memorandum of settlement to the appropriate
To send a report to the government stating forth the steps taken by him in
case no settlement has been reached at.
The conciliation officer however has no power to force a
settlement. He can only persuade and assist the parties to reach an agreement.
The Industrial Disputes Act prohibits strikes and lockouts during that time when
the conciliation proceedings are in progress.

Arbitration: A process in which a neutral third party listens to the
disputing parties, gathers information about the dispute, and then takes a

decision which is binding on both the parties. The conciliator simply assists the
parties to come to a settlement, whereas the arbitrator listens to both the parties
and then gives his judgement.

Advantages of Arbitration:
It is established by the parties themselves and therefore both parties have
good faith in the arbitration process.
The process in informal and flexible in nature.
It is based on mutual consent of the parties and therefore helps in building
healthy Industrial Relations.
Delay often occurs in settlement of disputes.
Arbitration is an expensive procedure and the expenses are to be shared by
the labour and the management.
Judgement can become arbitrary when the arbitrator is incompetent or biased.
There are two types of arbitration:
Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed
by both the parties through mutual consent and the arbitrator acts only when the
dispute is referred to him.
Compulsory Arbitration: Implies that the parties are required to refer the
dispute to the arbitrator whether they like him or not. Usually, when the parties
fail to arrive at a settlement voluntarily, or when there is some other strong
reason, the appropriate government can force the parties to refer the dispute to
an arbitrator.

Adjudication: Adjudication is the ultimate legal remedy for settlement of
Industrial Dispute. Adjudication means intervention of a legal authority appointed
by the government to make a settlement which is binding on both the parties. In
other words adjudication means a mandatory settlement of an Industrial dispute
by a labour court or a tribunal. For the purpose of adjudication, the Industrial
Disputes Act provides a 3-tier machinery:

Labour court


Industrial Tribunal


National Tribunal

Labour Court: The appropriate government may, by notification in the
official gazette constitute one or more labour courts for adjudication of Industrial
disputes relating to any matters specified in the second schedule of Industrial
Disputes Act. They are:
v Dismissal or discharge or grant of relief to workmen wrongfully dismissed.
v Illegality or otherwise of a strike or lockout.
v Withdrawal of any customary concession or privileges.

Where an Industrial dispute has been referred to a labour court for adjudication,
it shall hold its proceedings expeditiously and shall, within the period specified in
the order referring such a dispute, submit its report to the appropriate
Industrial Tribunal: The appropriate government may, by notification in
the official gazette, constitute one or more Industrial Tribunals for the
adjudication of Industrial disputes relating to the following matters:
v Wages
v Compensatory and other allowances
v Hours of work and rest intervals
v Leave with wages and holidays
v Bonus, profit-sharing, PF etc.
v Rules of discipline
v Retrenchment of workmen
v Working shifts other than in accordance with standing orders
It is the duty of the Industrial Tribunal to hold its proceedings
expeditiously and to submit its report to the appropriate government within the
specified time.
National Tribunal: The central government may, by notification in the
official gazette, constitute one or more National Tribunals for the adjudication of
Industrial Disputes in
v Matters of National importance
v Matters which are of a nature such that industries in more than one state are
likely to be interested in, or are affected by the outcome of the dispute.
It is the duty of the National Tribunal to hold its proceedings expeditiously and to
submit its report to the central government within the stipulated time.

Collective Bargaining
Good relations between the employer and employees are essential for the
success of industry. In order to maintain good relations, it is necessary that
industrial disputes are settled quickly and amicably. One of the efficient methods
of resolving industrial disputes and deciding the employment conditions
is Collective Bargaining. Industrial disputes essentially refer to differences or
conflicts between employers and employees.
Collective Bargaining is a process in which the management and
employee representatives meet and negotiate the terms and conditions of
employment for mutual benefit. Collective bargaining involves discussion and
negotiation between two groups as to the terms and conditions of employment.
It is termed Collective because both the employers negotiators and the
employees act as a group rather than individuals. It is known as Bargaining
because the method of reaching an agreement involves proposals and counterproposals, offers and counter offers. There should be no outsiders involved in the
process of collective bargaining.
According to Walton and McKersie the process of Collective Bargaining consists of
four types of activities:

Distributive Bargaining: It involves haggling over the distribution of
surplus. Various activities involved in this activity are wages, salaries, bonus and
other financial issues. In this activity, both the parties face a win/lose situation.
Integrative Bargaining: Also known as Interest-Based Bargaining, issues
which are not damaging to either party are discussed. It is a negotiation strategy
in which both the parties collaborate to find a win-win solution to their problems.
This strategy focuses on developing mutually beneficial agreements based on
the interests of the disputants. Issues brought up may be better job evaluation
procedures, better performance appraisal methods or training programmes etc.
Attitudinal structuring: Attitudinal structuring refers to efforts by
negotiators to shape their opponents' perceptions about the nature of the issues
to be negotiated. By cultivating an atmosphere of friendliness, mutual respect,
trust, and cooperation, negotiators can encourage their opponents to view issues
largely in integrative terms and participate in joint problem solving. This activity
involves shaping and reshaping some perceptions like trust/distrust,
friendliness/hostility, co-operative/non-cooperative between the labour and
management. When there is a backlog of bitterness between both the parties,
attitudinal structuring is required to maintain smooth and harmonious industrial
Intra-Organisational Bargaining: It is a type of manoeuvring to achieve
consensus among the workers and management. Even within the union there
may be differences between different groups as may be the case with the
management. Intra-organisational consensus is required for the smooth
acceptance of the outcome of Collective Bargaining.

Objectives of Collective Bargaining:

To maintain cordial relations between the employer and employees.

To protect the interests of the workers through collective action and by
preventing unilateral actions from being taken by the employer.
To ensure the participation of trade unions in industry.
To avoid the need for government intervention as collective bargaining is a
voluntary collective process.
To promote Industrial democracy.
Characteristics of Collective Bargaining:

It is a group or collective action as opposed to individual action. It is initiated

through the representatives of the employees.

It is a flexible and dynamic process where-in no party adopts a rigid attitude.

It is a continuous process, which provides a mechanism for continuous
negotiations and discussions between management and the trade unions.
It is a voluntary process without any third-party intervention. Both workers and
management voluntarily participate in the negotiations, discuss and arrive at a
solution. That is why it is known as a bipartite process where workers
representatives and management get an opportunity for clear, face-to-face
It ensures industrial democracy at the workplace; it is a self-run government in
It is a two-way process. It is a mutual give and take rather than a take home
all method of arriving at a solution to a dispute.

Process of Collective Bargaining

Preparation for Negotiation

Identifying issues for Bargaining


Negotiated Agreement

Ratification of Agreement
Implementation of Agreement

Preparation for Negotiation: Preparation for negotiation in Collective
Bargaining is as important as the negotiation process itself. Upto 83% of the
outcomes are influenced by pre-negotiation process. Such preparation is required

for both management as well as the union representatives. From the

managements point of view, pre-negotiation preparation is required as:
Management should decide when and how to open the negotiations/dialogue.
Management must choose the representatives to negotiate at the negotiation
Draft for likely decisions should be prepared in advance so that the final
agreement draft can be prepared as soon as the negotiation process is over.
From the employees side also, preparation is required for the following reasons:
The union should collect the information related to the financial position of the
company and their ability to pay the employees.
The union must also be aware of the various practices followed by other
companies in the same region or industry.
The union must assess the attitudes and expectations of the employees over
concerned issues so that the outcome of negotiations does not face any
resistance from them.

Identifying issues for Bargaining: The second step in bargaining
process is the determination of issues which will be taken up for negotiations.
The different types of issues are:
Wage-related issues: Include wage or salary revision, allowance for meeting
increased cost of living like Dearness Allowance (D.A), financial perks, incentives
Supplementary economic benefits: These include pension plans, gratuity
plans, accident compensation, health insurance plans, paid holidays etc.
Administrative issues: Include seniority, grievance procedures, employee
health and safety measures, job security and job changes.
The wage and benefits issues are the ones which receive the greatest amount of
attention on the bargaining table.

Negotiation: When the first two steps are completed, both parties
engage in actual negotiation process at a time and place fixed for the purpose.
There a re two types of negotiations:

Boulwarism: In this method, the management themselves takes the initiative to

find out through comprehensive research and surveys the needs of the
employees. Based on the analysis of the findings, the company designs its own

package based on the issues to be bargained. Thereafter, a change is

incorporated only when new facts are presented by the employees or their
Continuous Bargaining: Involves parties to explore particular bargaining
problems in joint meetings over a long period of time, some throughout the life
of each agreement. The basic logic behind this method is that all persistent
issues can be addressed through continuous negotiation over a period of time.
The success of negotiations depends on the skills and abilities of the negotiators.

Initial negotiated agreement: When two parties arrive at a mutually
acceptable agreement either in the initial stage or through overcoming
negotiation breakdown, the agreement is recorded with a provision that the
agreement will be formalized after the ratification by the respective

Ratification of agreement: Ratification of negotiated agreement is
required because the representatives of both the parties may not have ultimate
authority to decide various issues referred to for collective bargaining. The
ratification of agreement may be done by the appropriate manager authorized
for the purpose in the case of management, or trade executives in the case of
the employees. Ratification is also required by the Industrial Disputes Act. It is
important that the agreement must be clear and precise. Any ambiguity leads to
future complications or other such problems.

Implementation of agreement: Signing the agreement is not the end of
collective bargaining, rather it is the beginning of the process when the
agreement is finalized, it becomes operational from the date indicated in the
agreement. The agreement must be implemented according to the letter and
spirit of the provisions made by the agreement agreed to by both parties. The HR
manager plays a crucial role in the day-to-day administration implementation of
the agreement.

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 non-managerial employees in the decision-making
process of the organization. Workers participation is also known as labour
participation or employee participation in management. In Germany it is known
as co-determination while in Yugoslavia it is known as self-management. The
International Labour Organization has been encouraging member nations to
promote the scheme of Workers Participation in Management.

Workers participation in management implies mental and emotional

involvement of workers in the management of Enterprise. It is considered as a
mechanism where workers have a say in the decision-making.

Definition: According to Keith Davis, Participation refers to the mental and

emotional involvement of a person in a group situation which encourages him to
contribute to group goals and share the responsibility of achievement.

According to Walpole, Participation in Management gives the worker a sense of

importance, pride and accomplishment; it gives him the freedom of opportunity
for self-expression; a feeling of belongingness with the place of work and a sense
of workmanship and creativity.

The concept of workers participation in management encompasses the


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
The participation includes the willingness to share the responsibility of the
organization by the workers.
Features of WPM:

Participation means mental and emotional involvement rather than mere
physical presence.
Workers participate in management not as individuals but collectively as a
group through their representatives.
Workers participation in management may be formal or informal. In both
the cases it is a system of communication and consultation whereby employees
express their opinions and contribute to managerial decisions.

There can be 5 levels of Management Participation or WPM:

a. Information participation: It ensures that employees are able to receive

information and express their views pertaining to the matter of general economic

b. Consultative importance: Here workers are consulted on the matters of

employee welfare such as work, safety and health. However, final decision
always rests with the top-level management, as employees views are only
advisory in nature.

c. Associative participation: It is an extension of consultative participation as

management here is under the moral obligation to accept and implement the
unanimous decisions of the employees. Under this method the managers and
workers jointly take decisions.

d. Administrative participation: It ensures greater share of workers

participation in discharge of managerial functions. Here, decisions already taken
by the management come to employees, preferably with alternatives for
administration and employees have to select the best from those for

e. Decisive participation: Highest level of participation where decisions are

jointly taken on the matters relating to production, welfare etc.

Objectives of WPM:


To establish Industrial Democracy.


To build the most dynamic Human Resources.


To satisfy the workers social and esteem needs.

4. 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.

Strategies / Methods / Schemes / Forms of WPM:

1. Suggestion schemes: Participation of workers can take place through
suggestion scheme. Under this method workers are invited and encouraged to
offer suggestions for improving the working of the enterprise. A suggestion box
is installed and any worker can write his suggestions and drop them in the box.
Periodically all the suggestions are scrutinized by the suggestion committee or
suggestion screening committee. The committee is constituted by equal
representation from the management and the workers. The committee screens
various suggestions received from the workers. Good suggestions are accepted
for implementation and suitable awards are given to the concerned workers.
Suggestion schemes encourage workers interest in the functioning of an

2. Works committee: Under the Industrial Disputes Act, 1947, every

establishment employing 100 or more workers is required to constitute a works
committee. Such a committee consists of equal number of representatives from
the employer and the employees. The main purpose of this committee is to
provide measures for securing and preserving amity and good relations between
the employer and the employees.

Functions: Works committee deals with matters of day-to-day functioning at the

shop floor level. Works committees are concerned with:

Conditions of work such as ventilation, lighting and sanitation.

Amenities such as drinking water, canteens, dining rooms, medical and health

Educational and recreational activities.

Safety measures, accident prevention mechanisms etc.

Works committees function actively in some organizations like Tata Steel, HLL,
etc but the progress of Works Committees in many organizations has not been
very satisfactory due to the following reasons:

Lack of competence and interest on the part of workers representatives.

Employees consider it below their dignity and status to sit alongside bluecollar workers.

Lack of feedback on performance of Works Committee.

Undue delay and problems in implementation due to advisory nature of


3. Joint Management Councils: Under this system Joint Management Councils

are constituted at the plant level. These councils were setup as early as 1958.
These councils consist of equal number of representatives of the employers and
employees, not exceeding 12 at the plant level. The plant should employ at
least500 workers. The council discusses various matters relating to the working
of the industry. This council is entrusted with the responsibility of administering

welfare measures, supervision of safety and health schemes, scheduling of

working hours, rewards for suggestions etc.

Wages, bonus, personal problems of the workers are outside the scope of
Joint management councils. The council is to take up issues related to accident
prevention, management of canteens, water, meals, revision of work rules,
absenteeism, indiscipline etc. the performance of Joint Management Councils
have not been satisfactory due to the following reasons:

Workers representatives feel dissatisfied as the councils functions are

concerned with
only the welfare activities.
Trade unions fear that these councils will weaken their strength as workers
come under
the direct influence of these councils.
4. Work directors: Under this method, one or two representatives of workers
are nominated or elected to the Board of Directors. This is the full-fledged and
highest form of workers participation in management. The basic idea behind this
method is that the representation of workers at the top-level would usher
Industrial Democracy, congenial employee-employer relations and safeguard the
workers interests. The Government of India introduced this scheme in several
public sector enterprises such as Hindustan Antibiotics, Hindustan Organic
Chemicals Ltd etc. However the scheme of appointment of such a director from
among the employees failed miserably and the scheme was subsequently

5. Co-partnership: Co-partnership involves employees participation in the

share capital of a company in which they are employed. By virtue of their being
shareholders, they have the right to participate in the management of the
company. Shares of the company can be acquired by workers making cash
payment or by way of stock options scheme. The basic objective of stock options
is not to pass on control in the hands of employees but providing better financial
incentives for industrial productivity. But in developed countries, WPM through
co-partnership is limited.

6. Joint Councils: The joint councils are constituted for the whole unit, in every
Industrial Unit employing 500 or more workers, there should be a Joint Council for
the whole unit. Only such persons who are actually engaged in the unit shall be
the members of Joint Council. A joint council shall meet at least once in a quarter.
The chief executive of the unit shall be the chairperson of the joint council. The
vice-chairman of the joint council will be nominated by the worker members of

the council. The decisions of the Joint Council shall be based on the consensus
and not on the basis of voting.

In 1977 the above scheme was extended to the PSUs like commercial and
service sector organizations employing 100 or more persons. The organizations
include hotels, hospitals, railway and road transport, post and telegraph offices,
state electricity boards.

7. Shop councils: Government of India on the 30th of October 1975 announced

a new scheme in WPM. In every Industrial establishment employing 500 or more
workmen, the employer shall constitute a shop council. Shop council represents
each department or a shop in a unit. Each shop council consists of an equal
number of representatives from both employer and employees. The employers
representatives will be nominated by the management and must consist of
persons within the establishment. The workers representatives will be from
among the workers of the department or shop concerned. The total number of
employees may not exceed 12.

Functions of Shop Councils:


Assist management in achieving monthly production targets.

2. Improve production and efficiency, including elimination of wastage of man


3. Study absenteeism in the shop or department and recommend steps to

reduce it.

4. Suggest health, safety and welfare measures to be adopted for smooth

functioning of staff.

5. Look after physical conditions of working such as lighting, ventilation, noise

and dust.

6. Ensure proper flow of adequate two way communication between

management and workers.

Workers Participation in Management in India

Workers participation in Management in India was given importance only after

Independence. Industrial Disputes Act, 1947 was the first step in this direction,
which recommended for the setting up of works committees. The joint
management councils were established in 1950 which increased the labour
participation in management. Since July 1975 the two-tier participation called
shop councils at shop level and Joint councils were introduced.
Workers participation in Management Bill, 1990 was introduced in Parliament
which provided scope for upliftment of workers.

Reasons for failure of Workers participation Movement in India:

1. Employers resist the participation of workers in decision-making. This is

because they feel that workers are not competent enough to take decisions.
2. Workers representatives who participate in management have to perform
the dual roles of workers spokesman and a co-manager. Very few
representatives are competent enough to assume the two incompatible roles.
3. Generally Trade Unions leaders who represent workers are also active
members of various political parties. While participating in management they
tend to give priority to political interests rather than the workers cause.
4. Schemes of workers participation have been initiated and sponsored by the
Government. However, there has been a lack of interest and initiative on the part
of both the trade unions and employers.
5. In India, labour laws regulate virtually all terms and conditions of
employment at the workplace. Workers do not feel the urge to participate in
management, having an innate feeling that they are born to serve and not to
6. The focus has always been on participation at the higher levels, lower levels

have never been allowed to participate much in the decision-making in the

7. The unwillingness of the employer to share powers with the workers
representatives, the disinterest of the workers and the perfunctory attitude of the
government towards participation in management act as stumbling blocks in the
way of promotion of participative management.
Measures for making Participation effective:

Employer should adopt a progressive outlook. They should consider the
industry as a joint endeavor in which workers have an equal say. Workers should
be provided and enlightened about the benefits of their participation in the
Employers and workers should agree on the objectives of the industry.
They should recognize and respect the rights of each other.
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.
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.
Participation should be a continuous process. To begin with, participation
should start at the operating level of management.
A mutual co-operation and commitment to participation must be
developed by both management and labour.
Modern scholars are of the mind that the old adage a worker is a worker, a
manager is a manager; never the twain shall meet should be replaced by
managers and workers are partners in the progress of business

M B A - H R M
I n d u s t r i a l
R e l a t i o n s
M a n a g e m e n t production,
improves quality of work and
products efficiency of workers increased. Cost of production lowered.Bad
Industrial Relations leads to industrial unrest industrial dispute and a downward
trend toindustries workers and the nation. Of course the fi rst hit will be
on the employers, who hasinvested.Industrial worker and the employers

normally dont think, feel or act in precisely the same w a y a n d

b e c a u s e e a c h s t a r t s f r o m a d i ff e r e n t p o i n t c o n fl i c t o f s o m e f o r t
c a n m o v e r b e eliminated completely.The main reasons for industrial discard,
can be due to1. Misunderstanding or diff erences in perception2. Lack of
co operation real or imagined3. Problems with authority4. Future
to comply with policies or stick to plans.5. His Agreements over ways to achieve
agreed goals.Conflict can have some positive aspects also, they may give
positive results like1. Reveal new aspect of an existing issue2. Improve long
term communication between the
individuals concerned3. Always previously stifled emotions to be released1.6
Definition of some important terms used in Industrial RelationsArbitrator
Neutral person to decide on common issue, includes an umpireAverage pay
average wages payable to a workman(a) In case of monthly paid workman
in the three complete calendar months, in the case of weekly paid, in
the four complete weeks, in the case of daily paid workman in the 12
fullworking days precedingAward: An interim or a fi nal determination of
any industrial distribute or of any questionrelating there to by
any labour (court), industrial Tribunal or national Tribunal
and includesan arbitration awardConciliation officer: Means conciliation officer
appointed under (1) Act to make conciliatoryeffort between employer and
employees to bring amity.
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M B A - H R M
I n d u s t r i a l
R e l a t i o n s
M a n a g e m e n t Labour Co
urt Means a labour court constituted
u n d e r ( 1 . D ) A c t t o a d j u d i c i a t e o v e r industrial dispute cases etc.P u b l i c
utility Service (I) Any Railway service or any transport service
f o r c a r r i a g e o f passenger or goods by air (2) any service in major port to
clock.Postal & TelegraphIndustrial establishments on the working of which
the safety of the establishments, or the workmen employed there in
depends.Industries which supply power light, water to publicPublic conservancy
or sanitation.Few others indicated in Schedules.Settlement :- means a
settlement arranged or in the course of conciliation proceedings
andinclude a written agreement between the employer and workmen arrived at
otherwise than inthe course of conciliation proceeding where such
agreement has been signed by the partiesthere to in such manner as
may be prescribed and a copy there of has been sent to an
offi cer authorized in this behalf by the appropriate government and the
officer I t m e a n s a n a d j u s t m e n t a r r i v e d a t i n t h e c o u r s e o f c o
n c i l i a t i o n p r o c e e d i n g b e f o r e a c o n c i l i a t i o n o ffi c e r o r b e f o r e
Board of conciliation. It also includes a written
a g r e e m e n t between the employer and the workmen otherwise than in the con

ciliation proceedings. Insuch a case the agreement must be signed by the parties
in the prescribed manner and a copyof which must be sent to an offi cer
authorized in this behalf by the appropriate governmentand the
conciliation offi cer. Thus the settlement indicates the agreement
arrived at either inthe conciliation proceedings or otherwise between
employer and the workmen. Unfair labour practice. Generally to interfere with,
restrain from, join or assist a trade union or to engage inconcerted activities for
the purpose of collective bargaining or other mutual aid or
protectionto establish employer sponsored trade union of workmen,
to discharge or dismiss workmen by way of victimisation, to recruit workmen
during a strike which is not an illegal strike etc.Details of above are appended.
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M B A - H R M
I n d u s t r i a l
R e l a t i o n s
M a n a g e m e n t All
remuneration capable of being expressed in terms of money which would if the
terms of employment expressed or implied, were fulfilled, be payable to a
workman in respect of hisemployment or of work done in such employment
includes1 . A l l o w a n c e s 2. House revert allowance3. Traveling concession
4. Commission for sale or business does not include bonus, gratuity provident
fund etc.WorkmanA n y p e r s o n e m p l o y e d i n a n i n d u s t r y t o d o a n y
m a n u a l a n d u n s k i l l e d , s k i l l e d , t e c h n i c a l , operational Clerical or
supervisory work for hire or reward whether the terms of
employment be express or implied, and for the purpose of any proceeding under
1.D Act in relation to q1 . D i n c l u d e s a n y s u c h p e r s o n w h o h a s b e e n
dismissed discharged
or re tre n ch me n t in c o n n e c t i o n w i t h o r a s a c o n s e q u e n c e o f t
hat dispute or whose dismissal discharge or retrenchment
has led that dispute, but does not include Navy, police,
m a n a g e r i a l , administrative position holders or working with wages exceeding
one thousand six hundredrupees per monthQuestions1. Defi ne
industrial relations?2. Explain industrial dispute?3. What is unfair
labour practice?4. Give suggestion for improvement
of Industrial Relations.5. What is Industrial Relations personal relations?
1 . 9 S u m m a r y In this chapter we see, what is dispute in
industrial atmosphere? We come across diff erentdefi nitions connected
with Industrial Relations, 1.D etc We study the reason for
industrialconflict and try to find a solution1.9 SuggestionIn this we have to go
through diff erent defi nitions given and relate it at various levels.
1.R and 1.D is explained fully and we have to go through these several points
given to understandrest of the chapter