Industrial Relations

(Concept & Background)

 Introduction
• Industrial relations are as old as industry.
• With the passage of time, industrial relations have become one
of the most delicate and complex problem of the modern
world.
• Industrial relations is used to denote the collective relationship
between the management and the workers.
• The two terms, labor-management relations and employer-
employee relations are synonymously used.
 Definitions..!!
• According to Bethal, “Industrial relations is that part of
management which is concerned with the manpower of
the enterprise”.

• According to Tead & Metcalfe, “Industrial relations is

the composite result of the attitude and approaches of
employers, and employees towards each other with
regard to planning, supervision, direction and
coordination of the activities of an organization with a
minimum of human effort and frictions with an
animating spirit of cooperation and with proper regard
for the genuine well-being of all members of the
organization”.
• According to J.Henry, “Industrial relations is an art, the art of
living together for purpose of production”.

• As per H.A. Clegg, “The field of industrial relations includes

the study of workers and their trade unions, management,
employers’ associations, and the state institutions concerned
with the regulation of employment”.
 Nature of Industrial Relations
• Industrial relations in the modern times call for an
inter-disciplinary approach to their study.

Economics Sociology Education

Social
Technology History
Psychology

Cultural Political
Anthropology Law
Science
 Nature of Industrial Relations
• Industrial relations are multidimensional in nature
and are conditioned with three sets of determinants,
namely,

Institutional Economic
Factors Factors

Technological
Factors
 Two dominate aspects of Industrial
relations
• Cooperation: The dynamic cooperation lies in the
recognition of a sphere of common interest. Cooperation
between union and management, the two actors in the
industrial relations drama, differently in economic power,
wealth and education, depends primarily on their ability and
willingness to make contacts at point of mutual concern.

• Conflict: Some degree of conflict between the management

and the union is taken to be inevitable. It is not always
considered to be bad but do have a constructive aspect too.
Parties in Industrial Relations
Overall Structure of Industrial Relations
 Industrial relations system (2)

Political Other levels of the

Environments Legal industrial relations Environments
Government and State Agencies
‘system’

Economic Attitudes
structure Values
Roles
Interests
Social
Cultural

Organisational Power Organisational

hierarchy of hierarchy of
Choice
management management

Industrial relations system (1)

Power
Attitudes Power Rule-making process Choice Attitudes
Values Choice Values
Interests Interests
Internal rules

Output
(substantive rules) Input
(conflict)
Roles Roles
Control/ Power
order Disorder

Productive system

Market Technology

Environments
 Objectives of Industrial Relations:
1. Good labor-manager relations depends on emphasis and trade
unions being able to deal with their mutual problems freely,
independent and responsibility.
2. Collective bargain is considered as a corner-stone of good
relations, the legislative framework of industrial relations
should facilitates the maximum use of the process of mutual
accommodation.
3. The workers and employers’ organization should be desirous
of associating with government agencies in consideration of
general, public, social and economic measures affecting
employers’ and workers’ relations.
4. To check industrial conflict and minimize the occurrence of
strikes, lockouts and gheraos.
Significance of good Industrial relations:

Industrial Fair benefits

Peace to workers

Higher Higher
Productivity Morale

Collective Facilitation
Bargaining of Change
Factors Affecting Industrial Relations

Institutional
Factors

Global Factors Economic Factors

Factors

Psychological Factors Social Factors

Technological
Factors