ir concepts

8/7/2019 IR Concepts

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INDUSTRIAL RELATIONS CONCEPT

In the pre-industrial society, agriculture was the major source of wealth. Production was

mainly based on crude farming tools. All the factors of production i.e. labour and capital

was tied up with land. Only those who had control over these three factors had

economic power.

Transformation started in the society, with the industrial revolution, from the latter half of

the 18th century, starting from Great Britain to India by the end of that century. The most

important change was that capital became the critical factor of production.

Industrialisation brought about drastic changes in the working methods and manpower

management relations in the workplace.

The technological advancements also led to the factory system and thereby to the

emergence of two distinct classes, viz, the capitalist class and the working class.

The capitalist class provided the important input of production machinery, means ofproduction and premises and the workers supplied labourand were mainly untrained,

uneducated and unorganized.

The trends in the early stages of industrialization were:

y Loss of freedom Unlike in previous domestic industries, working in factories

involved strict discipline and less freedom. The workers didnt have much say in

matters like working conditions, rest intervals, holidays, wages etc.

y Unhygienic working conditions Attention was not paid to the health and safety

of the workers and the working conditions were mostly unhygienic and unhealthy.

y Employment of children There was exploitation of children due to economic

necessity and they also worked in unhygienic working conditions.

Apart from these changes, the outlook and philosophy of the employer also influenced

the industrial relations.

In the early 19th century, the doctrine oflaissez faire was in vogue,

What Does Laissez Faire Mean?The phrase is French and literally means "let do", but it broadly implies "let it be", or

"leave it alone."

In economics, laissez-faire means allowing industry to be free from state intervention,especially restrictions in the form of tariffs and government monopolies. It is aneconomic theory from the 18th century that is strongly opposed to any governmentintervention in business affairs.


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People who support a laissez faire system are against minimum wages, duties, and anyother trade restrictions. An economic doctrine that opposes governmental regulation ofor interference in commerce beyond the minimum necessary for a free-enterprisesystem to operate according to its own economic laws.

The laissez faire slogan was popularised by Vincent de Gournay,in the 1750s. Gournay

was an ardent proponent of the removal of restrictions on trade and the deregulation of

industry and economic prosperity in France. Although Gournay left no written tracts on

his economic policy ideas, he had immense personal influence on the thinking of his

contemporaries, notably the physiocrats, who credit both the laissez-faire slogan and

doctrine to Gournay and strongly supported by Adam Smith and John Stuart Mill. Widely

accepted in the 19th century, laissez-faire assumed that the individual who pursues his

own desires contributes most successfully to society as a whole. The function of the

state is to maintain order and avoid interfering with individual initiative.

Important features oflaissez faire:

(i) Freedom to Contract: - The parties to a contract were free to lay down terms

and conditions of contract without any intervention from third party. Normally

the weaker party i.e. the labourers have to accept the dictate of the stronger

party. Government or workers unions intervention was rigidly opposed.

(ii) The Dynamics of Market:- This doctrine believed that dynamics of market

revolves round economic forces. The forces of demand and supply that

operates in the market decides determine the price as well as the labour

market. Thus if the supply of labour exceeds demand the wages of workerswere low. Any interference regarding wages either from government or unions

was opposed.

(iii) The Pursuit of Self-Interest This doctrine believed that pursuit of self

interest served the best interest of everyone. There interference by any other

party would adversely affect their interest.

In the late 19th century, the industrial relations system started shaping up, due to

new managerial techniques, work complications etc. The popularity of the

laissez-faire doctrine waned when it proved inadequate to deal with the social and

economic problems caused by industrialization.

Human Resources became an important factor of production. This led towards the

development of welfare of the workforce and good industrial relations.


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INDUSTRIALIZATION:

The Industrial Revolution was a period from the 18th to the 19th century where major

changes in agriculture, manufacturing, mining, and transport had a profound effect onthe socioeconomic and cultural conditions starting in the United Kingdom, thensubsequently spreading throughout Europe, North America, and eventually the world.The onset of the Industrial Revolution marked a major turning point in human history;almost every aspect of daily life was eventually influenced in some way.

Starting in the later part of the 18th century there began a transition from manual labourand draft-animalbased economy towards machine-based manufacturing.

The first Industrial Revolution, which began in the 18th century, merged into the SecondIndustrial Revolution around 1850, when technological and economic progress gained

momentum.

Effects of Industrial Revolution:

The Industrial Revolution brought severe consequences to society. Factory owners,needing cheap, unskilled labor, profited greatly by using children and women to run themachines. By the age of 6, many children were already working 14 hours a day infactories! These children had no free time to do anything else and earned low wages.Some got sick and died because of the toxic fumes, while others were severely injuredand sometimes killed working at the dangerous machines in factories. Obviously, theIndustrial Revolution had both good and bad sides.

In terms of social structure, the Industrial Revolution witnessed the triumph of a middleclass of industrialists and businessmen over a landed class of nobility and gentry.

Ordinary working people found increased opportunities for employment in the new millsand factories, but these were often under strict working conditions with long hours oflabour dominated by a pace set by machines. However, harsh working conditions wereprevalent long before the Industrial Revolution took place. Pre-industrial society wasvery static and often cruelchild labour, dirty living conditions, and long working hourswere just as prevalent before the Industrial Revolution.

Factories and Urbanisation - Industrialisation led to the creation of the factory. Thefactory system was largely responsible for the rise of the modern city, as large numbers

of workers migrated into the cities in search of employment in the factories. Some

industrialists themselves tried to improve factory and living conditions for their workers.

One of the earliest such reformers was Robesrt Owen.


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Child labour - The Industrial Revolution led to a population increase, but the chance of

surviving childhood did not improve throughout the industrial revolution. Employers

could pay a child less than an adult which made child labour the labour of choice for

manufacturing in the early phases of the Industrial Revolution between the 18th and

19th centuries. Many children were forced to work in relatively bad conditions for much

lower pay than their elders. Child labour had existed before the Industrial Revolution,

but with the increase in population and education it became more visible.

The public outcry, especially among the upper and middle classes, helped stir change inthe young workers' welfare.

Housing - Living conditions during the Industrial Revolution varied from the splendour

of the homes of the owners to the squalor of the lives of the workers. Poor people lived

in very small houses in cramped streets. Disease was rampant. The Industrial

Revolution created a larger middle class of professionals such as lawyers and doctors.

The conditions for the poor improved over the course of the 19th century because of

government and local plans which led to cities becoming cleaner places.

Luddites - The transition to industrialisation was not without difficulty. A group of

English workers known as Luddites formed to protest against industrialisation and

sometimes sabotaged factories.

Unrest continued in other sectors as they industrialised, such as agricultural labourers inthe 1830s. Threshing machines were a particular target, and rick burning was a popularactivity. However the riots led to the first formation of trade unions, and further pressure

for reform.

Organisation of labour - The Industrial Revolution concentrated labour into mills,

factories and mines, thus facilitating the organisation ofcombinations or trade unions to

help advance the interests of working people. The power of a union could demand

better terms by withdrawing all labour and causing a consequent cessation of

production. Employers had to decide between giving in to the union demands at a cost

to themselves or suffer the cost of the lost production. Skilled workers were hard to

replace, and these were the first groups to successfully advance their conditions

through this kind of bargaining.

The main method the unions used to effect change was strike action. Many strikes werepainful events for both sides, the unions and the management. I

Working people also formed friendly societies and co-operative societies as mutualsupport groups against times of economic hardship. Enlightened industrialists, such asRobert Owen also supported these organisations to improve the conditions of theworking class.


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Standards of living

The change of living conditions during the industrial revolution has been verycontroversial, but the general consensus was that the bulk of the population, that wasat the bottom of the social ladder, suffered severe reductions in their living standards.

But during the period 1813-1913 there was a significant increase in worker wages.

Other changes due to indusrialisation

The application of steam power to the industrial processes of printing supported amassive expansion of newspaper and popular book publishing, which reinforced risingliteracy and demands for mass political participation.

The growth of modern industry from the late 18th century onward led to massiveurbanization and the rise of new great cities, first in Europe and then in other regions, asnew opportunities brought huge numbers of migrants from rural communities into urban

areas.

Impact of Industrial Revolution

1. Elimination of physical labour.- Due to increase in sophisticated technology,machine replaced human labour in performing many heavy and strenuous tasks.This had both favourable and unfavourable influence on the level of employment.The workers were freed from most of the heavier and unpleasant tasks and theworking conditions in the plants also improved. But since fewer people wererequired to perform due to increased automation, it also resulted in increasedemployment .

2. Mass production at low cost With the help of technology, mass productioncould be carried out more efficiently at a lower cost. This resulted in increasedquantity and improved quality of goods produced.

3. Specialisation of functions Modern industrial work required more specialistsat every level and consequently the demand for semi-skilled or unskilled workersreduced considerably. This created problems in effective HR planning.

4. Elaborate control mechanism/Reduction in work skills/ Sense of alienation The highly automated industries required more control mechanism so as tomonitor the work to be carried out effectively. Too many checks, control and strictdisciplined also has an adverse affect in their work behavior and motivation. Toomuch of automation and mechanization also reduces requirement of skills and

the work becomes repetitive and monotonous. This gives a feeling of alienation,dissatisfaction etc which again affexts their productivity and morale.5. Hard work and higher capital formation Industrialisation has led to increased

capital formation which in turn boosts the economy of the country. This not onlyaffects the workers but also the social and political system of the country.

6. Evolution of entrepreneurial elite The increase of large scale industries ledto the emergence of 2distinct classes the owners and the workers, each withtheir own philosophy and attitude, radically different from each other.


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7. Interdependence The mechanization of work led to more interdependenceand inter relation tasks. Thus a problem or breakdown causes the wholeassembly line to come to a standstill which ultimately affects the profitability ofthe organization.

8. Unhygienic harsh working conditions and living conditions One of the

most degrading impact of industrialization on workers is that they were forced tolive and work in utmost unhygienic human conditions including females andchildren. Though with the passage of time, the system gradually changed interms of improvement in the working and living conditions of the workers.

9. Increased mobility With standardization of work methods, increasededucation and training, there was an increase in both geographical andoccupational mobility.

INDUSTRIAL RELATIONS

History - Industrial relations has its roots in the industrial revolution which created the

modern employment relationship by spawning free labor markets and large-scaleindustrial organizations with thousands of wage workers. As society wrestled with thesemassive economic and social changes, labor problems arose. Low wages, long workinghours, monotonous and dangerous work, and abusive supervisory practices led to highemployee turnover, violent strikes and the threat of social instability. Intellectually,industrial relations was formed at the end of the 19th century.

Industrial relations was formed with a strong problem-solving orientation thatrejected both the classical economists laissez faire solutions to labor problemsand the Marxist solution of class revolution.

Concepts and approaches of Industrial Relations-

Industrial Relations is a multidisciplinary field that studies the employment

relationships.It can be defined as the relations between management and union, or

between representatives of employees and representatives of employers i.e. it

represents all aspects of employment relations within the organizational settings.

Industrial Relations also includes the processes through which these relationships are

expressed

The term Industrial Relations comprises of 2 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.


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Industrial Relations is an art of living together for purposes of production and/or

services. It applies knowledge derived from the principles of many disciplines:

economics, law, human/industrial psychology, anthropology, sociology, social work etc.

Two Dominant Aspects of Industrial Relations

Two important aspects of the industrial relations scene in a modern industrial society :

1. Cooperation - Modern industrial production is based upon cooperation between

labour and capital. Here labour stands for the workers who man the factories,

mines and other industrial establishments or services. Capital stands for the

owners of business enterprises who supply the capital and own the final

products.

2. Conflict - The second aspect of the system of industrial relations today is, the

existence of conflict. Conflict, like cooperation, is inherent in the industrial

relations set up of today. It becomes apparent when industrial disputes

resulting in strikes and lockouts become frequent.

Industrial Relations encompasses all such factors that influence behavior of

people at work. A few such factors are:

Institution:It includes government, employers, trade unions, union federations or

associations, government bodies, labor courts, tribunals and other organizations which

have direct or indirect impact on the industrial relations systems.

Characters: It aims to study the role of workers unions and employers federations

officials, industrial relations officers/managers, mediators/counselors/arbitrator, judges

of labour court, tribunals etc.

Methods:Here the focus is on collective bargaining, workers participation in the

industrial relations scheme, discipline procedure, grievance redressal machinery,

dispute settlement machinery, union reorganization, organization of protests through

methods like revision of existing rules, regulations, policies, procedures, hearing of

labour courts, tribunals etc

Contents: It includes matter pertaining to employment conditions like pay, hours ofwork, leave with wages, health and safety, disciplinary actions, lay-offs, dismissals,

retirements etc, laws relating to such activities, regulations governing labour welfare,

social security, industrial relations, issues concerning workers participating in

management, collective bargaining etc.


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Industrial Relation from various points of view:

y Managements point ofview: Their aim is to achieve the best results/ outcomes

with least inputs, improve return on capital and wages, working conditions of

workers and offer incentives to managers to strive for continuous improvement in

relations and mutual cooperation between employers and employees.y Workers/trade unions point ofview- Their aim is to improve wages and working

conditions, gain control over work, secure redressal of grievances and at times even

pursue political actions.

y Governments point ofview- Their aim is to develop sound labour managementrelations for realizing the goals of economic and social development.

Industrial relations has three faces

Science building Problem solving Ethical

a. In the science building face, industrial relations is part of the social sciences,and it seeks to understand the employment relationship and its institutions

through high-quality, rigorous research in the field of labor economics, industrialsociology, labor and social history, human resource management, politicalscience, law, and other areas.

b. In theproblem solving face, industrial relations seeks to design policies andinstitutions to help the employment relationship work better.

c. In the ethical face, industrial relations contains strong principles about workersand the employment relationship - especially the rejection of treating labor as acommodity in favor of seeing workers as human beings, entitled to human rights


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Industrial relations in India

(General scenario- With the emergence of factories, cottage industries were thrown inback gear, compelling a lot of workers to leave their farms and become wage earners infactories with meager wages and poor working conditions. With passage of time a

substantial population concentrated in industrial centres and this population was broadlycharacterized by haves and have nots. Both had radically different interests andideologies. This led to development of unions to further their causes. The governmentlater came to the scene to regulate working conditions, wages etc.)

a. Industrial Relations: Organized sector and their impact on unorganizedsector-There was a rapid transformation from the agrarian system to anindustrial one. But of the total population only 37% are in the workforce of whichonly about 25.5 % are in the organized sector. But the patterns of IndustrialRelations has a definite impact on labour-management relations in theunorganized sector. The trends and patterns established in the organized sectors

spills over as there is always pressure on unorganized organizations to match itsemployment, working conditions, benefits etc with that of organized sector.b. Unions are important force in the Indian political scenario-Unions are

sometimes a fall out of the political system and is used for electioneeringpurpose. Also unions sponsored by ruling parties has an influence on thelegislative process through their intense lobbying. Strong national level unionsare consulted by government in formulating various socio-economic policieswhich in turn influences the system of industrial relations.

c. Varying patterns of Industrial Relations in India The IR patterns vary notonly in unorganized and organized sector but also within the latter. Due to nonunionization in the unorganized sectors the grievances are at times redressed by

threats of dismissal or other violent forms, thus the problem of IndustrialRelations is not allowed to surface.d. Changing dynamics of Industrial Relations in India Initially with the

adoption of socialistic pattern of society and subsequent acceptance of Industrialpolicy, the public sector was entrusted with the responsibility of acceleratingeconomic development and growth in the country. There were many constraint inthe growth and development of the private sector. The industrial relationsscenario was poor in the private sectors and the employees had to suffer in thehands of the employers. The employees of public sector got a better deal. Withthe liberalization of the Indian Economy, the labour-management relations arenow improving in the private sectors and getting strained in the public sector.

Scope of Industrial Relations: Apart from Industrial relations, industrial life also createsa social relationship which regulates the relations and working of a wider variety ofpeople directly or indirectly.


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Industrial Relations thus includes

i. Labour relations : relations between union and management.ii. Employer-employee relations : relations between management and

employees.

iii. Group relations: relations between various groups of the working peopleiv. Community or public relations: relations between industry and society.

No. i and ii are generally used synonymously and iii and iv form part of the discipline Sociology.

Aspects of industrial relations

1. Development of healthy labour-management relations Presence of astrong, well organized, democratic and responsible trade unions help inenhancing job security of employees, increase in workers participation in

management etc which lead to better labour management relations2. Maintenance of industrial peace This can be nurtured by setting upmachineries for prevention and settlement of industrial disputes (developingvarious legislative and administrative enactments), government should have thepower to refer disputes to adjudication when there is a major crises, governmentshould enjoy power to maintain status quo, to be exercised if after referring toarbitration, either party refuses to comply, and the provision of bipartite andtripartite forums for settlement of disputes.

3. Development of Industrial Democracy where the labour has the right to beassociated with the management of an industry. Techniques to achieve thisobjective establishment of shop councils and joint management councils at the

floor and plant level, recognition ofHuman Rights in Industry, increase in labourproductivity and availability of proper work environment.

Participants in Industrial Relations

The Industrial Relations System is an organisation of recognised major variableswhich exert a controlling influence on industrial relations. On this basis there arethree major variables (participants) in industrial relations:

i)W

orkers and their Organisations: Here, the emphasis is on the members oforganisations, the personal characteristics of workers, their cultural andeducational attainments, qualifications, skills and attitudes to work, etc.

ii) Managers and their Organisations:Here, the emphasis is on the work groups,teams, the variations in their sizes, composition and the extent of specialisationthey impose. Provision is made for internal communication, for the structure ofstatus and authority and for such ancillary organisations such as trade unionsand employers associations.


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iii) Role of the Government:Here the emphasis is on the role and responsibilitiesof governmental agencies, the extent of official intervention, assistance andregulation of working conditions and working communities.

Change In the Role Of The Three Actors

1. Management The Exploitative Authoritarian system Benevolent Authoritarianism Consultative Style Participative Style

2. Workers Unions Sectional Bargainers Class Bargainers Ascent of the State Partners in Social Control

Enemy of the System

3. The Government - The third actor is the Government. The Government may

assume any of the following roles.

Laissez-faire Philosophy Paternalism Tripartism Voluntarism Interventionism

The three actors in the system interact with each other to yield the basicoutput i.e. set of rules that govern working conditions and terms ofemployment.

Factors that affect Industrial Relations-

1.Institutional Factors like state policy, labour laws, collective bargainingagreements, labour unions, employers federations etc

2. Economic Factors like economic organizations( socialist, communist,capitalist), type of ownership (individual, company domestic, MNC, government,cooperative ownership), source of labour supply, disparity of wages between groups,level of unemployment etc

3. Social Factors These factors like caste, creed, status are loosing importancewith the acceleration of industrialization but cannot be ignored.


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4. Technological Factors like work methods, type of technology used, etc asthese factors influence employment status, wage level, etc

5. Psychological Factors like owners attitude, perception of workforce, workersattitude, their motivation, morale, interest, dissatisfaction etc has an important impact

in the industrial relations

6. Political Factors like system of government, political philosophy, attitude ofgovernment towards labour problems etc. IR are largely shaped by the amount ofinvolvement of political parties in trade union activities.

7. Enterprise related Factors like style of management, its values, organizationalclimate, competition, adaptability to changes, HR policies etc

8. Global Factors like international relations, global conflicts, economic andtrading policies of power blocks, international trade agreements, International labour

agreements.

BASIC CONCEPTS AND VALUES THAT GOVERN SOUND INDUSTRIALRELATIONS

y Equity & Fairness Equity/ fairness refer to equal treatment to one and allunder comparable circumstance in industrial relations.

y Power & Authority Power is the ability to influence, impose or control. Itimplies use of force. Its various aspects are power to reward/ punish/ coerce

others, position power, expert power due to knowledge/experience/skills,associational power through membership in unions/coalitions/networking etc.Authority is the right to expect and command obedience.

y Individualism & Collectivism The fundamental basis of a democratic societyis the freedom of the individual. In an employment relationship, collectivist basismay negate or limit an individuals freedom.

y Integrity, Trust & Transparency Integrity is adhering to what is professional,Trust is established between and among people. Transparency is promotedthrough sharing of information, openness in communication, willingness toexplain and reason out the motives behind decisions and actions.


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SUBSTANCE OF A SOUND INDUSTRIAL RELATIONS SYTEM

y The structure of the economy and labour market

y Constitutional provisions, legal frameworks & labour standards ( international &national, statutory & voluntary)

y The structure of trade unions and employers organizations, their linkages,attitudes & approaches.

y The nature and degree of government intervention

y Policies on industrial relations at international, national, industry, firm andworkplace level.

y Labour market policies, labour law administration, dispute relation mechanismetc.

y Collective bargaining and workers participation.

ATTRIBUTES OF A SOUND INDUSTRIAL RELATIONS SYSTEM

y Harmonizes the interests of ecologically sustainable economic growth with socialprogress and justice

y Generates productive employment

y Contributes to improvement in the productivity and quality of goods/services ateconomic/competitive/cost prices

y Improves the well-being and quality of life of workers and their families.

BASIC REQUIREMENTS FOR A SUCCESSFUL INDUSTRIAL RELATIONSPROGRAMME:

1. Top Management Support

2. Sound Personnel Policies

3. Adequate Practices should be Developed by Professionals

4. Detailed Supervisory Training

5. Follow up of Results

6. Relationship Building/Culture Building Long term


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Theoretical perspectives-Industrial relations describes three major theoreticalperspectives regarding the understanding and analysis of workplace relations. Eachview offers a particular perception of workplace relations and interprets workplaceconflict, the role of unions and job regulation differently.

The three views are 1 Unitarism, 2.Pluralist 3.Radical.

1.Unitarist perspective - In unitarism, there is only one source of authority;

management. They own and therefore control. The organization is perceived as an

integrated and harmonious whole with the ideal of "one happy family", where

management and other members of the staff all share a common purpose with mutual

cooperation. Unitarism is based on the assumption that an organization is composed of

a group of people under a single, unified loyalty structure. It thus has a paternalistic

approach where it demands loyalty of all employees, being predominantly managerial inits emphasis and application.

Consequently, trade unions are deemed as unnecessary and avoidable since the loyaltybetween employees and organizations are considered mutually exclusive, where therecan't be two sides of industry. Conflict is perceived as irrational, disruptive and thepathological result of agitators, interpersonal friction and communication breakdown.

Employers and management find the unitary perspective attractive as it legitimizes theirauthority to govern. This perspective is outmoded.

2.Pluralist perspective- This is based on the assumption that the organization is

composed of individuals who make up distinct sectional groups, each with its own

interests, objectives and leadership. In particular, the two predominant sub-groups in

the pluralistic perspective are the management and trade unions. Consequently, the

role of management would lean less towards enforcing and controlling and more toward

persuasion and co-ordination.

This perspective sees conflicts between management and employees as rational and

inevitable. Trade unions are deemed as legitimate representatives of employees to

collectively safe guard their interests. Conflict is dealt by collective bargaining, which

can influence job regulations/control and achieve a balance of power between

management and trade unions.

All interest groups have their say and both the parties strive to exercise economic(

wages & benefits) as well as political (control) power. Hence pluralist is about mutuality

and the reciprocal influence of management over trade unions and workers.


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a. In the workplace, pluralists therefore champion grievance procedures,employee voice mechanisms such as works councils and labor unions,collective bargaining, and labor-management partnerships.

b. In the policy arena, pluralists advocate for minimum wage laws,occupational health and safety standards, international labor standards, and

other employment and labor laws and public policies

These institutional interventions are all seen as methods for balancing the employmentrelationship to generate economic efficiency and employee equity.

3.Radical perspective-This is based on the notion that the production system is

privately owned and is motivated by profit. Radical theories are strongly identified with

Marxist theories and the radical perspective is sometimes referred to as the "conflict

model". This perspective sees inequalities of power and economic wealth as having

their roots in the nature of the capitalist economic system. Conflict is therefore seen as

inevitable and trade unions are a natural response of workers to their exploitation by

capital. They favour transformation of trade unions into revolutionary organizations.

Approaches to Industrial Relation: Industrial relations can be viewed as a

eclectic system composed of group of people and organizations working with varying

viewpoints. It can be viewed from various angles ranging from economic, social,

political, psychological, and managerial A few of the approaches are:

1.THE SYSTEMS APPROACH TO INDUSTRIAL RELATIONS

Dunlop considered industrial relations a subsystem of society divided the system intofour interrelated elements comprising of certain actors, certain contexts, an ideologywhich binds the industrial relations system together and a body of rules created togovern the actors at the workplace. This approach is helpful in studying the industrialrelations as it focuses on participants in the process, environmental forces and the otherinter relations within the IR system.

Dunlops framework of Industrial Relations System.

Inputs Processes Outputs

Actors

Environmental Rules

Contents

Ideology

Bargaining

Conciliation

Arbitration

Lawmaking etc


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y The actors: They are (i) managers and their representatives, (ii) workers andtheir organizations and (iii) specialized government agencies concerned withworkers, enterprises and their relationships. The first two are directly related toeach other.

y The environmental contents: (i) technological characteristics of the workplace

(ii) the product and factors market or budgetary constraints that impinge on theactors (iii) the locus and distribution of power in the larger society

y The ideology: These are a set of ideas and beliefs commonly held by the actorsthat helps to bind or integrate the system as an entity.

y The network of rules: The result of all the interaction within the system, leads toestablishing rules like countrys labour policy, labour agreement etc and decidingtheir application so that the workers gat a fair deal.

All these factors are critical in an industrial relations system and may be expressed in avariety of forms: regulations & policies of management , decrees, decisions, awards, ororders of government agencies, collective bargaining agreements, customs and

traditions of workplace & work community etc. These rules may be incorporated in anumber of these forms, they may be written, in oral form or customary practice.

Some limitations of the systems framework: With liberalization and growingenvironmental concerns, apart from managers, workers and governments, consumersand communityalso plays a critical role in IR processes and outcomes. Alsobehavioral aspects like human motivations, preferences etc have been ignored.

2. PSYCHOLOGICAL APPROACH TO INDUSTRIAL RELATIONS:

Psychologists associated the problems of industrial relations with the perceptions and

attitudes of the focal participant: labour & management. Mason Harie conducted a test

on both the groups and concluded that

a. The general impression about a person is radically different when he is seen as a

representative of management from that of the person seen as a representative of

labour.

b. The management and labour see each other as less dependable

c. Both parties see each other as deficient in terms of emotional characteristics andinter personal relations.

These variance is due to their individual perception. The conflicts between management

and labour occur mainly because each group negatively views/ perceives the behavior

of the other. This leads to strained inter-personal and inter-group relations breeding

disharmony and during conflicts not only their interest but also personalities are at

stake.


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3.SOCIOLOGICAL APPROACH TO INDUSTRIAL RELATIONS:

The industry is a social world comprising of a community made up of individuals with

differing personalities, varying educational background, family breeding, emotions etc.Various sociological factors like value system, customs, norms of both labour and

management affect the industrial relations and their work behavior is largely influenced

by these factors.

Moreover social consequences of industrialization like social mobility, migration

generates many social evils like family disintegration, stress & strain, delinquency,

personal & social disorganization leading to vices like drinking, gambling, drug abuse

etc. These affect the efficiency and productivity of the workers and influences Industrial

Relations.

Whenever industrialization gains momentum, consequently new social patterns emerge

along with new relationships, institutions, behavioral patterns and techniques to handle

human resources develop.

All these shape the industrial system. With the passage of time the profile of the

industrial worker has changed and he has become more urban in outlook, no longer

unskilled or neglected by society and is more secure in his employment. Management

also gives importance on the use of behavior techniques while dealing with the human

side of the enterprise and the flow of authority, power or control has become more

democratized. Sociologically, in the process of change, industrial relations are

becoming more complex.

4.HUMAN RELATIONS APPROACH TO INDUSTRIAL RELATIONS:

This approach deals with the most delicate area i.e. humans who have their own

emotions, perceptions, attitudes, personality etc. These factors makes them complex

individuals and when they interact with each other their complexity multiplies.

The problems of industrial relations rises when they are not properly managed both at

individual and group level.

The human resource management policies relating to leadership and motivation has aprofound influence on work behavior. E.g. autocratic style may lead to dissatisfaction

and demotivate people to work.

Another important factor to maintain good human relations and industrial relations is the

study of human need and the satisfaction of these needs. The 4 basic needs are

physiological, safety & security, social and egoistic needs. Each higher orger need


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arises once the lower order needs are satisfied. Though no specific diagnosis can be

made, but the management should try to design a suitable motivational strategy to

provide their optimum need satisfaction required to maintain good human relations.

Application of techniques oh human relations will lead to good industrial relations.

y The workers will have greater job satisfaction, develop greater involvement in

their work, and can identify their objectives with that of the organization.

y The manager will develop a greater insight and effectiveness in his work.

5.SOCIO-ETHICAL APPROACH TO INDUSTRIAL RELATIONS:

This approach holds that industrial relations besides having a sociological base also has

some ethical ramifications. Good industrial relations can be maintained when both the

labour and management realize their moral responsibilities and work through mutual

cooperation and greater understanding of each others problems.

6.GANDHIAN (TRUSTEESHIP) APPROACH TO INDUSTRIAL RELATIONS:

Gandhijis views on industrial relations are based on his fundamental principles of truth,

non violence. And non possession. This philosophy presumes the peaceful coexistence

of capital and labour and call for the resolution of conflict by non violent, non

cooperation peaceful strikes to be resorted only if the employers fail in their moral

appeals.

The principle of trusteeship holds that though the capital legally belongs to the owners,

morally it belongs to the society. A trustee is one who holds property in trust for

another/others. For Gandhiji, this is an application of the law of God to human society

and human institutions.

In case of conflict Gandhiji advocated-

y The workers should seek redressal of reasonable demands only through

collective action

y If they have to organize strikes, it should be peaceful and non violent.

y Strikes should be avoided in industries of essential services

Indias industrial relations system has been largely influenced by Gandhian thought.

There is an emphasis on peaceful settlement of industrial disputes and the government

expects the parties to resolve their disputes peacefully and stresses on mutual

negotiations. In case the parties desire to refer their disputes to arbitration, it is

imperative that the trade unions serve a 14 day notice of strike to the employers

ir concepts

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