HRM

UNIT 03-PART IINDUSTRIAL RELATIONS

Instructor:Surojit Chakraborty

School of HumanitiesKIIT University

Primary sources: Mamoria, Mamoria & Gankar; B.D. Singh

Modules

Concept & Meaning

Objective & Importance

Reason for Poor Industrial Relations

Industrial Relations: what it is

The term “industrial relations” is made up of two words-“industry” and “relations”.

“industry” means any systematic activity carried on by co-operation between an employer and his workmen for the production, supply or distribution of goods or the rendering of material services with a view to satisfy human wants. (State of Bombay v. Hospital Mazdoor Sabha, 1960)

“relations” refers to the workplace relationships between workmen and employers, between workmen and workmen, between employers and employers; as well as the relationships that the employers and workmen share with the institutions formed to promote their interests.

Dunlop’s System Theory

IR = f (a, t, m, p, i)

Where, a -> three actors shown in fig. 1

t -> technological context

m-> market context

p-> power context

i-> ideological context that binds them together

Government

Workmen & their

organizations

Employers & their

organizations

Industrial Relations

Objectives of Industrial Relations

The Industrial Revolution led to the establishment of two distinct classes-the capitalist class and the working class.

Frederick W. Taylor was the first person to bring the workers into the ambit of production decisions with his scientific management principles.

IR got the much needed boost with the human relations revolution in the 1930’s brought on by Elton Mayo’s Hawthorne studies and the Wagner Act (1935).

The objectives of IR are threefold:

i. Promotion of harmonious employer-workmen relations

ii. Maintenance of industrial peace and avoidance of industrial conflicts

iii. Establishment of industrial democracy

Importance of Industrial Relations

i. Resolution of and reduction in industrial disputes

ii. Increased morale of workforce

iii. Reduction in absenteeism and turnover

iv. Remove alienation of workforce

v. Optimum use of scarce resources

vi. Continuous production

vii. Economic growth and development

viii.Facilitates change

Reason for Poor Industrial Relations

i. Economic factors: poor wages & working conditions etc.

ii. Social factors: master-servant relationship etc.

iii. Technological factors: poor rate of technological change etc.

iv. Psychological factors: negative attitude of employer and low workmen morale etc.

v. Political factors: political affiliation of trade unions etc.

vi. Institutional factors: obsolete labour laws etc.

vii.Global factors: international trade and labour agreements etc.

viii.Organizational factors: lack of effective IR policies and practices etc.

N.B. Other issues like negative workmen perception, despotic managers, changes in working conditions, lack of communication and grievance handling mechanisms etc.: all of these will come under one or the other of the 8 factors given above.

Effects of Poor Industrial Relations

Effect on Workmen

i.Loss of motivation and increase in dissatisfaction

ii.Financial losses

iii.Less role in decision making

iv.Adverse effect on career

Effect on Employers

i.Disruption in production

ii.Less Profit

iii.Reduction in worker productivity

iv.Rigid workforce

v.Deviant workplace behaviour

vi.Loss of reputation amongst consumers

Effects of Poor Industrial Relations…contd.

Effect on Government

i.Loss of revenue

ii.Disruption of law and order

iii.Can be held as proof of its inefficiency

Effect on Consumers

i.Rise in prices or worsening of quality or both

ii.Scarcity of goods

Other Effects

i.Adverse effect on international trade

ii.Violation of international agreements

iii.Low rate of economic growth and development

Conclusion

Harmonious industrial relations is of paramount importance for not only the parties directly involved, but also for the society and economy as a whole.

N.B The conditions for good industrial relations will be taken up in a subsequent module

Thank You