Industrial relations.pptx

7/27/2019 Industrial relations.pptx

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UNIT IV

INDUSTRIAL RELATIONS

BBM503


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INDUSTRIAL RELATIONSDefinition and Approaches of

Industrial Relations, Industrial

Conflicts, Industrial Relation Policy.


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Industrial Relations comprises of :

Industry and Relations

Industry relates to productive activity in whichindividual (or a group of individuals) is (are)

engaged.

relations focuses on the relationships which existwithin the industry between the employer and his

workmen.


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Three phases of Industrial relations :

Science building,

Problem solving,

Ethical

In the science building phase, industrialrelations is part of the social sciences and it

seeks to understand the employment

relationship and its institutions through high-quality, rigorous research.


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In the problem solving phase, industrial

relations exist between two camps within

industrial relations when labour markets areseen as imperfect, and when the employment

relationship includes conflicts of interest, then

one cannot rely on markets or managers toserve workersinterests, ...


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.... and in extreme cases to prevent worker

exploitation. Industrial relations practitioners

therefore support institutional interventionsto improve the workings of the employment

relationship and to protect workersrights.


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In the ethical phase, industrial relations see

the employment relationship as a mixture of

shared interests and conflicts of interests thatare limited to the employment relationship in

the workplace. Therefore focuses on

grievance procedures, employee voicemechanisms like works councils and labour

unions, collective bargaining, and labour-

management partnerships.


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about industrial relations outlook

i) broad

ii) narrow. broad outlook include the relationships and

interactions between employers and employees

and covers: employment relationship narrow outlook is more specific and relates to the

study and practice of collective bargaining, and

labor-management relations.


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Basic facts about industrial relations

a) Institutional factors

b) Economic factorsc) Technological factors

Institutional factors includes state policy,labor laws, laborers unions and social

institution like community, caste, joint family,

attitude of work, motivation and influence.


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Economic factors includes organization like

(socialist, capitalist, communist, individualownership, company ownership, government

ownership), power of labor and employers,

Technological factors covers the techniques ofproduction, modernization and capital

structure


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Meaning of IR

Industrial Relation deals with the manpower ofthe enterprise and the management which isconcerned with whether machine operator,skilled worker or manager.

Industrial Relation is a process by which peopleand their organizations interact at the place of workto establish the terms and conditions ofemployment.


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The relationship of employers and workers have

formed to promote their respective interests, and

the relations between those organizations, at all

levels.


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methodsof industrial relations:

collective bargaining between employer and

employee.

participation of workers in the Industrial Relation

schemes.

other -

disciplinary procedure,

grievance readdress machinery ,

dispute settlements,union reorganization,

revisions of existing rules, policies, procedures,

hearing of labor courts, tribunals etc.


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contents:

covers two parts-

one part includes employment conditions

other parts relates to the laws activities


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Institution / Establishment:

direct or indirect impact on the industrial relation

system includes government, employers, trade

unions, unions federations or associations,

government bodies, labor courts, tribunals and

other organizations.


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Objectives of Industrial Relations

Primary objective is to bring about good and

healthy relations between two partners in industry

According to Kirkaldy IR objectives-

improving the economic condition of workers

control by the state over industries to regulateproduction and industrial relations

socialisation or nationalisation of industries

vesting the proprietorship of the industries in

the workers


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1. to safeguard the interest of labor and management

2. to avoid industrial conflict or strife3. to raise productivity to a higher level

4. to establish and maintain the growth of an

industrial democracy5. to bring down strike, lockout

6. to establish government control


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current industrial relation issues

minimum wages

flexible/performance pay

cross-cultural management

dispute prevention

industrial relations/ HRM Training migration


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Suggestions to Improve IR

both should develop constructive attitudes

towards each other.policies, procedures and practices relating to

the employments should be clear to

everybody in the organization.

management should encourage right kind of

union leadership.


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about Industrial Relation (IR) System....

o sound IR system shows the relationships

between management and employeesoother, between them and the state which are

more harmonious and cooperative than

conflictual


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actors in the IR system

employers

employees government


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industrial relations among three actors


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Scope

narrow sense wider sense

in narrow sense, relationship emerges out of theday to day association of the management and the

labour.


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in wider sense, the relationship emerges

between an employee and employer in thecourse of the running of an industry

b i i f i d i l l i


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about main issues of industrial relations....

Collective bargaining

Machinery for settlement of industrialdisputes

Standing orders

Workers participation in management

Unfair labour practices


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Approaches to Industrial relation


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IR is related to class conflict, others perceive it

in terms of mutual co-operation and still others

understand it in terms of competing interests of

various groups. HR managers arc expected to

understand these varying approaches because

they provide the theoretical underpinnings for

much of the role of HRM.'

P ti th i


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Perspective theories

contrast in their approach to the nature of

workplace relations:

Unitary Perspective

Pluralistic-Perspective

Marxist Perspective

I it th i ti i i d


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In unitary, the organization is perceived as an

integrated and harmonious system. A core

assumption of unitary approach is that

management and staff, and all members of theorganization share the same objectives, interests

and purposes.

it i


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unitary view

organization is: a group that united

having same objectives

single authority common value, interest and objectives

managers have the right to manage.

it h f l i t f


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unitary approach from employee point of

view

working practices should be flexible. if a union is recognized, there should be means of

communication between staff and the company.

emphasis is on good relationships and soundterms and conditions of employment.

employee participation in workplace decisions.

skills and expertise of managers should supports

their endeavours.

it h F l i t f


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unitary approach From employer point of

view

staffing policies should inspire and motivateemployees.

organization's objectives should be

communicated and discussed with staff. reward systems should foster to secure loyalty

and commitment.

line managers should take ownership of their

team

unitary perspective


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unitary perspective

assumptions capitalist society integrated group of people within the work organization common values, interests and objectives

nature of conflict and its resolution

irrational and aberrant ( straying from the path) if there is/are conflict, they are Frictional and personal coercion (force) or paternalism (limiting freedom

through regulation)

Role of Trade Unions intrusion from outside historical anachronism (relating to a wrong period) management only forced to accept trade unions in

economic relations

Pluralistic approach to industrial relations


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Pluralistic approach to industrial relations

organization is perceived as being made up of

powerful and divergent sub-groups, with their own

set of objectives and leaders.

Consequently the role of management would less


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Consequently, the role of management would less

towards enforcing and controlling but more toward

persuasion and co-ordination.

Trade unions are deemed as legitimate

representatives of employees, conflict is dealt by

collective bargaining.


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Pluralist: Input-output modeInput Conversion Output

Pluralist perspective


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Pluralist perspective

Assumptions

Post-Capitalist society, where a relatively widespread distribution

of power and authority within the society Differing values, interests and objectives

Competitive authority/loyalty structures (formal & informal)

Nature of conflict and its resolution

Rational and inevitable

Structural and institutionalized

Compromise, negotiate and agreement

Role of Trade Unions

Legitimate and accepted in both economic and managerial

relations Internal and integral to organization

conflict result from industrial and organizational


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conflict result from industrial and organizational

factors.

1. Different roles of mgt. and employees

Mgrs : responsible for efficiency, productivity and

profitability

Employees: more of personal term (better pay,

good working conditions and good job

security.

2 Conflictual behavior result form:


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2. Conflictual behavior result form:

Specific situation (e.g the closure of some part of

organization and change to new technology)

general management principal (to cut cost,

increase profit and productivity)

implications of Pluralistic approach


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implications of Pluralistic approach

The firm should have industrial relations and

personnel specialists

Independent external arbitrators should be used to

assist in the resolution of disputes.

union representatives have an opportunity to carry

out their representative duties

Comprehensive collective agreements should be

negotiated with unions

Marxist Approach to Industrial Relations


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Marxist Approach to Industrial Relations

this looks at the nature of the capitalist society,

where there is a fundamental division of interest

between capital and labour.

This perspective sees inequalities of power and

economic wealth as having in their root.

about Marx argue


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about Marx argue...

Weakness and contradiction inherent in the

capitalist system.

Capitalism would foster monopolies.

Wages would be minimized to a subsistence level.

Capitalists and workers would be in contention towin ground and establish their constant win-lose

struggles

Marxist: Control of the labour process


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Marxist: Control of the labour process

A. Focus

The way capital controls labour

Mechanisms of management control

Scientific management

Segmentation of labour (core & periphery)

Bureaucratic control (policies, procedures & rules)

Responsible autonomy (self-control or adoption of

management values )

Employee response

Resistance (restrictive practices)

Collectivism (joint regulation)

Dunlop's Contribution To Industrial Relations


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Dunlop s Contribution To Industrial Relations

Industrial Relations as 3 group of actors:-

1.workers and their organization,

2.managers and their organization,

3.government and its agencies concerned with

work communities.


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These groups interact with

the technology,

the market or

budgetary constraint .

key factors of Dunlop's model


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key factors of Dunlop s model

economic, technological, political, legal and social

forces which impact employment relationships.

interaction of the key actors in the employment

relationship: labour, management, and

government.

Rules are derived from these interactions that

govern the employment relationship.

significance of Dunlops model to environmental


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significance of Dunlop s model to environmental

forces

management, labour, and the government possess

a shared ideology

provides stability to the system.

model sees IR as a subsystem of society distinct

from but overlapping, the economic and political

subsystem


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Dunlops approach to industrial relationor

system approach to industrial relation

about System


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about System..

A system is a community situated within an

environment. A system is a dynamic and complex,

interacting as a structured functional unit.

A system is a combination of parts andsubsystems. Each part may have different

subparts. Parts and sub parts of the system are

mutually related to each other.

Basic components of system


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Basic components of system

Internal inputs (goals, values, power of the

participants (actors) in the system are conditioned

by the flow of effects from environmental

subsystems (external inputs)

The processes or complex of private and public

activities for converting inputs into outputs

The outputs, comprising the material, social and

psychological rewards employees receive in

rendering their services; and

feedback loop through which the outputs flow


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feedback loop through which the outputs flow

directly into the industrial relations system

itself and also into the environmental

subsystem.

System Approach of industrial labor relations was


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y ppput by john Dunlop in 1950s. this approachfocuses on

Participants in the process

Environment forces

Output

(none of these institutions can act in an autonomous or

independent, unless they are shaped at least to some extent bytheir market , technological and political contexts)

Dunlops approach to industrial relations


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Dunlops approach to industrial relations

basic elements of system approach


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b s c e e e s o sys e pp o c

a) Participants in the system

Workers and the organization

Management and their representatives Government agencies

b) Environmental forces (relevant to industrial relations)


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) ( )

Technological characteristics

Market or economic constraints

The locus and balance of power existing in a

society

Technological characteristics


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g

Industrial relations is different in a labor

intensive industry from those of capital

intensive.

Market or economic constraints These influence industrial relations, because the

need for labor is closely associated with the

demand for the products. Existence of competition in market.

The locus and balance of power


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p

This factor in a society in the form of power centers

Workers organizations

The employers

The government

Also influences the relationships between the laborand management

role of government is important part in shaping thepattern of industrial relations

they lead to the formulation of rules of behavior.


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y

(like labor laws, collective agreements, codes etc.

govern the behavior of each of the three parties

participating in industrial relations system.)

Output


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Output

the result of interaction of parties

of the system which is manifested in thenetwork of rules, country labor policy and

labor agreements.


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management, labor, and the government

possess shared ideology, provides stability to

the system.

Industrial Conflict


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the totalrange of behaviours and attitudes that

express from one end opposition and divergent

orientations between industrial owners andmanagers,, and on the other working peopleand their organisations

forms of conflict


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Organised conflict:

- collective in nature, involves groups of

employees or trade unions

- open(or overt),obvious to all that it is occurring

- takes the form of:

- strikes

- lockouts

- overtime bans, working to rule, restrictions

on output

- political action


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Unorganised conflict:

- individual in nature, only involves single

employees

- hidden (or covert), not obvious it is occurring

- takes the form of:

- absenteeism

- labour turnover

- low productivity

- acts of indiscipline and sabotage

Theories of industrial conflict


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eo es o dust a co ct

Strikes as a product of industrialisation (1)propounded by Ross and Hartman in 1960

theory Identifies that

(i) as industrialisation advances, labour movementsmature from industrial to political action, and

governments increasingly intervene in economy and

industrial relations

(ii) consequent witheringaway of strikesas unions


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increasingly accommodated in industrial and

political systems(iii) consequent convergence in national industrial

relations systems as a result of industrialisation.


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Strikes as a product of industrialisation (2)propounded by Marx in 1857, Hyman 1975

theory identifies that

(i) industrialisation divides society into classes with

directly conflicting economic interests

(ii) exploitation of workers occurs as wealth is

concentrated in fewer and fewer owners of

means of production

(iii) workers become consciousof their


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exploitation, realise common interests and

organise to resist


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Strikes as a product of institutionalisation(3)

propounded by Dubin (1954)

The theory identifies that

(i) where regulation is unilateralor statutory,there

are more strikes

(ii) where formalised, collective bargaining occurs

(allowing dispassionate airing and orderly

settlement of grievances), there are fewer strikes.

also propounded by Clegg in 1976


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theory identifies that-

(i) the more comprehensive, the dispute

settlement procedures under collective

bargaining, the fewer strikes occur

(ii) plant-level bargaining involves fewer workers,

but more strikes

(iii) industry and national-level bargaining involves

larger numbers of workers in shorter strikes


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Strikes as a product of political factors (4)

propounded by Shorter and Tilly in 1974

The theory identifies highly organized trade

unions, plus low access to the political system

results in high incidence of strikes

also propounded by Korpi and Shalev in 1979


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The theory identifies highly organized trade

unions, plus a high ability to access governmentleads to a low incidence of strikes


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Strikes as a product of the business cycle (5)

propounded by Hansen in 1921

theory identifies that :

(i) in recession, trade unions defend wages and

conditions against employer cost-cutting, so

strikes increase

(ii) in economic booms, trade unions become

offensive to protect real wages against rising

prices, so strikes increase

(iii) when prices neither rise nor fall, the incidence

of strikes is lowest

also propounded by Creigh and Makeham in 1982


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The theory identifies that :

strikes about employer willingness to concede tounion demands

(i) in times of low economic growth and high

unemployment, employers less willing toconcede, leading to more strikes

(ii) in times of high economic growth and lowunemployment, employers avoid disruption bymeeting union demands, leading to fewerstrikes


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Strikes as a product of economic factors (1)

propounded by Davis in 1979

The theory identifies - strikes are result of union

and employer expectations of inflation.

(i) when each sides expectations of inflation are

similar it is easier to reach agreement on

wages

(ii) when each sides expectations are different

because of changing inflation, agreement on

wages is harder and strikes increase


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Strikes as a product of economic factors (2)

propounded by : Hibbs in 1976

The theory emphasises that:

(i) in times of high unemployment, workers are

less willing to go on strike for fear of losing

their jobs

(ii) in times of low unemployment, workers are

more willing to go on strike as a means of

making up lost ground

S f f


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Strikes as a product of social factors

propounded by : Kerr and Siegal in 1954

theory focuses on :

industries in isolated communities, lackingalternative employment are more strike-pronethan those in urban communities.

also propounded by Mayo in 1933


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The theory identifies that :

industries where social needs of workers are

not satisfied are more strike-prone than

industries where the social needs of workers

are met.

Needs seen as open communication and

inclusive management practices. Poor

communication and alienating management

practices are basic cause of strikes.

McGregor in 1966, Maslow in 1954 and Herzbergin 1966 emphasises that : strikes are high when


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in 1966emphasises that : strikes are high whenmanagers fail to provide workplace structures that

allow employees to make full use of their abilities.

about Industrial Relation Policy


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Prior to 1991, the industrial relations system

in India sought to control conflicts anddisputes through excessive labor legislations.

With the advent of liberalization in 1992. thepolicy is tilted towards employers.


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Living Wage and Job Security

minimum wage for all workers, including

youth and employed trainees.

Support workers for fair wages.

protection for casual, seasonal, fixed term and

temporary workers.

Industrial Democracy


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Improve workplace democracy

improve workers' union representation and

participation in the future of their work.

Implement international standards on the right to

strike, worker accident compensation, pay equity

and breastfeeding breaks.

Collective Organising and Bargaining


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Support initiatives for multi-party bargaining.

Support the right of unionised workers to prevent

freeloading by non-union workers.

Pay and Employment Equity


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Support equal pay for men and women workers for

work of equal value.

Increase workplace access to subsidised early

childhood and after school care.

Healthy and Safe Workplaces


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Stronger laws for key health and safety areas

Where employers are prosecuted and fined for

breaches of workplace safety, a portion of the fine

to workers injured as a result of the breach.

State Sector


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Promote a strong public sector, operating as a single

entity

Promote better employment practices.

Promote multi departmental collective bargaining

of consistent wages & conditions for state sector

workers.

Documents

Industrial relations.pptx