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Industrial Relations


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Concept

In a restricted sense , IR is the relation between mgt.and the union or between representatives ofemployees and representatives of employers.

In its widest sense , IR includes relations in allaspects of work and employment between andamong the parties to an employment relationship.

The term industry includes all forms of economic

activity agriculture, manufacturing, services etc.

Industrial relations refers to all aspects ofemployment relations. They are as old as

industry.


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Scope The aim of the mgt. is to achieve the bestresults/outcomes with the least inputs, improve

returns on capital and wages and workingconditions of workers and offer incentives tomanagers to strive for continuous improvement inrelations and mutual cooperation betweenemployees and employers.

The aim of workers/trade unions is to improvewages and working conditions, gain control overwork, secure redressal of grievances and in somecases even pursue political action.

The aim of govt. is to develop sound labour mgtrelations for realizing the goals of economic andsocial development.


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In the past ,during the era of artisan guilds-

the scale and size of operations were small

and relations simple and direct . This is in contrast to the modern-day

complexities in the legal framework

institutions and the governing industrialrelations.

Industrial relations are based primarily on

individual perceptions of what is right inrespect of fairness and the exercise of

power and authority .


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ImportanceGovernance Of Sound Industrial relations by:-

1. Equity And Fairness

It refers to the equal treatment to one and all undercomparable circumstances. Equity and fairness are used

synonymously in IR. But fairness is an objective when oneapplies a technical yardstick like market forces or jobevaluation.

2. Power And Authority

Power is the ability to influence, impose or control. Itimplies the use of force.

Authority is the right to expect and command obedience.The law may sometimes extend or contract managerialauthority to regulate the manner in which they are

exercised particularly on subordinates.


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3. Individualism And Collectivism

An individual should have the right to join a trade

union . Likewise he or she should have the rightnot to join a union also.But the union shop clause in a collective agreement

negates the right of freedom of the individualemployee where he is compelled to join a union .

So, this is also monitored by the govt.

4. Integrity, Trust And TransparencyTo adhering to what is professed is integrity which is

necessary in an org. This can be promoted by

efforts to bridge the gap if any between what issaid and what is done. Trust is establishedbetween and among people. Transparency ispromoted through sharing of information,openness in communication and willingness toexplain and reason out the motives behinddecisions and actions.


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Other Benefits:-

1. Harmonizes the interests of ecologicallysustainable economic growth with socialprogress and justice.

2. Generates productive employment.

3. Contributes to improvement in the

productivity and quality of goods/services ateconomical prices.

4. Improves the well- being and quality of life ofworkers and their families.


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Approaches To Industrial

Relations Fahlbeck Approach

Acc. to him the relationship between attitudes

and behaviour shapes the relations between

employers and the union.Attitude Behaviour

Contempt Dictatorial

Adversarial Paternal

Acceptance Businesslike

Cooperation Participative


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He contended that employers follow one of

the following 4 approaches to IR :-

1. My Boat attitude- get off , if you do not likeit .

2. Shared Boat attitude- we sail together .

Do not rock the boat.3. Our Boat attitude- it is our own common

enterprise. Let us combine our efforts to

better it.4. Your Boat attitude- with a sense of

ownership and pride, the purpose is to let

employees wholeheartedly contribute to the

cause of the enterprise.


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The Systems Approach

Dunlop considered industrial relations a subsystem of society distinct from, butoverlapping ,other subsystems. He suggestedthat IR system could be divided into 4

interrelated elements comprising certainactors, certain contexts, and anideology(inputs) which binds the IR systemtogether creating a body ofrules(output) togovern the actors at the workplace and theprocessing part includes bargaining ,conciliation, arbitration, lawmaking etc.


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Actors:- Managers, non-managerial employees and their

representatives and specialized government agencies(and

specialized private agencies created by the first two

actors) concerned with IR.

Context :- Influence and constraints on the decisions of the

actors which emanate from other parts of society, such as

technology, market, budgetary and the locus anddistribution of power in the larger society.

Ideology:- Set of ideas and beliefs commonly held by the

actors that helps to bind or to integrate the system togetheras an entity.

Rules:- The regulatory framework, developed by a range of

processes and presented in variety of forms which

expresses the terms and nature of the employment

relationship.


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Theoretical Perspectives

Unitary

Pluralist

Radical(marxian) Trusteeship(mahatma gandhi)


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Unitary Perspective

Here employers perceive themselves as providersof job, income and social security and theybelieve that conflict is unnecessary.

It is based on the assumption that:-

1. the organization is composed of a group ofpeople under a single loyalty structure.

2. It is the right, prerogative and responsibility of the

mgt. to make decisions regarding how anenterprise is to be run and how employees are tobe dealt with.

3. Conflict is irrational and trade unions are

avoidable.


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Employers find the unitary perspectiveattractive because it legitimizes theirauthority to govern and allows them to

presume that conflict is largely due to thefault of the governed and the mgt. cando no wrong.

The unitarist argument is:- There is onlyone source of authority which ismanagement. They own and thereforethey control.

Regrettably, in a large section of theunorganised sector, in both urban andrural india, and In several tiny and smallscale industries in urban areas, unitarism

still prevails.


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Plularlist

1. It is based on the assumption that the org. iscomposed of individuals who make up distinct

sectional groups, each with its own interests,

objectives and leadership.

2. Common interest and mutual dependence are

perceived as necessary for the survival of the

whole of which they are parts.

3. Normative differences do not come in the wayof negotiations.

4. It sees conflicts between mgt. and employees

as rational and inevitable but it can be andneeds to be managed and resolved.


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Employees are allowed to form unions butpluralism does not always guaranteecompromise because negotiations can at

times end in a deadlock.Gouldner observed that the respect for rules

depends on the manner of their formulationand suggested that if norms are established

through consensus and in consultation withthose covered, there is a greater chance ofthem being accepted.

Through collective bargaining employees can

influence job regulation/control and it is possibleto achieve a balance of power between mgt.and trade unions.

So, both the parties strive to exercise economic aswell as political power.


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Pluralist: Input-output model

CONFLICT RECONCILIATION REGULATION

Funct ion:

Identify Differencesof interest

Types:

1. Micro-level organisation

tensions

2. Macro-level society

values & issues

Forms of expression:

1. Hidden individual

2. Overt constitutional

3. Industrial pressure

Conducted through:

1. Processes

2. Institutions

3. Levels

Rules:

1. Substantive orprocedural

2. Internal or external

to the organisation

3. Varying degrees of

formality

Input Convers ion Output


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Radical Perspective1. It is based on the assumption that the production

system is privately owned and is motivated by theprofit. Control over production is exercised by the

managers who are agents of owners.

2. The marxist theory of surplus value argues that

conflict is necessary for social change and socialchange is required to end the disparity between

those who own capital and those who supply

labour.

3. It sees industrial conflict as synonymous with

political and social conflicts.

4. It considers pluralism as mere illusion .

5. It believes that conflict can not be controlled aslong as capitalism prevails.


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6. It favours transformation of trade

unions into revolutionary

organizations.

7. He said that the legal framework of

employment supports the interests

of management. The law gives the

employer the right to issue orders

while imposing on the workers the

duty to obey.

8. Marx believed that only trade

union consciousness without class-

consciousness is not enough.


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TrusteeshipIt was introduced by mahatma gandhi . A trustee is one who

holds property in trust for others. It becomes trusteeship

when a company accepts its total responsibility and when

mgts role becomes that of balancing all the claims upon

the company on the basis of seeking justice as the aim of

business. A co. is not a human person therefore it cannothave a human soul. What it can and should have is a

corporate personality which enables its managers and

employees to realize that they are serving the community

through the company. He believed that people shouldkeep the minimum of wealth for themselves to be able to

lead a life that millions lead and give up the rest to be held

in trust for the greatest good of all. But it is an idea and an

idea that is still evolving and is not sufficiently crystallizedfor implementation in letter and spirit.


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Conclusion

Whatever the perspective, conflict is inherent inindustrial relations due to tensions of command

and subordination, competitiveness, exploitation,

physical deprivation at work and economicsecurity. Conflict may arise due to :-

Wage-work bargain,

Managerial system of work governance, or

fundamental divisions and differing values in

society.


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Conflict manifests itself in one or more of

the following forms :-1. Relatively hidden and unorganised

individual ways such as high labour

turnover, accidents etc.2. Grievances, indiscipline etc.

3. Strikes or other forms of industrial action,

overt (strike/lockout) or covert(go-slow etc.)

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