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PRESENTED BY

SHWETA SHETTY

M.SHWETA

MADHU KULKARNINUTAN

INTRODUCTION TO

INDUSTRIALRELATION

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Industrial relation plays a crucial role in

establishing and maintaining industrialdemocracy.

The origin of industrial relations lies in the

employer employee relationships. In India it is passed through several

stages. A number of factors social,

economic, and political have influencedindustrial relation in India.

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In the pre independence days workers

were hired and fired as the principle ofdemand and supply governed industrial

relations.

The employer was in a commanding

position and the conditions of employment

and wages were very poor.

However even till the end of first world war

the trade union had not emerged.

The people who owns the instruments and

materials of production become their

employers and own the product.

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In the beginning of the modern industrial

society the economic system consisted of

a large number of small competitive

business and industrial establishment each

employing a small number of workers.

The relationship between employer andemployees was informal personal and

intimate but the as days go on relationship

between them is no longer intimate andinformal. Formal institutions have grown up

to regulate this relationship.

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Some factors have changed the nature of

the employer employees relationship andhave converted this private relationship in

to a relationship of public importance.

After India attained independence one of the

significance step taken in the field of

industrial relations was the enhancement

of the Industrial disputes act 1947.

Another development is setting up of theIndian labour conference.

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The governments attitude was changed

towards labour and their problems.

Many political and international events

affected the course of industrial relations.

In 1958 code of discipline was introduced.

Standing labour committee was established

in 1970.

In the late 1970s and early 1980s industrial

relations India were characterized by

violence. Because ILC failed to meet the

objectives.

NAB and SAB are formed

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At present at the plant level IR become

highly regulated.

The government of India passed the lawswhich governs the industrial relation.

Industrial relation refers to complex

relationship between employer andemployees as they are governed by social

and economical changes.

Now a days employees are aware oflabour laws.

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The maintenance of the industrial peace and the

smooth functioning of industrial relations are the

basic requirements of public welfare.

The trade unions and their federations of today as

well as the large business corporations

separately command an aggregate of power.Which can be used both for the welfare as well

as the large for the disruption of society.

The struggle between these two wings of industrial

relations fighting for the sharing of the jointproduct of labour and capital.

The result is that the problems of industrial relation

such as strikes and lock outs hiring and firing

promotion and transfer etc.

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1. Psychological Approach.

2. Sociological Approach.

3. Human Relations Approach.

4. Socio-ethical Approach.

5. Gandhian Approach.

6. System Approach.

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1. Psychological Approach :

Mason Harie studied the influence of individuals perception..

Harie concluded that :

a) The general impression about a person isradically different when he is seen as a

representative of management from that of theperson as a representative of labour.

b) The management and labour see each other as

less appreciately of others position than of

oneself.c) The management and labour see each other as

less dependable.

d) The management and labour see each other asdeficient in thinking regarding emotional

characteristics and inter-personal relations.

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2. Sociological Approach:

It includes various sociological factors likevalue system ,customs, norms, symbols,attitude and perception of both labors andmanagement .

The social consequences of industrializationlike organization, social mobility, migrationgenerates many social evils like familydisintegration, stress and strain, delinquency,

personal and social disorganization doinfluence workers efficiency and productivitythat in turn influence industrial relation systemof an industry.

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3. Human Relations Approach

If human resources are not properly managed, theproblem of industrial relations surfaces and can

only be managed by deciphering and managing

the dynamics of human behavior both at the

individual and group level.

There are four basic needs namely Physiological,

safety, social and egoistic needs.

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So it is necessary for management to

design a suitable motivational strategy.

The industrial progress of the future will

ultimately depend upon how far industry iswilling to go in for establishing a

community of mutual responsibility

between the highest paid executive and thelowest paid production worker.

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4. Socio-Ethical Approach

The good industrial relations can only

maintained when both the labour and

management realize, their moralresponsibility in contributing to the said

task through mutual co-operation and

greatest understanding of each othersproblems.

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5. Gandhian Approach

Gandhijis views on industrial relations are basedon his fundamental principles of truth and non-

violence, and non-possession or aparigraha.

This philosophy presumes peaceful co-existence

of capital and labour, which calls for the

resolution of conflict by non-violent, non-co-operation (satyagraha), which actually amounts

to peaceful strikes in ordinary parlance.

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6. System Approach (John

Dunlop)

It focuses on participants in the process,

environmental forces and the output.

It studies inter-relations among different

facets of industrial relations system.

Environmental Forces Participants in the System Outputs1.Market or Budgetary Restraints

2.Technology.

3.Disribution of power and society.

Union-Management

Government

Rules of the

Workplace

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Forms of IR

The interaction among the stake holders in IR ischaracterized by a certain balance of power.

In highly regulated IR environment, the state islikely to be the dominant power.

In a market- driven economy, employers tend to

dominate as a result of the right to hire and fire inresponse to market demand.

In a socialist economy, trade unions tend to have adominant role.

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The management of IR within the framework ofculture of dominance can take 3 forms:

Managing by contending(DEALING WITH

DIFFICULTIES):

The dominant stakeholder holds the reins andsteering the choice making processes andchoices.Pressure tactics coupled with employment ofleverages like litigation and direct action gohand-in-hand with the reaction of the dominatedto protect threatened interest.

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Managing by conceding(GIVE UP

ADVANTAGE OR RIGHT):

The dominant stake holder manages

interactions with other less dominant or

dominated stake holders by making

concessions on an ad hoc, situational basis.

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Managing by colluding(COOPERATESECRETELY FOR DIHONEST):

The dominant stake holder strikes up

equations with individual stake holder

representatives or with stake holders

associations, so that mechanism of choice-

making as well as choices are influenced to

favor the dominant stake holder.

This collusive character of the interaction leads

to the compromise of the interests of the less

dominant stake holder groups.

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THEORIES OF IRs

Dunlops System Theory(1958)

Pluralist Theory of Flanders(1970)

Structural Contradiction Theory of

Hyman(1971)

Human Relations Theory by Keith Davis

Trusteeship Theory ofGandhiji

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SYSTEM THEORY

John Dunlop developed system theory in1958.

The central feature of this theory is that

the IR system overlaps with the othersystem in the total social & human

resource sys.

Dunlop suggested that three sets ofinterests have to be taken into account

while developing an IR sys.

i. workers & unions

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This attempts to provide tools ofanalysis for interpretation &

understanding of the widest possible

range of IR facts & activities. The sys theory is divided into three

interrelated components,

i. actorsii. Certain contexts & ideology

iii. Body of rules to govern the

actors.

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Criticism

Non dynamic model

Concentrates on structure, ignoring

process

Lack of focus on nature &developmentof conflict

Problematic when actors do not share a

common ideology It favors analytical approach based on

comparison rather than prob solving app

based on descriptions

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PLURALISTS THEORY

This theory given by Flanders is alsoknown as Oxford model.

According to him conflicts are inherent in

IR sys & hence collective bargaining iscentral to IR

R=f(b) or R=f(c)

R=rules governing IRb=collective bargaining

c=conflict resolved through c.b

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Criticism

Fails to provide comprehensiveframework for analysing IR problems.

Over emphasises on political process of

c.b Variables such as

technology.market,status of parties are

not given importance.

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HUMAN RELATIONS THEORY

According Keith Davis IR are

the integration of people into a work-

situation that motivates them to work

productively.co-operatively &witheconomic ,psychological &social

satisfaction.

Goals of IR,i. to get people to produce

ii. to co-operate through mutuality of

interest

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TRUSTEESHIP THEORY

Gandhiji had immense faith in goodnessof man.

He believed that many of evils of the

modern world have been brought aboutby wrong sys, not by wrong individuals.

He laid down certain conditions for

successful strikes,i. the cause of strike must be just &

there should be no strike without a

grievance

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.THANK

YOU