chapter 1 - overview of industrial relations

8/10/2019 Chapter 1 - Overview of Industrial Relations

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LESSON

Overview of Industrial

Relations

Chapter Overview

1.1 Definition1.2 Principles of industrial relations

1.3 Definitions of harmonious relations1.4 Effects of harmonious relations1.3 Types of decision making in the industrial relations system1.4 Roles and functions of government in the industrial relations1. !ummary

Learning Objectives

This lesson introduces the field of industrial relations "y dra#ing learners$ attention toseveral pertinent aspects. %pon completing this lesson& students should "e a"le to'

1. Define the term industrial relations2. (utline principles of industrial relations3. Define harmonious industrial relations4. E)plain the effects of harmonious industrial relations. Descri"e types of decision making in the industrial relations system*. Ela"orate on roles and functions of government in the industrial relations


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IntroductionThis lesson focuses on the concept of industrial relations and several relevant aspects.+t comprises four main parts. The first part descri"es the definition and principles ofindustrial relations. The second part is a"out harmonious industrial relations i.e.definition and principles. Part three consists of the types of decision making in the

industrial relations system. Part four outlines the roles and functions of government in theindustrial relations. This #ill help you to ac,uire an in-depth understanding of this topic.

Please note that the term industrial relations and industrial relations system is usedinterchangea"ly in this lesson.

Definition and principles of industrial relations

Definition

any definitions have "een given to the term industrial relations. +n the simplest #ords it can "e

understood as the relationship "et#een emplopyees and their employers #ithin the #orkenvironment. The relationship also involves trade unions. Therefore& the relationships are"et#een employers and unioni/ed as #ell as non-unionised employees.

Principles of industrial relations

+n alaysia the employers0employees relations in the private sector are governed "y the+ndustrial Relations ct 1*5 +R. This ct esta"lishes the principles on #hich the relations arefounded. The principles are the follo#ing'

i. Trade %nionismThis principle states that #orkmen and employers too are entitled to "asic trade

union rights such as the right to form unions& the right to 6oin unions& and the right toparticipate in the activities of unions.ii. %nion Recognition

The principle e)plains that employee unions must "e recognised "y employers as alegal or official representative "efore they represent employees to "argain #hetherindividually or collectively.

iii. 7ollective 8argainingThis principle guides ho# employee unions may negotiate #ith employers the termsand conditions of employment and #ork of #orkmen& and may conclude #ithemployers "inding and enforcea"le #ritten agreements incorporating the terms andconditions agreed upon.

iv. Dispute ResolutionThis is the principle that attempts to offer the effective resolution of conflicts "et#eendisputing parties. Employers& #orkmen and their unions should& if possi"le& "eprevented through a grievance machinery or collective "argaining& and if not& "esettled through conciliation or ar"itration& rather than aggressive methods orindustrial action i.e. strikes& lockouts etc.


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Definitions and effects of haronious relations

9armonious industrial relations

9armonious industrial relations refer to peaceful relationship "et#een employers ormanagement and employees. !ometimes people use the term sound industrial relations as

harmonious industrial relations. The relation is considered harmonious #hen the num"er ofdisputes and industrial actions are minimal. The relationship is also considered harmonious if"oth parties choose peaceful #ays to settle the conflict. +n addition& successful disputeresolutions at the early stage also indicates the availa"ility of harmonious industrial relations.

Effects of harmonious industrial relations

The effects of harmonious industrial relations can "e seen from three levels i.e. nationalcountry& industry and organisational enterprise level.

1. Effects on the country9armonious industrial relations have effects on national productivity and prosperity. +t can

ensure political sta"ility& economic development and social #ell-"eing among people n acountry.

2. Effects on the industry+ndustries #ill also gain "enefits from harmonious relationship. :ood industrial relationshelp in uninterrupted production "y ensuring continuity of production& continuousemployment and full utili/ation of capacity. This results in ma)imum production #hich inturn keeps income flo# steady for everyone involved in production. This also results intimely arrival of goods at the market thus helping economy as a #hole.

3. Effects on the organisationThe effects of harmonious industrial relations are o"viously seen at the organisational

level i.e. employer and employees. 8y maintaining e)cellent industrial relations the#astage of machines& materials and men can "e reduced. utual understanding andcooperation may avoid industrial dispute that help organisation to save cost. Peacefulindustrial relations makes employees feel appreciated& keeps employees moral high andena"les them to #ork #ith sincerity and enthusiasm. !ound industrial relations reduce thenum"ers of industrial disputes and industrial actions. Proper elimination of #orkers;dissatisfaction results in peaceful industrial surroundings and increased production.

!"pes of decision a#ing in the industrial relations s"ste

:overnments& employers and employees are three players in industrial relations. These groupsmay interact differently in making decisions related to #ork life. The decisions can "e made inany of three #ays i.e. '

i. %nilaterallyThe decision is made "y one party in disregard for other parties i.e. the employers.People tend to associate this #ay of making decisions in the alaysian pu"lic sectorindustrial relations.


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ii. 8ilaterallyThe decision is made "y t#o parties i.e. employers and employees. The "est e)ample iscollective "argaining practices.

iii. Tripartite mannerThe decision is made "y three parties i.e. employers& employees and government.

r"itration is a good e)ample #here decisions are made "y +ndustrial 7ourtgovernment& employers and employees.

Roles and functions of governent in the industrial relations

i.


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$ctivit" %&1

>ou have no# reached the stage #here you should "e a"le to e)plain the concept andimportance of harmonious industrial relations. Try the follo#ing activity to test yourunderstanding of this lesson.

'(ES!ION S$)*LE

This is one of commonly ask ,uestions for this lesson.

E)plain the roles and functions of government in industrial relations. 1? marks

1. legislator 0 make la#2. administrator 0 translate la#s into actual actions and take corrective actions3. participant 0 take part in the discussion and endorsement of documents4. employer 0 hire people& allocate tasks and& provide salaries and "enefits

C+EC,LIS!

t this point you should "e a"le to'

@ to e)plain the effects of non harmonious industrial relations

@ to e)plain the principles #here private sector industrial relations are founded

S!(D- '(ES!IONS

*$R! $. DE/INI!IONDefine the following terms:

1. legislator 2. administrator 3. participant4. government. "ilateral

*$R! 0. S+OR! $NSER

Answer the following questions:

1. E)plain the impacts of harmonious industrial relations on organisations

2. Descri"e the effects of non harmonious industrial relations in a country.


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/eedbac# to $ctivit" %&1

/eedbac# to 2uestion saple

E)plain the roles and functions of government in industrial relations. 1? marks

i.


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2. Descri"e the effects of non harmonious industrial relations in a country.

Politics 0 sta"le government administration.

Economy 0 national productivity and prosperity& national development

!ocial 0 higher standard of living& safety and security of life are protected.

chapter 1 - overview of industrial relations

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