PRESENTED BYSHWETA SHETTY

M.SHWETAMADHU KULKARNI

NUTAN

INTRODUCTION TO INDUSTRIALRELATION

BACKGROUND OF INDUSTRIAL RELATIONS

DEFINITIONIndustrial relation describes relationships

between managements and employees or among employees and their organizations that characterize or grow out of employment.

OrIt is set of functional interdependence

involving historical economic social psychological demographic technological occupational political and legal variables.

Industrial relation plays a crucial role in establishing and maintaining industrial democracy.

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 influenced industrial relation in India.

In the pre independence days workers were hired and fired as the principle of demand 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.

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 and employees was informal personal and intimate but the as days go on relationship between them is no longer intimate and informal. Formal institutions have grown up to regulate this relationship.

Some factors have changed the nature of the employer employees relationship and have 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 the Indian labour conference.

The government’s 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

At present at the plant level IR become highly regulated.

The government of India passed the laws which governs the industrial relation.

Industrial relation refers to complex relationship between employer and employees as they are governed by social and economical changes.

Now a days employees are aware of labour laws.

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 joint product 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.

Approaches to IR

1. Psychological Approach.2. Sociological Approach.3. Human Relations Approach.4. Socio-ethical Approach.5. Gandhian Approach.6. System Approach.

1. Psychological Approach :

Mason Harie studied the influence of individual’s perception.”.

Harie concluded that : a) The general impression about a person is

radically different when he is seen as a representative of management from that of the person as a representative of labour. b) The management and labour see each other as less appreciately of other’s position than of oneself. c) The management and labour see each other as less dependable.

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

characteristics and inter-personal relations.

2. Sociological Approach:

It includes various sociological factors like value system ,customs, norms, symbols, attitude and perception of both labors and management .

The social consequences of industrialization like organization, social mobility, migration generates many social evils like family disintegration, stress and strain, delinquency, personal and social disorganization do influence workers efficiency and productivity that in turn influence industrial relation system of an industry.

3. Human Relations Approach

If human resources are not properly managed, the problem 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.

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 is willing to go in for establishing a community of mutual responsibility between the highest paid executive and the lowest paid production worker”.

4. Socio-Ethical Approach

The good industrial relations can only maintained when both the labour and management realize, their moral responsibility in contributing to the said task through mutual co-operation and greatest understanding of each others problems.

5. Gandhian Approach

Gandhiji’s views on industrial relations are based on 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.

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

Forms of IR

The interaction among the stake holders in IR is characterized by a certain “balance of power”.

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

In a market- driven economy, employers tend to dominate as a result of the right to “ hire and fire” in response to market demand.

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

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

Managing by contending(DEALING WITH DIFFICULTIES):

The dominant stakeholder holds the reins and steering the choice making processes and choices.Pressure tactics coupled with employment of leverages like litigation and direct action go hand-in-hand with the reaction of the dominated to protect threatened interest.

• 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.

Managing by colluding(COOPERATE SECRETELY 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.

THEORIES OF IRs• Dunlop’s System Theory(1958)

• Pluralist Theory of Flanders(1970)

• Structural Contradiction Theory of Hyman(1971)

• Human Relations Theory by Keith Davis

• Trusteeship Theory of Gandhiji

SYSTEM THEORY

John Dunlop developed system theory in 1958.

The central feature of this theory is that the IR system overlaps with the other system in the total social & human resource sys.

Dunlop suggested that three sets of interests have to be taken into account while developing an IR sys.

i. workers & unions ii. Employers & their organisations iii. Society & govt

This attempts to provide tools of analysis for interpretation & understanding of the widest possible range of IR facts & activities.

The sys theory is divided into three interrelated components,

i. actors ii. Certain contexts & ideology iii. Body of rules to govern the

actors.

Criticism• Non dynamic model• Concentrates on structure, ignoring process• Lack of focus on nature &development of

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

• It fails to describe how inputs are converted into outputs

PLURALISTS THEORY• This theory given by Flanders is also

known as Oxford model.• According to him conflicts are

inherent in IR sys & hence collective bargaining is central to IR

• R=f(b) or R=f(c) R=rules governing IR b=collective bargaining c=conflict resolved through c.b

CriticismFails to provide comprehensive

framework for analysing IR problems.

Over emphasises on political process of c.b

Variables such as technology.market,status of parties are not given importance.

HUMAN RELATIONS THEORY• According Keith Davis IR are “the integration of people into a work-situation

that motivates them to work productively.co-operatively &with economic ,psychological &social satisfaction.”

Goals of IR, i. to get people to produce ii. to co-operate through mutuality of

interest iii. to gain satisfaction from their

relationships

TRUSTEESHIP THEORY• Gandhiji had immense faith in goodness of

man.• He believed that many of evils of the modern

world have been brought about by 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

ii. There should be no violence iii. Non-strikers should never be molested.

…….THANK YOU……