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Meaning, Scope, Objectives and Significance

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Presentation on theme: "Meaning, Scope, Objectives and Significance"— Presentation transcript:

1 Meaning, Scope, Objectives and Significance
Industrial Relations Meaning, Scope, Objectives and Significance

2 Meaning The term industrial relations comprises of two terms
Industry : refers to any productive activity in which an individual or group of individuals is (are) engaged. Relations : means the relationships that exist within the industry between the employer and the workers/employees Industrial relations is also termed as labour management relations, labour relation or employee employer relations

3 Industrial Relations According to Edwin B. Flippo – Industrial Relations refers to all types of relations that exist in an industrial enterprise and employers and employees constituted them. It denotes all types of intra-group relations within and inter-group relations between these constituent groups. These relations can be formal, informal and mixed.

4 Industrial Relations It is an expression used not only for relationships between employers and workers or trade unions but also the government. Social relations – comprises of people and the relations among them –affected by emotions, behaviours, attitudes and other psycho-social factors

5 Industrial Relations Salient features
Outcome of employment relationship in an enterprise Industrial relations are governed by the system of rules and regulations concerning work, workplace and working community. The relationship is regulated by labour policies and laws Involvement of employers or their associations, workers/employees or their unions and the government

6 Industrial Relations Salient features
Trade Unions is another important institution in the Industrial relations. Trade unions influence and shape the industrial relations through collective bargaining. It is intra and inter-relationship between and among them It works at three levels – enterprise level, sectoral level and national level It is sometimes bipartite and sometimes tripartite

7 Salient features of irs
The main purpose is to maintain harmonious relations between employees and employer by solving their problems through grievance procedure and collective bargaining. These relations emphasis on accommodating other parties interest, values and needs . Parties develop skills of adjusting to and cooperating with each other. Conflict and cooperation govern the relationship

8 Coverage of IRs Industrial relations also include those processes through which the relationships are expressed like HRM, Collective bargaining, workplace co-operation, grievance handling, dispute settlement, workers participation in decision making etc)

9 irs regulation Customs and practices IRs policies
IRs related laws including labour Enterprise by-laws/employee rules Government directives/orders Court decisions Administrative decisions

10 Significance of sound irs
Minimization of disputes Uninterrupted production Increase in productivity High motivation Raising the living standard of workers/employees Foster industrial peace Promote industrial democracy

11 Actors in Industrial Relations Employers Organizations
Workers/employees Trade unions Actors in Industrial Relations Employers Organizations Employers Government Labour Administration/ courts/ tribunals

12 Different interests Employers Workers/employees Profitability
High productivity High performance from the workers Discipline Low cost No unionization Flexibility in the employment relationship Easy termination Minimum benefits Workers/employees Good salary Social security Share in the profit More benefits Employment security Unionization Protection of their rights Participation in the policy making processes Safety and health

13 Objectives of IRs Establish and foster healthy industrial relationship between workers and management by safeguarding their interests Avoid industrial conflicts Promote participation of workers in management and decision making process Raise productivity to curb turnover and absenteeism Improve standard of living of workers by ensuring basic employment benefits and conditions

14 Objectives of IRs Develop mutual understanding between the management and workers Minimize labour disputes Foster industrial peace Promote industrial democracy

15 Characteristics of sound industrial system
Relationship between the management and employees/workers (and their representatives) on the one hand and between them and the state is cooperative and cordial Conducive to economic efficiency, motivation, productivity and development of worker/employee Creates an environment of trust Well regulated by rules, processes and mechanisms Balance between economic efficiency of the organization and equity, justice and development of an individual is ensured Raises the living standard of the workers/employees Minimum disputes and definite mechanism of dispute settlement Governed by Labour Management Relationship Policy

16 characteristics of sound industrial system
Recognition of right to unionize and collective bargaining Labour Management cooperation Good HRM policy and employee rules Respect for existing labour laws and rules Existence of good grievance mechanism Presence of good industrial culture

17 Basic Concepts

18 Basic concepts – demands
Right demands Right demands are those demands which arise out of what have been clearly provided to the workers/employees in the Labour Law It is achieved through the mechanism provided in the labour law Interest demands Interest demands are those demands which the workers/employees want more than what have been provided clearly in the labour law. It is achieved through collective bargaining

19 Basic concepts – collective bargaining
Collective Bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreement reached by these negotiations usually set out employment and working conditions like wages, working hours, occupational safety and health, overtime, grievance mechanisms, and rights to participate in workplace or company affairs

20 Basic concepts - Strike
Strike is a work stoppage caused by the mass refusal of workers/employees to work. A strike usually takes place in response to employee grievances or failure to reach to an agreement on collective demands put forward by It is a tool used against the employers by the workers/employees to make the employers accept their demands for better working conditions. It is a financial pressure tactic It is regulated by labour laws

21 Basic concepts – lock out
Lock out is industrial action during which an employer withholds work and denies employees access to the place of work. In effect, it is a withdrawl of work by the management to compel a settlement to a labour dispute on terms favorable to the employer. It is a financial pressure tactic It is regulated by labour laws

22 Basic concepts – union density
Union density means a measure of the membership of trade unions, calculated as the number currently enrolled as members as a proportion of all those employees potentially eligible to be members. 

23 Basic concepts – trade union and recognition
Trade Union is an organized association of workers/employees in an enterprise formed to protect and further their rights and interests. Represents the interests of its members (workers/employees) It is formed for the purpose of collective bargaining with the employers for better employment conditions

24 Basic concepts – trade union and recognition
Recognition of trade union means the expressed recognition of a registered trade union by an employer or by an employers association for the purposes of collective bargaining. Recognition is different from registration. Recognition is provided to that union which comprises of more than 50 per cent of the employees in that establishment as its members or on the basis of majority in the election in the enterprise . The labour laws (Trade Union Act) regulate the recognition process.

25 Historical evolution of irs
The concept of industrial relations was developed with the industrial revolution. Stages – primitive stage, agrarian economy stage, serfdom stage, handicraft stage, cottage stage and factory or industrial capital stage Main features People working for master were treated like slaves Master servant relationship No human relationship or absence of human element Poor working conditions No wages or less wages Maximization of profit

26 IRs and HRM

27 human resource management
HRM is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. HRM is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, safety, wellness, benefits, employee motivation, communication, administration, and training.

28 human resource management
HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization's goals and objectives.

29 difference between hrm and ir
Three parties – Employers, employees and government Implementation of HRM policies results in sound IR Employees contact even the top management as a group Collective bargaining, strike, lockout, social dialogue are some of the means to resolve IR issues or conflicts. Two parties – management/employer and employees Formulation of objectives, policies, procedure and programs of human resources and implement them The Individual employee contacts with the immediate superior. Grievance and disciplinary procedures are resorted to, to solve the employee-employer conflicts

30 difference between hrm and ir
Overall management of all resources including workers, staff, executives, top management and even suppliers and customers.  Industrial Relations in practice means the relations between actual work force and management of the organization.


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