Download VTU (Visvesvaraya Technological University) MBA 3rd Semester (Third Semester) 16MBAHR301-Industrial Relations and Legislations IR Notes Module 1 Important Lecture Notes (MBA Study Material Notes)
Industrial Relations
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
? Under the Mines Act 1923, which applies to
workers employed in mines, the hours of work
for the persons employed on the surface are
limited to ten per day and fifty four per week.
? The periods of work including rest interval
should not be more than 12 hours in a day.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
? Under the Mines Act 1923, which applies to
workers employed in mines, the hours of work
for the persons employed on the surface are
limited to ten per day and fifty four per week.
? The periods of work including rest interval
should not be more than 12 hours in a day.
? For the workers working underground, the
working hours per day is nine .
? The Act does not contain provisions for
overtime.
? No worker is to work in a mine for more than
six days a week.
? The Act does not provide for wages for the
weekly rest day.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
? Under the Mines Act 1923, which applies to
workers employed in mines, the hours of work
for the persons employed on the surface are
limited to ten per day and fifty four per week.
? The periods of work including rest interval
should not be more than 12 hours in a day.
? For the workers working underground, the
working hours per day is nine .
? The Act does not contain provisions for
overtime.
? No worker is to work in a mine for more than
six days a week.
? The Act does not provide for wages for the
weekly rest day.
Other?impacts?of?ILO
?Forced?Labor?Convention?(Resolution)?
(No.29)
?Abolition?of?forced?Labor?Convention.?
(No.105)
?Equal?Remuneration?Convention.?No.?
100)
?Discrimination?(Employment?
Occupation)Convention?
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
? Under the Mines Act 1923, which applies to
workers employed in mines, the hours of work
for the persons employed on the surface are
limited to ten per day and fifty four per week.
? The periods of work including rest interval
should not be more than 12 hours in a day.
? For the workers working underground, the
working hours per day is nine .
? The Act does not contain provisions for
overtime.
? No worker is to work in a mine for more than
six days a week.
? The Act does not provide for wages for the
weekly rest day.
Other?impacts?of?ILO
?Forced?Labor?Convention?(Resolution)?
(No.29)
?Abolition?of?forced?Labor?Convention.?
(No.105)
?Equal?Remuneration?Convention.?No.?
100)
?Discrimination?(Employment?
Occupation)Convention?
? Right to Organize and Collective Bargaining
? The Motor Transport Workers Act, 1961,
? The Shops and Establishment Act passed by various
states,
? The Payment of Wages Act, 1936,
? The Minimum Wages Act, 1948,
? The Child Labor (Prohibition and regulation) Act, 1986
and11)
? Contract Labor (Regulation and Abolition) Act, 1970.
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
? Under the Mines Act 1923, which applies to
workers employed in mines, the hours of work
for the persons employed on the surface are
limited to ten per day and fifty four per week.
? The periods of work including rest interval
should not be more than 12 hours in a day.
? For the workers working underground, the
working hours per day is nine .
? The Act does not contain provisions for
overtime.
? No worker is to work in a mine for more than
six days a week.
? The Act does not provide for wages for the
weekly rest day.
Other?impacts?of?ILO
?Forced?Labor?Convention?(Resolution)?
(No.29)
?Abolition?of?forced?Labor?Convention.?
(No.105)
?Equal?Remuneration?Convention.?No.?
100)
?Discrimination?(Employment?
Occupation)Convention?
? Right to Organize and Collective Bargaining
? The Motor Transport Workers Act, 1961,
? The Shops and Establishment Act passed by various
states,
? The Payment of Wages Act, 1936,
? The Minimum Wages Act, 1948,
? The Child Labor (Prohibition and regulation) Act, 1986
and11)
? Contract Labor (Regulation and Abolition) Act, 1970.
? https://www.youtube.com/create_chann
el
FirstRanker.com - FirstRanker's Choice
Module 1
Industrial Relations
Learning objectives
? Understand the different views of the employment
relationship and the interaction in an IR System
? Explain the integral nature of the concept of conflict,
cooperation and regulations
? Identify the importantce and difficulties of comparing
industrial relations in different countries.
? Appreciate the character of labour process and labour
market within capitalism and the interrelationship
between macro and micro employment issues
Introduction
? Industrial society is a complex and dynamic
society (consist of group, societies and
institution) they are interrelated, however have
different attitudes and perceptions.
? They are also being influenced by external
environment.
? We cannot ignore the working aspect of
human being, as working hour dominate most
of our time.
What is Industrial Relations?
? The making and administering of the institutions
and rules of work regulation
? Socio-industrial conflict (in all its forms) and its
resolution
? Explicit and implicit bargaining between employees
and employers
A particular set of phenomena associated with
regulating the human activity of employment
IR-Meaning
? Industrial relations includes a set of
phenomena, both inside and outside the
workplace, concern with determining and
regulating employment relationship
Definition IR
? ILO ? ?IR deals with either the relationships
between the state and the employers? and
workers organization or the relation between
the organizations themselves?.
? Dunlop ? IR may be defined as the complex of
inter-relations among workers, managers and
government?.
Scope of Industrial Relations
Industrial relations?between?employee?and?
employer?in?their?day?to?day?work.?Hence,?it?is?
continuous?relationship.
1.Development?of?industrial?democracy.
2.Maximizing?social?welfare.
3.Creating?a?mutual?affection,?respect?and?regard.
4.Making?a?mutual?link?between?the?management?and?the?workers.
5.Stimulating?production?as?well?as?industrial?and?economic?
development.
Importance?of?Industrial?Relation?for?
Employees?and?Employers
1.? Foster?Industrial?Peace:
2. Promote?Industrial?Democracy:(government
mandated worker participation at various levels of the
organization with regard to decisions that affect workers)
3.? Benefit?to?Workers:
4.? Benefit?to?Management:
5.? Improve?Productivity:
Factors Affecting IR
? Institutional factors :
? Govt policies, labor legislation, courts, employers
federation etc.
? Economic factors :
? Capitalist, communist or mixed. the
structure of labor force, demand and supply
of labor etc
? Technological factors :
? Automation, Computerization
Factors Affecting IR
? Social and cultural factors :
? Religion, customs, and traditions, race,
cultures of various groups
? Political factors :
? Political structure of the country, political
parties, involvement of trade unions.
? Governmental factors:
? Govt policies, industrial policies, labor
policies, export and import policies
Actors of IR
? According to John T Dunlop
1 Workers and their organization :
Total workers ? working age, qualification, family
background, Psychological and social background, skills
attitudes towards work etc,
2. Employers and their organization :
3. Government :
plays the role of mediator.
labor policies, industrial relation policies, implementing
labor laws
Pluralistic
Co-operation
Conflict
Authoritarian
Paternalism
Unitary
Human
resource
management
Systems
Evolution
Revolution
Marxist
Control of
the labour
process
Input Conversion Output
Conflict
(differences)
Institutions
and
processes
Regulation
(rules)
Approaches to organisations
Approaches to industrial relations
Social action
Wider approaches to industrial relations
Approaches to industrial
relations
Labour market Comparative
Unitary view
The unitary frame of reference is credited to
Alan Fox (1966).
The unitary perspective views the organisation
as pointing towards a single or unified
authority and loyalty structure.
Unitary view
According to Rose (2008), under the unitary
perspective, trade unions are regarded as an
interruption into the organisation from outside,
competing with management for the loyalty of
employees.
Unitary view
The unitary theory tends towards authorism and
paternalism.
It is pro- management biased and emphasises
consensus and industrial peace.
The underlying assumption of this view is that
the organisation exists in perfect harmony and
all conflict is unnecessary
Unitary view
Organization is A group that united -
? Having same objectives
? Single authority
? Common value, interest and objectives
? Managers have the right to manage, managers
have prerogative to make decisions. Those who
challange is not rational.
Pluralistic perspective
Conflict theorists argue that conflict is inevitable, rational,
functional and normal situation in organisations, which
is resolved through compromise and agreement or
collective bargaining.
This view recognises trade unions as legitimate
representative organisations which enable groups of
employees to influence management decisions
Pluralistic: Input-output model
CONFLICT RECONCILIATION REGULATION
Function:
Identify Differences
of interest
Types:
1. Micro-level organization
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 or
procedural
2. Internal or external
to the organization
3. Varying degrees of
formality
Input Conversion Output
Conflict result from industrial and
organizational factors.
1. Different roles of mgt. and employees
? Mgrs responsible for efficiency, productivity
and profitability
? Employees: more of personal term (better pay
,good working conditions and good job
security.
2. Conflictual behavior result form:
? Specific situation (e.g the closure of some part
of organization and change to new
technology)
? General management principal (to cut cost,
increase profit and productivity)
MARXIST?APPROACH
Marxism?is?essentially?a?method?of?social?
enquiry? into? the? power? relationships? of?
society?and?a?way?of?interpreting?social?
reality.?
The? application? of? Marxian? theory? as? it?
relates? to? industrial? relations?derives?
indirectly? from? later? Marxist? scholars?
rather? than? directly? from? the? works? of?
Marx?himself.?
MARXIST?APPROACH
The?Marxist?approach?is?primarily?oriented?
towards? the? historical? development? of?
the? power? relationship? between? capital?
and?labour.
It?is?also?characterized?by?the?struggle?of?
these? classes? to? consolidate? and?
strengthen? their? respective? positions?
with?a?view?to?exerting?greater?influence?
on?each?other.?
MARXIST?APPROACH
In? this? approach,? industrial? relations? is?
equated?with?a?power-struggle.
The?capitalist?ownership?of?the?enterprise?
endeavours? to? purchase? labour? at? the?
lowest? possible? price? in? order? to?
maximize?their?profits.?
THE NATURE OF IR
??
Human Resource Management Approach
This? approach? emphasizes? individualism? and? the? direct? relationship?
between?management?and?its?employees.?
Quite?clearly,?therefore,?it?questions?the?collective?regulation?basis?of?
traditional?industrial?relations.
The Human Relations Approach
In the words of Keith Davies, human relations are
?the integration of people into a work situation that motivates
them to work together productively, cooperatively and with
economic, psychological and social satisfactions?.
According to him, the goals of human relations are:
(a) to get people to produce,
(b) to cooperate through mutuality of interest, and
(c) to gain satisfaction from their relationships.
The human relations approach highlights certain
policies and techniques to improve employee
morale, efficiency and job satisfaction.
It encourages the small work group to exercise
considerable control over its environment and in the
process helps to remove a major irritant in labor-
management relations.
Human relations school has thrown a lot of light on
certain aspects such as communication,
management development, acceptance of workplace
as a social system, group dynamics, and
participation in management.
The Gandhian Approach
Gandhiji can be called one of the greatest labor leaders of modern India.
His approach to labor problems was completely new and refreshingly
human.
He held definite views regarding fixation and regulation of wages,
organization and functions of trade unions, necessity and desirability of
collective bargaining, use and abuse of strikes, labor indiscipline, workers
participation in management, conditions of work and living, and duties of
workers.
The Gandhian Approach
The Ahmedabad Textile Labor Association, a unique and successful
experiment in Gandhian trade unionism, implemented many of his
ideas.
Gandhiji had immense faith in the goodness of man and he believed
that many of the evils of the modern world have been brought about
by wrong systems and not by wrong individuals.
He insisted on recognizing each individual worker as a human being.
He believed in non-violent communism, going so far as to say that
?if communism comes without any violence, it would be welcome.?
Gandhiji laid down certain conditions for a successful strike. These
are:
(a) the cause of the strike must be just and there should be no
strike without a grievance;
(b) there should be no violence; and
(c) non-strikers or ?blacklegs? should never be molested.
He was not against strikes but pleaded that they should be the last
weapon in the armory of industrial workers and hence should not
be resorted to unless all peaceful and constitutional methods of
negotiations, conciliation and arbitration are exhausted.
Psychological Approach
According to psychologists, problems of industrial relations have their origin
in the perceptions of the management, unions and rank and file workers.
These perceptions may be the perceptions of persons, of situations or of
issues involved in the conflict.
The perceptions of situations and issues differ because the same position
may appear entirely different to different parties.
Psychological Approach
The?perceptions?of?unions?and?of?the?management?of?the?same?issues?may?
be? widely? different? and,? hence,? clashes? and? may? arise? between? the? two?
parties.?
The?reasons?of?strained?industrial?relations?between?the?employers?and?the?
employees?can?be?understood?by?studying?differences?in?the?perception?of?
issues,?situations?and?persons?between?the?management?groups?and?labor?
groups.?
Sociological Approach
The management goals, workers? attitudes, perception of change in
industry, are all, in turn, decided by broad social factors like the
culture of the institutions, customs, structural changes, status-
symbols, rationality, acceptance or resistance to change, tolerance
etc.
Sociological Approach
Industry is, thus inseparable from the society in which it functions.
Through the main function of an industry is economic, its social
consequences are also important such as urbanization, social
mobility, housing and transport problem in industrial areas,
disintegration of family structure, stress and strain, etc.
Sociological Approach
As industries develop, a new industrial-cum-social pattern emerges,
which provides general new relationships, institutions and behavioral
pattern and new techniques of handling human resources. These do
influence the development of industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
2. IR during Post-Independence
3. IR during Post Liberalization Era:
Industrial Relations in India: An Overview
1. IR during Pre- Independence :
The structure of the colonial economy,
The labour policies of colonial government,
The ideological composition of the political leadership,
The dynamics of political struggle for independence,
All these shaped the colonial model of industrial
relations in pre-independent India?.
Then even union movement was an important part of the
independence movement.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Till the Second World War, the attitude of the colonial
government toward industrial relations was a passive
regulator only Because, it could provide, that too only
after due pressure,
the sum of protective and regulative legal framework for
industrial relations Trade Union Act 1926 (TL A) Trade
Disputes Act 1929 (TDA).
It was the economic emergence of the Second World
War that altered the colonial government?s attitude on
industrial relations.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The state intervention began in the form of introduction
of several war time measures, viz.
The Defense of India Rules (Rule 81- A),
National Service (Technical Personnel) Ordinance, and
the Essential Service (Maintenance) Ordinance
As such in a marked contrast to its earlier stance, the
colonial government imposed extensive and pervasive
controls on industrial relations by the closing years of its
era-.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
Statutory regulation of industrial relations was on board
of its labour policy.
The joint consultative institutions were established
primarily to arrive at uniform and agreeable labour policy.
Industrial Relations in India: An Overview
1. IR during Pre- Independence
The eve of Independence witnessed several instances
that served as threshold plank for IR during post-
Independence era.
The prominent instances to mention are passing of
Indian Trade Unions (Amendment) Act, 1947, Industrial
Employment (Standing Orders) Act 1946, Bombay
Industrial Relations Act, 1946, and Industrial Disputes
Act, 1947 and split in AITUC and formation of INTUC.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Though Independent India got an opportunity to
restructure the industrial relations system the colonial
model of IR remained in practice for sometimes due to
various reasons like the social, political and
economic implications of partition, social tension,
continuing industrial unrest, communist insurgency,
conflict, and competition in the trade union
movement.
In the process of consultation and confrontation,
gradually the structure of the industrial relations system
(IRS) evolved.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
However state intervention does not mean suppression
of trade unions and collective bargaining institution.
In fact, state intervention and collective bargaining were
considered as complementary to each other.
Gradually, various tripartite and bipartite institutions
were introduced to supplement the state intervention in
the IRS.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
The political and economic forces in the mid 1960s
aggravated industrial conflict and rendered non-formal
system ineffective.
In the process of reviewing the system, National
Commission on Labour (NCL) was appointed in 1966.
Industrial Relations in India: An Overview
2. IR during Post-Independence.
Several committees were appointed to suggest
measures for reforming die IRS.
In the process, tripartism was revived in 1980s.
Government passed the Trade unions and the Industrial
Disputes (Amendment) Bill, 1988.
But, it also proved yet another legislative disaster. The
bill was severely criticised by the left parties. It was even
viewed by some as a deliberate attempt to destroy
?autonomous; organised or militant trade union
movement?.
Industrial Relations in India: An Overview
2.?IR?during?Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
1990 decided three measures to reform IR in India:
(i)?To?constitute?a?bipartite?committee?of?employers?and?unions?to?
formulate?proposals?for?a?comprehensive?legislation;
(ii)? To? withdraw? the? Trade? Union? and? the? Industrial? Disputes?
(Amendment)?Bill,?1988
(iii)? To? consider? the? possibility? of? formulating? a? bill? on? workers??
participation?in?management,?1990.?
In? the? 33
rd
?session? of? ILC,? another? bipartite? committee? was?
constituted? to? recommend? changes? in? the? TU? and? ID? Acts.? The?
government? introduced? a? Bill? on? Workers,? Participation? in?
Management?in?Parliament?in?1990
Industrial Relations in India: An Overview
2. IR during Post-Independence.
In consequence, the tripartite deliberations held at the ILC in
Thus, the striking feature of the history of IR in India has been that it
is dynamic in nature.
Particularly since 1991 i.e., the inauguration of liberalization
process, die IR in India is marked by new challenges like
emergence of a new breed of employees (popularly termed as
?knowledge workers?), failure of trade union leadership, economic
impact, and employers? insufficient response?.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The Code of Conduct for Industrial Harmony (the
Code) is an agreement made between the Ministry of
Human Resources (then known as the Ministry of
Labour and Manpower) and the Indian Council of
Employers? Organisations (the predecessor to the
Indian Employers Federation and the Indian Trades
Union Congress.
CODE OF CONDUCT FOR INDUSTRIAL
HARMONY
? The aim of the Code is ?to lay down principles and
guidelines to employers and workers on the practice of
industrial relations for achieving greater industrial
harmony?.
? Under clause 7 of the Code, the central employer and
employee organisations have agreed to endorse and
recommend employers and workers to observe and
comply with the industrial relations practices agreed upon
and accepted by the Ministry of Human Resources.
? Contents of the Code The Code lists 50 specific
industrial relations practices under four broad
areas for cooperation, namely:
? Responsibilities
? Employment policy
? Collective bargaining and
? Communication and consultation
Objectives
? To promote constructive co-operation
between the parties concerned at all levels.
? To ensure employer and employees recognise
each other?s rights and duties.
? To secure settlement of disputes.
? Free growth of trade union
? Maintain discipline
Principles
? No strikes or lockouts without prior notice
? No damage caused to plant and property
? Violation, intimidation and coercion should not
be resorted
? Machinery of settlement should be utilized
Contents
? Management and Union(s) agree
? No unilateral action
? Settlement of disputes through existing
machinery
? Mutually agreed grievance procedure
? Not to take arbitrary action without following
grievance procedure
? Co-operation between all levels
? Management agree
? Not to increase workload
? Not to encourage unfair labour practice
? To take appropriate disciplinary action
? Union agree
? No physical duress
? No violent demonstration
Govt policies related to labour
International Labour Organization
(ILO)
India is a founder member of the International Labour
Organization, which came into existence in 1919. At
present the ILO has 187 Members.
The International Labour Office, Geneva provides the
Secretarial role for all Conferences and other meetings
and is responsible for the day-to-day implementation of
decisions taken by the Conference, Governing Body etc.
Indians have held positions of importance in the
International Labour Office.
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectorial and Technical Meetings and Related
issues
International Labour Organization
(ILO)
The Governing Body of ILO functions through its various
Committees. India is a member of all six committees of
the Governing Body viz.
(i) Programme, Planning & Administrative;
(ii) Freedom of Association;
(iii) Legal Issues and International Labour Standards;
(iv) Employment & Social Policy;
(v) Technical Cooperation and
(vi) Sectoral and Technical Meetings and Related issues
Impact of ILO on Labor Laws
in India
? With the growth and expansion of factories and
industries new avenues for employment were created,
resulting in to gradual migration of labor force from
rural areas to urban areas.
? In the absence of any state control or organization of
the workers, the employers were less concerned
about the needs of the employees & their work hours.
? The wages were much below the subsistence
(survival) level and the working conditions
were unsatisfactory.
? This situations led to the enactment of a
number of legislations beginning from the year
1881.
? These include The Factories Act (1881),
Workmens Compensation Act(1923), Trade
Unions Act (1926), The Payment of Wages
ACt,(1936), The Maternity Benefit Act (1939)
and so on.
? The Factories Act 1881, is the basis of all labor and
industrial laws of the country.
? It contained provisions for even working hours for men
and women, minimum age for employment of children.
? After the formation of ILO in1919,this act was
amended, which made provisions for
? Safety, health and hygiene of the workers.
? It also made special provision for women and
young workers
? (i.e. labor above the age of 16 but less than
18).
? It also prohibited child labor.
? Under the Mines Act 1923, which applies to
workers employed in mines, the hours of work
for the persons employed on the surface are
limited to ten per day and fifty four per week.
? The periods of work including rest interval
should not be more than 12 hours in a day.
? For the workers working underground, the
working hours per day is nine .
? The Act does not contain provisions for
overtime.
? No worker is to work in a mine for more than
six days a week.
? The Act does not provide for wages for the
weekly rest day.
Other?impacts?of?ILO
?Forced?Labor?Convention?(Resolution)?
(No.29)
?Abolition?of?forced?Labor?Convention.?
(No.105)
?Equal?Remuneration?Convention.?No.?
100)
?Discrimination?(Employment?
Occupation)Convention?
? Right to Organize and Collective Bargaining
? The Motor Transport Workers Act, 1961,
? The Shops and Establishment Act passed by various
states,
? The Payment of Wages Act, 1936,
? The Minimum Wages Act, 1948,
? The Child Labor (Prohibition and regulation) Act, 1986
and11)
? Contract Labor (Regulation and Abolition) Act, 1970.
? https://www.youtube.com/create_chann
el
FirstRanker.com - FirstRanker's Choice
This post was last modified on 18 February 2020