Nature of IR

Lecture Overview
• Nature of IR
• Need good relationship between management and workers
• Approaches to industrial Relations
• Stakes of parties
• Proactive strategy to IR
• Role of HR department
Nature of IR
Industrial Relations: “Concerned with the relationship between management

and workers and role of regulatory mechanism to resolve disputes between
employee and workers”
“IR is concerned with system, rules and procedures used by unions and employers
to determine the reward for effort and other conditions of employers, and to
regulate ways In which employers treat their employees’’
Nature of IR
• IR COVERS
1. Collective bargaining
2. Role of management, unions and government
3. Mechanism of resolving disputes
4. Grievances and disciplinary policy and practices
5. Labour legislation
6. Industrial relation training
Important of IR
• Moral dimension
• IR protect right of managers
• Handling disciplinary proceedings
• Fairness in practices and working relations

Approaches To IR
Unitary Approach:
• Based on mutual cooperation, individual treatment, shared goals

and team work
• Everyone gains when there is common interest and goals and

promotion of harmony
• Conflict is destructive and unnecessary
• Direct negotiations with employees
• No need to involve government, and unions to resolve conflict

Approaches To IR
Pluralistic Approach:
• There is competing interest, management’s role is to act as

mediator amongst competing interests groups
• Trade unions are representative of employee interests
• Concessions and compromised between management and
unions
• Conflict between management and union is good for productive
work environment and innovation
• Unions balance interest of employees and employer
• Government interferes in form of regulations to protect the right of
society and employees
• Crux: Conflict is inevitable and needs to be contained with in the
social media mechanism of conciliation, collective bargaining, and
arbitration
Approaches To IR
Marxist Approach:
• Conflicts is inevitable but it is because of capitalist society

• Conflict is not because of competing interests of employees and
management but division with in society between people who own
resources and people who offer labour
• Industrial conflict is because of social and political unrest
• Trade unions are forum to react to capitalism exploitation and bring
social revolution
• Trade unions make employees (labour) position more strong in
capitalistic society
• All strikes are legitimate, fair and political
• Regard state interventions through legislation is to protect the
owners
Parties to IR
Employees Employers
Employees Employer-employee Employers

Association relations Associations
Government Courts and Tribunal

IR Strategy
1) Reactive Strategy
Resolve conflict when it artistes and reach to uncontrollable level
2) Proactive Strategy
Follow forward looking and well planned strategy to deal with IR
Four main components of proactive IR strategy
I. Communication
II. Relationships
III. Competence
IV. Discipline and Conflict
Factors Affecting Employee
Relationship Strategy
Internal Factors:
1. The attitude of management to unions and employees
2. The attitude of employees and unions to management
3. The attitude of employees to unions
4. The strength of unions
5. The extent to which company to resolve disputes and handle disciplinary
matters
6. The competence of managers to deal with employees issues
External Factors:
7. Strength and effectiveness of employees’ associations
8. The pay and employment situations at local and national level
9. The legal framework in which IR operates.
Role of HR Department in IR
• Motivated and competent workforce is responsibility of HR
• Through effective recruitment, work conditions, job designs, safety and health
environment, training and compensation HR department satisfies employee
and organization needs
• Through these efforts it contributes to quality of life of workers
• Workers with better quality of life less likely to resist, involve in disputes and
go on strikes
Summery
• Nature of IR
• Need for good relationship between management and workers
• Approaches to industrial Relations
• Stakes of Parties
• Proactive strategy to IR
• Role of HR department

Nature of IR

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Nature of IR

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Lecture Overview

• Need good relationship between management and workers

• Approaches to industrial Relations

Industrial Relations: “Concerned with the relationship between management

• IR protect right of managers

• Handling disciplinary proceedings

• Fairness in practices and working relations

• Based on mutual cooperation, individual treatment, shared goals

• Everyone gains when there is common interest and goals and

• Conflict is destructive and unnecessary

• Direct negotiations with employees

• No need to involve government, and unions to resolve conflict

• There is competing interest, management’s role is to act as

• Conflicts is inevitable but it is because of capitalist society

Employees Employer-employee Employers

Government Courts and Tribunal

Four main components of proactive IR strategy

• Through these efforts it contributes to quality of life of workers

• Need for good relationship between management and workers

• Approaches to industrial Relations

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