• Industrial relation refers to the nature of relationship
between the employers and employees in an industrial enterprise. • IR denotes relations of all those associated in productive work, including industry, agriculture, mining, commerce, finance, transport and other services (Encyclopaedia Britannica). • IRs are relationship between management and employees or among employee and their organization that arise out of employment (Dale). • In modern usage, the phrase “Industrial Relation” includes the whole gamut of matters that arise due to the continuing relationship between the employers and the workers. Industrial Relation (IR) • It refers to all types of relationship between all the parties concerned with the industry. • Example: – Relationship between employers and workers. – Collective bargaining – Trade union – Settlement of industrial disputes – Unfair labor practices – Individual grievance and disciplinary policy and practice. – State participation in industrial Relation etc Objective of Industrial Relation • The primary objectives is to improving the economic condition of workers, increasing productivity and achieving industrial democracy in industrial enterprise. • ILO has recognized certain fundamental objectives of Industrial relations. i.e. To maintain sound and harmonious relations between employees and employers. Other objectives drawn from this objective are the following: 1. Industrial Relation safeguards the interest of labor and management. 2. To raise productivity of the industry at a higher level. 3. To avoid all forms of industrial conflict Objective …. 3. To minimize labor turnover and absenteeism by providing job satisfaction to the workers and increasing their morale. 4. To minimize the occurrence of strikes, lockouts and gheraos. 5. To encourage and develop trade unions in order to improve workers collective strength and resolving their problems through collective bargaining. 6. To establish, develop and maintain industrial democracy. 7. To facilitate government control over industries in regulating production and for protecting employment. 8. To check and ensure a healthy and balanced social order in the industry. Approaches to IR The popular approaches to IR are: Unitary, Pluralistic, Marxist and Human relations approach. 1. Unitary Perspective: In unitary, the organization is perceived as an integrated and harmonious system, viewed as one happy family. • A core assumption of unitary approach is that management and staff, and all members of the organization share the same objectives, interests and purposes; thus working together, hand-in- hand, towards the shared mutual goals. • Trade unions are deemed as unnecessary and conflict is perceived as disruptive. Approaches to IR Cont’d From employee point of view: • Working practices should be flexible. Individuals should be business process improvement oriented, multi-skilled and ready to tackle with efficiency whatever tasks are required. • If a union is recognized, its role is that of a further means of communication between groups of staff and the company. • The emphasis is on good relationships and sound terms and conditions of employment. • Employee participation in workplace decisions is enabled. This helps in empowering individuals in their roles and emphasizes team work, innovation, creativity, discretion in problem-solving, quality and improvement groups etc. Approaches to IR Cont’d From employer point of view: • Staffing policies should try to unify effort, inspire and motivate employees. • The organization’s wider objectives should be properly communicated and discussed with staff. • Reward systems should be so designed as to foster to secure loyalty and commitment. • Line managers should take ownership of their team/staffing responsibilities. • Staff-management conflicts are seen as arising from lack of information, inadequate presentation of management’s policies. Approaches to IR Cont’d 2. Pluralistic-Perspective: In pluralism the organization is perceived as being made up of powerful and divergent sub- groups - management and trade unions. • This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. • Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. • Trade unions are deemed as legitimate representatives of employees. • Conflict is dealt by collective bargaining and is viewed not necessarily as a bad. • Realistic managers should accept conflict to occur. Approaches to IR Cont’d The implications of this approach include:· • The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation. • Independent external arbitrators should be used to assist in the resolution of disputes. • Union recognition should be encouraged and union representatives given scope to carry out their representative duties· • Comprehensive collective agreements should be negotiated with unions Approaches to IR …. 3. Marxist Perspective: Marx argued that: • Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. • Capitalism would foster monopolies. • Wages (costs to the capitalist) would be minimized to a subsistence level. • This perspective focuses on the fundamental division of interest between capital and labor, and sees workplace relations against this background. • Conflict is seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Approaches to IR …. 4. Human Relations Approach: • The Human relations approach is propounded by Elton Mayo, who is a humanist and believes in the positive nature of the employees. • According to him, given human initiatives from management, the employees positively listens and responds properly to them and hence there is no room left for the conflict to arise. • But however Marxists and Pluralists did not appreciate too much stress on the positive nature of the workers. • Thus, these approaches to industrial relations must be properly understood by the HR managers as these offer a solid foundation for much of the role of human resource management. Measures to Improve IR 1. Support of Top Management: Top management action always be proactive and geared to problem solving and its action and decision must be in favor of an organization and employees. 2. Sound Personnel Policies: personnel policies constitute the business philosophy of an organization and guide it in arriving at human relations decisions. Sound policies and rules are of little help unless they are executed objectively and equitably at all the levels of an organization. Positive Attitudes: Both top management and trade union should adopt positive attitudes towards each other, they help them to understand problem of each and which can be solved by collective bargaining. ….. to Improve IR 3. Collective Bargaining: Agreements and association of employees in decision making process will bring about cooperation between labor and management. 4. Strong Trade Union and Sound Employers’ Union: • Industrial relations can be sound only when the bargaining power of the employees’ union is strong and equal to that of management. • Employers’ union should also be sound and well organized. • Sound management are helpful for the maintenance and promotion of uniform personnel policies among various organizations and to protect the interest of weak employers. ….. to Improve IR 5. Additional suggestions : • There should be well established and properly administered grievance redress machinery, sometimes which provides an outlet for tensions and frustrations of workers. • Job supervisors should be trained thoroughly to ensure that organizational policies and practices as well as leadership and communication skill, which help them too properly, implemented and carried into effect. • A regular follow up of IR programmed is essential. Significance of Good Industrial Relations 1. Industrial Peace: Good industrial relations bring harmony and remove causes of disputes. This leads to industrial peace, which is an ideal situation for an industrial unit to concentrate on productivity and growth. 2. High Morale: Cordial industrial relations improve the morale of the employee. • It implies the existence of an atmosphere of cooperation, confidence, and respect within the enterprise. • Consequently, there is higher productivity, higher income, and increased job satisfaction – all resulting in higher morale of the workforce. Significance ….. 3. Mental Revolution: Sound industrial relation completely transforms the outlook of employers and employee. This motivates the workers to give their best to the organization and share the fruits of progress jointly with the management. 4. Reduced Wastage and Increased Productivity: It helps in increasing production. Thus, they will contribute to the economic growth of the countries. 5. Programs for Workers Development: New programs for workers development are introduced in an atmosphere of peace such as training facilities, labor welfare facilities etc. Industrial Disputes • Industrial Disputes is defined as any dispute or difference between employers and employers or between employers and workers, or between workers and workers, which is connected with the employment or non-employment. • The term ‘dispute’ is characterized by the following factors: – Dispute mainly relate to the strife between employers and their employees. – There must actually be a difference. – Its work related or industrial matter issues. – Disputes must be raised by group or class of workmen. – Disputes between one or two workmen and their Forms of Industrial Disputes 1) Strikes: A strike means a termination of work by a body of persons employed in any industry acting in combination or a concerted refusal under a common understanding of a number of persons who are or have been so employed to continue work or to accept employment. Strikes are of several types: – Economic Strike – Sympathetic Strike – General Strike – Set down Strike – Slow Down Strike – Hunger Strike ….. Industrial Disputes 2) Lock Out: lock out is the counterpart of strike. • Lock outs bring psychological pressure on the workers to agree to his conditions or face closure of the units. • A lockout is decaled as a trial of strength between the management and its employees. • Lockouts means the employer closes down his factory where his workers are employed because he wants to force them to agree to his terms and conditions of service during the pendency of a dispute. 3) Gherao: Its means “to surround”. • According to National Commission on Labor “ Gherao tend to inflict physical duress on the persons affected and endanger not only industrial harmony but also create problems of law and order”. ….. Industrial Disputes 4) Picketing: It is primarily a method of drawing public attention towards the disputes and it is legal so there is no violence is involved. In picketing, workers are dissuaded from reporting for work by certain persons stationed at the gate of the factory. 5) Boycott: Boycott aims at disrupting the normal functioning of an enterprise, through forceful appeals and negative behavioral acts. Causes of Disputes 1. Wages and Allowances: High inflation results in increased cost of living resulting in never ending demands from unions. There are some more economic reasons who are the cause of industrial disputes are bonus, working conditions and working hours, modernization and automation and demand for other facilities. 2. Union Rivalry: Most organizations have multiple unions. Multiplicity of unions leads to inter union rivalries. If one union agrees to a wage settlement, another union will oppose it. Causes …… 3. Political Interference: Major trade unions are affiliated to political parties. • Everywhere trade union have been compelled to engage in political action to obtain enough freedom from legal restraint to exercise their main industrial functions. 4. Managerial Causes: These causes include autocratic managerial attitude and defective labor policies. • Failures of recognize the trade union, defective recruitment policies, irregular layoff and retrenchment, defiance of agreements and codes, defective leadership, weak trade unions. Causes …… 5. Unfair labor Practices: The following constitute unfair labor practices: • Force workmen in the exercise of their right to organize, form, join or assist a trade union. • Threatening workmen with discharge if they join a trade union • Threating a lockout or closure, if a trade union is organized • Granting wage increases to workmen at crucial periods of the trade union organization, with a view to undermine the efforts of the trade union at organization. • To, dominate, interfere with or contribute support, financial or otherwise, to any trade union. Causes …… 6. To encourage or discourage membership in any trade union by discriminating against workmen. 7. To discharge or dismiss workmen. 8. To indulge in acts of force or violence. 9. To refuse to bargaining collectively, in good faith with the recognized trade unions. 10.To insist upon individuals workmen, who are on a legal strike, to sign a good conduct bond as a precondition to allowing them to resume work? Prevention of Industrial Disputes 1. Collective Bargaining: – Collective bargaining not only includes negotiation, administration and enforcement of the written contracts between the employees and the employers but also includes the process of resolving labor management conflicts. Collective bargaining offers the following benefits: – Increase economic strength of both the parties at the same time protecting their interest. – Helps resolve disputes when it is occur in the organization. – Establish uniform conditions of employment with a view to avoid occurrences of industrial disputes. Prevention….. 2. National Arbitration Promotion Board: • Arbitration is a procedure in which a neutral third party studies the bargaining situation, listens to both the parties and gathers information, and then makes recommendations that are building on the parties. 3. Grievance Redresal Procedure: • A grievance may be understood as an employee’s dissatisfaction or feeling of personal injustice relating to his or her employment relationship. • A grievance is generally well- defined in a collective bargaining agreement. Code of discipline should develop which is ratified by the trade union and employers’ organization. Prevention….. 4. The Implementation Machinery: • The main function of consultative machinery is to bring the parties together for mutual settlement of difference in a spirit of co-operation and goodwill. • Consultative machinery operates at the plant, industry, national and state levels. • At the plant level, there are works committees and joint management councils. Being essentially bipartite in character, Work committee are constituted • At the industry level, there are Wage Boards and Industrial Committees. 5. Workers Participation in Management: • It is a method whereby the workers are allowed to be consulted and to have a say in the management of the unit. Prevention….. 6. Tripartite Bodies: • Tripartite bodies composed of employer, employee and government have been set up for consultation and discussion on problems of labor to solve it out. 7. Model Standing Orders: • Government enacted the Industrial Employment to avoid frictions amongst employers and workmen over the terms of employment. • Such conditions include conditions of recruitment, discharge, disciplinary action, holidays, leave etc of the workers. Settlement of Industrial Disputes • If dispute could not be prevented on voluntary basis and do arise, steps have to be taken for their settlement. The followings are method of settling industrial disputes: 1) Arbitration: • It is a procedure in which a neutral third party studies the bargaining situation listen to both the parties and gathers information and then make recommendation that are binding the parties. • It is effective because established by the parties themselves and the decision is acceptable to them and relatively expeditious when compared to courts or tribunals. Settlement …. 2) Conciliation: It is a process by which representatives of workers and employees are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. 3) Collective Bargaining: it is a process by which employers on the one hand and representative of the employees on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services. 4) Code of Discipline: settle conflicts on the bases of duties and responsibilities of employers and workers. Settlement …. 5) Grievance Procedures: A grievance may be understood as an employee’s dissatisfaction or feeling of personal injustice relating to his or her employment relationship. There are some condition which may give rise to a grievance are like a violation of law, a violation of the intent of the parties as stipulated during contract negotiation , a violation of company rules, a change in working conditions or past company practices and a violation of health and /or safety standards. Settlement …. 6) Adjudication: it is means a mandatory settlement of an industrial dispute by a labor court or a tribunal. Whenever an industrial dispute remains unresolved by the conciliation officer and the board of conciliation, the matter is referred in a court of inquiry. 7) Consultative Machinery: It is set by the government to resolve disputes. The main function of this machinery is to bring the parties together for mutual settlement of differences in a spirit of co-operation and goodwill. Collective Bargaining • Collective bargaining is the process by which a labor union and employer negotiate over the terms of the employment relationship. • According to an ILO Manual in 1960, the Collective Bargaining is defined as: “Negotiations about working conditions and terms of employment between an employer, a group of employees or one or more employers organization on the other, with a view to reaching an agreement.” • The primary goal of collective bargaining is the achievement of a collective bargaining agreement between the union and employer. Essential Pre-Requisites for Collective Bargaining:
Effective collective bargaining requires the following pre
requisites: i. Existence of a strong representative trade union in the industry. ii. Existence of a fact-finding approach and willingness to use new methods and tools for the solution of industrial problems. iii. Existence of strong and enlightened management. iv. Agreement on basic objectives of the organization between the employer and the employees and on mutual rights and liabilities should be there. v. Unfair labor practices must be avoided by both the parties. Essential Pre-Requisites …. vii. Proper records for the problem should be maintained. viii. Collective bargaining should be best conducted at plant level. ix. There must be change in the attitude of employers and employees. They should realize that differences can be resolved peacefully on negotiating table without the assistance of third party. x. No party should take rigid attitude. xi. When agreement is reached after negotiations, it must be in writing incorporating all term of the contract. Main Features of Collective Bargaining: 1. It is a Group Action: • Collective bargaining is a group action as opposed to individual action. • Both the parties of settlement are represented by their groups. • Employer is represented by its delegates and, on the other side; employees are represented by their trade union. 2. It is a Continuous Process: • Collective bargaining is a continuous process and does not end with one agreement. • It is a process that goes on for 365 days of the year. Main Features …. 3. It is a Bipartite Process: • It is a two party process. Both the parties— employers and employees— collectively take some action. • There is no intervention of any third party. 4. It is a Process: • Collective bargaining is a process in the sense that it consists of a number of steps. • The starting point is the presentation of charter of demands by the workers and the last step is the reaching of an agreement. Main Features …. 5. It is Flexible and Mobile and not Fixed or Static: • It has fluidity. • There is no hard and fast rule for reaching an agreement. • There is ample scope for compromise. 6. It is Industrial Democracy at Work: • Collective bargaining is based on the principle of industrial democracy where the labor union represents the workers in negotiations with the employer or employers. 7. It is Dynamic: • It is relatively a new concept, and is growing, expanding and changing. • In the past, it used to be emotional, turbulent and sentimental, but now it is scientific, factual and systematic. Main Features …. 8. It is a Complementary and not a Competitive Process: • Each party needs something which the other party has, namely, labor can put greater productive effort and management has the capacity to pay for that effort and to organize and guide it for achieving the enterprise’s objectives. 9. It is an Art: • Collective bargaining is an art, an advanced form of human relations. Main Hindrances for Collective Bargaining 1) Competitive Process: • Collective bargaining is generally becoming a competitive process, i.e., labor and management compete each other at negotiation table. • A situation arises where the attainment of one party’s goal appears to be in conflict with the basic objectives of the other party. 2) Not Well-Equipped: • Both the parties—management and workers— come to the negotiation table without doing their homework. Main Hindrances …. 3) Time to Protest: • In a period of recession, when demand of the product and the profits are falling, it is very difficult for the employer to meet the demands of the workers, It might even resort to retrenchment or even closure collective bargaining is no answer to such a situation. 4) Where Prices are Fixed by the Government: • In industries, where the prices of products are fixed by the Government, it becomes very difficult for the employer to meet the demands of workers which would inevitably lead to a rise in cost of the products produced. Main Hindrances …. 5) Outside Leadership: • When trade unions are led by outsiders who are not the employees of the concerned organizations. Leader’s interests are not necessarily to be identical with that of the workers. 6) Multiplicity of Trade Unions: • In a multiple trade union situation, even a well recognized, union with long standing, stable and generally positive relationship with the management, adopts a militant attitude as its deliberate strategy. Main Hindrances …. 7) Appointment of Low-Status Executive: • Such executive has no authority to commit anything on behalf of the management. • It clearly indicates that the management is not at all serious and the union leaders adopt other ways of settling disputes. 8) Statutory Provisions: • The constraints are also imposed by the regulatory and participative provisions as contained in the Payment of Wages Act, the Minimum Wages Act, and Payment of Bonus Act etc. • Such provisions are statutory and are not negotiable. Main Hindrances …. 9) Fresh Demands at the Time of Fresh Agreement: • At the time when the old agreement is near expiry or well before that, workers representatives come up with fresh demands. 10) Agreements in Other Industrial Units: • A prosperous industrial unit in the same region may agree with the trade unions to a substantial increase in wages and other benefits whereas a losing industry cannot do that. Employee Participation Schemes • Employee participation is the process whereby employees are involved in decision making processes, rather than simply acting on orders. • Employee participation is part of a process of empowerment in the workplace • The important forms in which workers can participate in management are- collective bargaining, joint administration, joint decision-making, consultation and information sharing. • The direct participation of staff to help an organization fulfill its mission and meet its objectives by applying their own ideas, expertise, and efforts towards solving problems and making decisions. Ways of Participation of Employees in Decision Making 1. Participation at the Board Level: • Representation of employees at the board level is known as industrial democracy. • This can play an important role in protecting the interests of employees. 2. Participation through Ownership: • Making employees shareholders of the company. • Inducing them to buy equity shares, advancing loans, giving financial assistance to enable them to buy equity shares are some of the ways to keep them involved in decision-making. Ways of Participation …… 3. Participation through Collective Bargaining: • This refers to the participation of workers through collective agreements and by deciding and following certain rules and regulations. • This is considered as an ideal way to ensure employee participation in managerial processes. 4. Participation through Suggestion Schemes: • Encouraging employees to come up with unique ideas can work wonders especially on matters such as cost cutting, waste management, safety measures, reward system, etc. • Developing a full-fledged procedure can add value to the organizational functions and create a healthy environment and work culture. Ways of Participation …… 5. Participation through Complete Control: • This is called the system of self management where workers union acts as management. • Through elected boards, they acquire full control of the management. • In this style, workers directly deal with all aspects of management or industrial issues through their representatives. 5. Participation through Job Enrichment: • Offer freedom to employees to exploit their wisdom and use their judgment while handling day-to-day business problems. Ways of Participation …… 6. Participation through Quality Circles: • A quality circle is a group of five to ten people who are experts in a particular work area. • They meet regularly to identify, analyze and solve the problems arising in their area of operation. • Anyone, from trade unions, who is an expert of that particular field, can become its member. 7. Others: • Such as financial participation, Total Quality Management, participation through empowered teams and joint committees and councils through which they can contribute their share in making the organizations a better place to work. Marketing Knowledge Workers • Knowledge is always embodied in a person; carried by a person; created, augmented, or improved by a person; applied by a person; taught and passed on by a person; used or misused by a person. • The shift to the knowledge society therefore puts the person in the center • Knowledge workers are workers whose main capital is knowledge. • Examples include programmers, physicians, pharmacists, architects, engineers, scientists, design thinkers, public accountants, lawyers, and academics, and any other white-collar workers, whose line of work requires one to "think for a living". …. Knowledge Workers knowledge worker retention is best promoted when: a) The organization’s leadership recognizes and expressly values the strategic importance of knowledge management b) When it cultivates an active learning culture c) When its HR programs and practices support KM processes. • knowledge work is often the source of new ideas. • To get the most from your knowledge workers, and to create an environment where new ideas can flow and flourish, follow some of these basic leadership and management practices. Managing knowledge • Knowledge management is the conscious process of defining, structuring, retaining and sharing the knowledge and experience of employees within an organization. • The main goal of knowledge management is to improve an organization's efficiency and save knowledge within the company. • Often it is referring to training and learning in an organization or of its customers. • It consists of a cycle of creating, sharing, structuring and auditing knowledge, in order to maximize the effectiveness of an organization’s collective knowledge. Benefits of knowledge management • More efficient workplace • Faster, better decision making • Increased collaboration • Building organizational knowledge • Onboarding and training process is optimized • Increased employee happiness and retention, due to the valuing of knowledge, training, and innovation • Knowledge management is an important tool in any company that wants to increase their bottom line and market share. How to Manage Knowledge Workers 1. Be a 'Coach,' Not a 'Boss‘ • Knowledge workers like autonomy. • They usually don't want someone closely overseeing and supervising their work. • Instead, they probably prefer managers to clear the way for them to work productively. • As a manager, you're responsible for things like budgeting and planning, and this takes you further away from 'doing' things yourself. • To maintain knowledge workers' trust and respect, stay aware of the work they're doing, and coach them as needed. • Bosses of knowledge workers are often knowledge workers themselves. How to Manage … 2. Explain the Big Picture • Knowledge workers often need to know 'why' as much, if not more, than they need to know 'what.' • Don't ask knowledge workers to improve a product's design without telling them why it needs improving – and how the improvements will benefit the performance of the company. • Find out what their interests and goals are, and then aim to align those to the work they do within the organization. • Be willing to customize projects to a knowledge worker's interests. How to Manage … 3. Get Creative With Performance Metrics • Knowledge work is mostly unseen, and therefore difficult to measure. • You can't watch knowledge being created in the same way as a physical, tangible product. • It's impossible to measure the inputs, look instead at the outputs, and decide which results are most important to your organization. • By looking at what's most valuable in terms of output, you can usually identify some key performance indicators. How to Manage … 4. Treat Knowledge Workers as Individuals • When you treat all of your knowledge workers alike, you may miss opportunities to discover what motivates them individually and what each one needs to be more creative and productive. • Everything can be personalized, the technologies you make available, the work environment, the work schedule, and so on. • Your knowledge workers get results in ways that are very different from traditional workers, so be open and flexible with their work resources, terms, and conditions. Key Points • Knowledge workers are usually responsible for exploring and creating ideas, rather than implementing and managing existing processes. • knowledge workers are expected to produce results that are different from traditional workers, you should also manage them and measure their performance differently. • Have an open mind, and recognize the different needs and motivations of knowledge workers. • This will make it much easier to find creative and effective ways to keep their productivity high. Thank You !!
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