TOPIC: INDUSTRIAL

RELATION

Presented By:
❑ Prasant
❑ Rahul Sharma
❑ Bhanu Prakash
❑ Rajeshwari
What is industrial relation?

Industrial relation is the relationship between the employer and the

individual worker and a group of workers within the industry.
Industrial relation aims at building a strong relationship between the
employees and the employer as well as among the employees themselves.
A strong industrial relationship ensures the protection of employees’
interests and the successful attainment of organizational objectives in a
smooth and efficient manner.
A good industrial relation indicates industrial discipline and peace. The
basis of industrial relations is mutual understanding and cooperation.
Components of Industrial Relation:

Some of the major parties to industrial relations are as follows: 1. Employees

2. Employer 3. Government.
1. Employees:
Among the participants in IR, employees are considered the most affected by
the IR system in an organization. Employees with their various
characteristics such as their commitment to the work and the organization,
their educational and social background, their attitudes towards the
management, and so on affect and are affected by the system of IR.
Group of employees makes a association is called employee association.
.2.Employer:

Employer is the second party to IR. In the corporate organization, the

employer is represented by the management. Hence, management
becomes responsible to various stakeholders in an organization including
employees.
Group of employers forms associations called employer association.
3. Government:
The government exerts an important influence on IR through such
measures as providing employment, intervening in working relationship,
and regulating wages, bonuses, and working conditions through various
laws relating to labor.
The government keeps an eye on both the trade unions
and the employer’s organizations to regulate their
behaviors in the interests of the nations.
Approaches to Industrial Relations
Approach # 1. Unitary
The unitary approach is based on the strong argument that there is only one source of
authority i.e., the management, which owns and controls the dynamics of
decision-making in issues relating to negotiation and bargaining. Under the unitary
approach, industrial relations are grounded in mutual cooperation, individual treatment,
teamwork, and shared goals.
Approach # 2.Pluralistic:
The pluralistic approach totally departs from the unitary approach and assumes that the
organization is composed of individuals who form distinct groups with their own set of aims,
objectives, leadership styles, and value propositions.
Approach # 3.Marxist:
This is also known as the ‘Radical Perspective’, the Marxist approach is based on the
proposition that the economic activities of production, manufacturing and distribution are
majorly governed by the objective of profit. Marxists, like the pluralists, regard conflict
between employers and employees as inevitable
 IMPORTANCE OF IR:
Benefits to worker:
i. It makes the functioning of the industrial activities of the organization smooth and effective
and keeps workers’ deployment process uninterrupted/unaffected.
ii. It increases production and productivity as workers find a congenial atmosphere to work in.
iii. It creates a climate of cooperation where both labor and management come close, develop
understanding, and solve disputes and grievances mutually.
2. Benefits to Management:
i. Industrial conflict becomes less/zero.
ii. Production and productivity tend to be on the higher side as workers participate in
organizational activities as members of the team and intend to grow with the growth of the
company.
iii. Customers’ delight is possible through the delivery of quality goods and personalized services.
TRADE UNION

Trade Unions are basically associations of workers and are

formed with the aim of protecting the workers against
exploitation by their employers and also improving their
living conditions.
EXAMPLES;
• Indian National Trade Union Congress (INTUC) May 3, 1947.
• Bhartiya Mazdoor Sangh (BMS)
• Hind Mazdoor Sabha (HMS)
• Self-employed Women's Association of India (SEWA)
TYPES OF TRADE UNION:
There are 4 types of trade unions.
1. Craft Unions:
If the workers of the same craft or category of the job form into a union, that
union is called ‘craft union’. These unions are called– ‘horizontal unions’.
Examples of such unions are Drivers’ Associations, Signaling Staff Union in
Indian Railways, etc.
2. General Unions:
If the workers of any industry, any region and of any job or occupation
form into one union in order to protect the overall interests of the
workers, such unions are called general unions.
3.Industrial Unions:

If the workers of different categories form a union, that union is called an

industrial union. These unions are also called “vertical” unions. The logic
behind the formation of these unions is that workers of the same industry
have a common bend and they are governed by the same rules and
regulations and are administered by the same management.
4. Federation and Confederation:
industrial unions, either of the same industry or of different industries may
form into an association in order to improve trade union unity/strength.
Such unions of unions are called Federations. During critical situations,
unions/federations in different industries may resort to concerted action
without losing their individuality.
STRIKES
A strike is commonly considered the last weapon in the armory of
organized labor for settling industrial disputes. When all other options
for amicable settlement of an industrial dispute have been exhausted and
negotiations with the employer have failed, the workmen resort to strike
action.
Strikes are important not only from the industrial point of view but also
from social and economic points of view as well as they leave an impact on
society as they do on labor and employees.
Types of strikes
Strikes can be divided into two categories:
1. Primary strike – Primary strike is done by workers when they have a
dispute against their employer.
.Primary strikes are
1. Economic stike.
2. General strike.
3. Stay-in strike.
4. Slow down strike.
2. Secondary strike – In secondary strike employees remain in and occupy
the employer’s premises as a protest and means of forcing compliance with
demands.
. Secondary strike is:
.i. Sympathetic Strike
ii. Boycott
iii. Picketing
iv. Gherao
 CONFLICTS:
Industrial conflict occurs when employees express their dissatisfaction with
management over the current state of the management-employee
relationship. The causes of such dissatisfaction are typically matters related
to regular wage payment, wage increases, or remunerations according to
the terms of the employment contract. Employees can express such
dissatisfaction in formal or informal ways. Formal methods are organized
and are planned in advance, while informal ones are spontaneous and
unorganized, usually taking management by surprise
 METHODS OF MANAGING CONFLICTS:
1. Accommodation :
This is a lose/win situation. The accommodation approach is generally used when one party is willing
to fortify its position. It is best used in situations where:
One party wishes to indicate a degree of fairness.
People wish to encourage others to express their own opinion.
The issue or problem is more important to the other party concerned.
It is more important to safeguard the relationship rather than argue about the issue.
2. Compromise :
This is a win/lose – win/lose situation, i.e. everyone involved gains and loses through negotiation and
flexibility. Each will win some of what they desire while at the same time giving something up. The
main goal of this approach is to find common ground and maintain the relationship. Compromise is
best used:
To achieve an agreement when all parties have equal power.
To reach a temporary resolution in more complicated matters.
3. Avoidance :
This is a lose/lose situation. Neither party takes action to address the issues
involved in the conflict, meaning that it will remain unresolved. This approach
is best used:
• If all concerned feel that the issue is a minor one and will be resolved in
time without any fuss.
• When the parties need a chance to cool down and spend time apart.
• If other people are able to resolve the conflict more effectively than the
parties concerned.
• When more time is needed before thinking about dealing with the issues.
• If the impact of dealing with the situation may be damaging to all parties
involved.

4. Competition:
This is a win/lose situation. One party attempts to win the conflict through
dominance and power. This approach is best used:
• When all other methods have been tried (and failed).
• In emergency situations when quick, immediate and decisive action is called
for.
• In situations where unpopular changes need to be applied and discussion is not
appropriate.
5. Collaboration:
This is a win/win situation. It is the most effective but most difficult way of
managing differences. It requires trust and commitment on all sides to reach a
resolution by getting to the heart of the problem. All parties need to be willing to
empathize and try to understand each other’s situation. Collaboration is most
appropriate:

• When all parties are willing to investigate alternative solutions together that
they may not necessarily have thought of on their own.
• When trying to get to the source of problems that have continued for a long
time.
• When upholding objectives that cannot be compromised on any side while still
preserving the relationship.
• When parties from different backgrounds and experiences are involved.
DISPUTES:
The conflict of interest between management and labor is what leads to industrial
disputes.
According to the Industrial Dispute Act, 1947. Section 2 (K) “Industrial Disputes
mean any dispute or difference between employers and employers or between
employers and workmen or between workmen and workmen, which is connected
with the employment or non - employment or terms of employment or with the
conditions of labor of any person”
Thank you