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1.1 Introduction
Industrial relations have its roots in the industrial revolution which created the modern
employment relationship by generating free labour markets and large-scale industrial
organizations with thousands of wage workers. As society fought with these massive
economic and social changes, labor problems arose. Low wages, long working hours,
monotonous and dangerous work, and abusive supervisory practices led to high
employee turnover, violent strikes, and the threat of social instability. Intellectually,
industrial relations were formed at the end of the 19th century as a middle ground
between classical economics and socialism.
The relation between workers and management have undergone tremendous changes
in our country there had been a system of king and his subjects, all should work to
improve the assets of the king. Later Zamindars came and workers were at their
mercy - some time bonded also, later with the formation of East India Company and
British Rule a heartless hire and fire system was established Industrial workers were
no mans child neither the employers nor government cared for them, there were no
union also. Gradually enlightened leaders came in like, Gokale, MK Gandhi Roy,
Tilak etc. felt the need for workers union. Their ruthless efforts forced both
governments and the employers to think of workers lot small unions were reformed,
government enacted rules like Trade union Act 1926, Industrial disputes Act etc.
1.5 Limitations
The study of Industrial Relations is comprehensive and vast. Only limited part of it is
covered in this study and detailed briefly.
CHAPTER 2
INDUSTRIAL RELATIONS
Introduction
Industrial relations constitute one of the most delicate and complex problems of the
modern industrial society. This phenomenon of a new complex industrial set-up is
directly attributable to the emergence of Industrial Revolution. The pre-industrial
revolution period was characterized by a simple process of manufacture, small scale
investment, local markets and small number of persons employed. All this led to close
proximity between the manager and the managed. Due to personal and direct
relationship between the employer and the employee it was easier to secure
cooperation of the latter. Any grievance or misunderstanding on the part of either
party could be promptly removed. Also, there was no interference by the State in the
economic activities of the people. Under such a set-up industrial relations were
simple, direct and personal. This situation underwent a marked change with the
advent of industrial revolution size of the business increased needing investment of
enormous financial and human resources, there emerged a new class of professional
managers causing divorce between ownership and management, and relations
between the employer and the employer became entranged and gradually antagonistic.
This new set-up rendered the old philosophy of industrial relation irrelevant and gave
rise to complex, indirect, and impersonal industrial relations.
Industry today is neither viewed as a venture of employers alone nor profit if
considered as its sole objective. It is considered to be a venture based on purposeful
cooperation between management and labour in the process of production and
maximum social good is regarded as its ultimate end and both management and
employees contribute in their own way towards its success. Similarly, labour today is
no more an unorganized mass of ignorant works ready to obey without resentment or
protest the arbitrary and discretionary dictates of management. The management has
to deal with employees today nto as individuals but also as members of organized
social groups who are very much conscious about their rights and have substantial
bargaining strength. Hence, the objective of evolving and maintaining sound
industrial relations is not only to find our ways and means to solve conflicts to resolve
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differences but also to secure the cooperation among the employees in the conduct of
industry.
But maintaining smooth industrial relation is not an easy task. Almost all the
industrialized countries of the world fact the problem of establishing and maintaining
good management worker relationships in their industries. Each country has sought to
find our solution, depending upon its economic, social and political environment.
However, industrial conflict still arises and therefore establishment and maintenance
of satisfactory industrial relations forms an important plank in the personnel policies
of modern organization.
Meaning
In the broad sense, industrial relations cover all such relationships that a business
enterprise maintains with various sections of the society such as workers, state,
customers and public who come into its contact.
In the narrow sense, it refers to all types of relationships between employer and
employees, trade union and management, works and union and between workers and
workers. It also includes all sorts of relationships at both formal and informal levels in
the organization.
The term industrial relations has been variously defined. J.T. Dunlop defines
industrial relations as the complex interrelations among managers, workers and
agencies of the governments. According to Dale Yoder industrial relations is the
process of management dealing with one or more unions with a view to negotiate and
subsequently administer collective bargaining agreement or labour contract.
In industrial relations, therefore, one seeks to study how people get on together at
their work, what difficulties arise between them, how their relations including wages
and working conditions etc., are regulated. Industrial relations, thus, include both
industrial relations and collective relations as well as the role of the state in
regulating these relations. Such a relationship is therefore complex and
multidimensional resting on economic, social, psychological, ethical, occupational,
political and legal levels. There are mainly two set of factors that determine the state
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of industrial relations whether good or poor in any country. The first set of factors,
described as institutional factors include type of labour legislation, policy of state
relating to labour and industry, extent and stage of development of trade unions and
employers organizations and the type of social institutions. The other set of factors,
described as economic factors include the nature of economic organization capitalist,
socialist technology, the sources of demand and supply in the labour market, the
nature and composition of labour force etc.
Scope
The scope of industrial relations includes all aspects of relationships such as bringing
cordial and healthy labour management relations, creating industrial peace and
developing industrial democracy.
The cordial and healthy labour management relations could be brought in
by collective bargaining.
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The willingness and ability of management and trade unions to deal with the
problems freely, independently and with responsibility.
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They must make the employees feel that they are genuinely interested in their
personal development. To this end, adequate opportunities for appropriate
programmes of 18training and development should be provided.
They must evolve well conceived and scientific wage and salary plan so that
the employees may receive just compensation for their efforts. They must
devise, develop and implement a proper incentive plan for personnel at all
levels in the organization.
They must evolve, establish and utilize appropriate machineries for speedy
redressal of employees grievances.
Organisation
Adjustment an
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Attitudes
Representation
Economic responsibility
Discipline
There is an imperative need of strengthening the democracy and freedom within the
trade unions, encourage workers participation in the process of decision-making and
developing new perspectives in the personnel problems of the trade unionism.
Management and trade unions both have to be aware of the changing value system,
the needs of a new breed of employee, the ever-increasing generational gap in
attitudes towards money, emphasis on quality of life, publics lower frustration
tolerance, changing attitudes towards work and leisure, educations impact on
peoples self-image, rejection of authoritarianism and dogmatism, greater stress on
pluralism and individualism, and search of identity, self-esteem and self-realization.
The ideology based on rationality; moral absolutes leading to situational ethics; and,
economic efficiency resulting in social justice; are the new bases and postulates for
shaping the future industrial relations system in the Indian context.
For achieving the objectives of improved management trade union the following
line fo action is suggested:
Whatever, labour laws may lay down, it is the approach of the management and union
which matters and unless both are enlightened, industrial harmony is not possible. In
fact both managements and workers need a change in their philosophy and attitudes
towards each other. In all fairness, both management and workers should not look
upon themselves as two separate and distinct segments of an organization, but on the
contrary, realize that both are partners in an enterprise working for the success of the
organization for their mutual benefit and interest. It is becoming increasingly obvious
that industrial peace amongst all participants in the industrial relations systems
requires truth as foundation, justice as its rule, love as its driving force, and liberty as
its atmosphere.
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CHAPTER 3
TRADE UNIONISM
Trade unionism is a worldwide movement and the highly strategic position occupied
by trade unions in modern industrial society has been widely recognized. In most
cases, employees associations or trade unions seem to have emerged as protest
movements reaching against the working relationships and condition created by
industrialization. When industrialization begins, organization members have to be
generally recruited from the ranks of former agricultural labour and artisans who have
to adapt themselves to the changed conditions of industrial employment. They have to
be provided with new types of economic security wages / salaries, benefits and
services etc. Often they may have to learn to live together in newly developing
industrial townships and cities and also to adopt themselves to new working
conditions and new pattern of work-rules imposing discipline and setting pace of
work to which they are unfamiliar. Their old habits and traditions do not suffice to
guide them in their daily work-behaviour and in consequence they may be
disorganized and frustrated. Thus the growth of modern industrial organizations
involving the employment of a large number of workers / employees in new type of
working conditions and environment makes them helpless in bargaining individually
for their terms of employment. As observed by Frank Tannenbaum, The emergence
of trade unionism lies in the Industrial Revolution which disrupted the older way of
life and created a new society forged by the shop, the factory, the mine and the
industry.
Meaning
The term Trade Union has been defined in various ways because of wide differences
in the use of this term in different countries. Of all the definitions of a trade union, the
classic definition of the Webbs has been most popular. According to them a trade
union is a continuous association of wage-earners for the purpose of maintaining or
improving the condition of their working lives. Since this definition does not cover
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all the extensions of trade union activities in modern times, a trade union with some
modification may be redefined as a continuous association of wage-earners or
salaried employees for maintaining the conditions of their working lives and ensuring
them a better and healthier status in industry as well as in the society.
One of the main reasons of workers joining a trade union been their belief to
get wages increased and maintained at a reasonable standard through
collective action and their realization that individual bargaining was utterly
useless for this purpose.
The employees may join the unions to ensure a just and fair dealing by
management.
Through collective strength, they restrain the management from taking any
such action which may be irrational, illogical, discriminatory or contrary to
their general interests.
Employees may join the unions because of their belief that it is an effective
way to secure adequate protection form various types of hazards and income
insecurity such as accident injury, illness, unemployment etc.
The employees may join the unions because of their feeling that this would
enable them to communicate their views, ideas, feelings and frustrations to the
management effectively.
Individuals may join the unions in the hope of finding a job through their
influence in the company management.
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Recommendations
of
National
Commission
on
Labour
for
Enlargement of functions
The N.C.L. has stated that the unions must pay greater attention to the basic needs of
its members which are:
CHAPTER 4
4.1 INDUSTRIAL DISPUTES
Meaning
According to Section 2(K) of the Industrial Disputes Act, 1947, and industrial
dispute means any dispute or difference between employers and employees or
between employers and workmen or between workmen and workmen, which is
connected with the employment or non-employment or the terms of employment or
with the conditions of labour of any person.
Thus form the legal point of view, industrial dispute does not merely refer to
difference between labour and capital as is generally thought, but it refers to
differences that affect groups of workmen and employers engaged in an industry.
Essentially, therefore, the differences of opinions between employers and workmen in
regard to employment, non-employment, terms of employment or the conditions of
labour where the contesting parties are directly and substantially interested in
maintaining their respective contentious constitute the subject-matter of an industrial
dispute.
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Lack of strong and healthy trade unionism, lack of a proper policy of union
recognition and inter-union rivalries.
Combination of too much law and too little respect for law even at high levels.
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Agitation and wrong propaganda by selfish labour leaders to further their own
interests of their own party.
Forms of Disputes
Strikes and lockouts are the most common forms of disputes.
Strike
Strike means a cessation of work by a body of persons employed in any industry
acting in combination; or a concerted refusal or a refusal under a common
understanding or an number of persons who are or have been so employed to continue
to work or to accept employment.
Lockout
Section 2(1) of the Industrial Disputes Act, 1947 defines lockout to mean the
temporary closing of a place of employment or the suspension of work, or the refusal
by an employers to continue to employ any number of persons employed by him,
lockout, thus, is the counterpart of strike the corresponding weapon the hands of
employer to resist the collective demands of workmen or to enforce his terms. It has
been held by the courts that the suspension of work as a disciplinary measure does not
amount to lockout. Similarly, temporary suspension of work called lay-off is not lockout.
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Areas of Grievances
Grievances resulting from working conditions
Poor payment
Leave facilities
Seniority
Transfer
Promotion
Communication gap
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CHAPTER 5
5.1 Workers Participation in Management
Workers participation in management is in essential ingredient of industrial
democracy. The concept of workers participation in management is based in Human
Relations approach to management which brought about new set of values to labour
and management.
Traditionally, the concept of Workers Participation in Management (WPM) refers
to participation of non-managerial employees in the decision-making process of
the organisation. Workers participation in management meets the psychological
needs of the workers to a greater extent. That way it may also be treated as the
process of delegation of authority in the general areas of managerial functions.
To quote the version of British Institute of Management, Workers participation
in management is the practice in which employees take part in management
decisions and it is based on the assumption of commonality of interest between
employer and employee in furthering the long term prospects of the enterprise and
those working in it.
In should be borne in mid that when individuals are provided with opportunities
for expression and share in decision-making, they show much initiative and accept
responsibility substantially. The rationale of workers participation in management
lies in that it helps in creation amongst the workers a sense of involvement in their
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The attitude of trade unions towards the schemes is negative as they consider
these schemes are reducing the power of Trade Unions. Some Trade Unions
boycott Joint Management Council meetings.
Management should appreciate the scheme and accept them in full faith.
Thus workers participation in management in India has yet to succeed. It can be done
by educating the workers, creating an environment in the organisatoin for
coordination of workers and management.
collective bargaining serves to bridge the emotional and physiological gulf between
the workers and employers though direct discussions.
Meaning
The term collective bargaining is made up of two words, collective which means a
group action through representation and bargaining, means negotiating, which
involves proposals and counter-proposals, offers and counter-offers. Thus it means
collective negotiations between the employer and the employee, relating to their work
situations. The success of these negotiations depends upon mutual understanding and
give and take principles between the employers and employees.
Definitions
Collective bargaining has different meanings for different individuals or groups. Trade
Unions, management and public interpret the term in their own ways. Let us now
discuss some leading definitions:
According to the Encyclopedia of social sciences, Collective bargaining is a process
of discussion and negotiation between two parties, one or both of whom is a group of
persons acting in concert. The resulting bargain is an understanding as to the terms
and conditions which a continuing service is to be performed. More specifically,
collective bargaining is a procedure, by which employer and a group of employees
agree upon the conditions of work.
The I.L.O. workers manual defines collective bargaining as, negotiation about
working conditions and terms of employment between an employer, a group of
employers or one or more employers organizations, on the one hand, and one or more
representative workers organisation on the other with a view of reaching an
agreement.
Salient Features
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Importance
Whatever labour laws may lay down, it is the approach of employers and trade unions
which matters and unless both are enlightened, industrial harmony is not possible.
Therefore, the solution to common problems can be found directly through
negotiation between both parties and in this context the scope of collective bargaining
is very great.
Collective bargaining is really beneficial forms the stand part of employees and their
unions as well as management. If it works well, it develops a sense of selfresponsibility and self-respect among the employees concerned and thus significantly
paves the way for improved employee morale and productivity.
Collective bargaining restricts managements freedom for arbitrary action and thereby
management learns a new code of behaviour by conceiving of the union as a method
of dealing with employees. The management also comes to know the grievances of
workers in advance and it gives an opportunity to take precautionary measure.
Moreover, collective bargaining opens u the channel of communication between top
and bottom levels of an organization.
From the point of the view of the society, collective bargaining; if property conducted,
result in the establishment of a harmonious industrial climate which helps for the
socio-economic development of the nation. It builds up a system of industrial
jurisprudence by introducing civil rights in industry and ensures that management is
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CHAPTER 6
6.1 EMPLOYEE COMMUNICATION
More effective human relations is engendered through adequate communication. The
origin of the word communication lies in the Latin word communis denoting
common. Therefore communication is concerned with imparting a common idea or
understanding and covers any type of behaviour resulting in an exchange of meaning.
An executives working day is filled with communication of different types like
orders, reports, conversations and rumours. Communication is vital in the relationship
between executive and their subordinates. It is through effective communication that
an executive ultimately gets work done by others. Therefore to be effective, every
executive must know how to communicate. Whilst the tradionalists viewed the
communication purpose as providing the means whereby a plan can be implemented
and action coordinated towards the common goal or end result; the behaviouralists
looked upon it as a means whereby persons in the organisatoin can be motivated to
execute such plans enthusiastically and willingly. Whatever viewpoint is accepted,
effective communications requires an appreciation of its meaning and objectives as
well as of the barriers which effective communication.
Objectives of Communication
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To foster any attitude which is necessary for motivation, cooperation and job
satisfaction.
To encourage social relations among workers by encouraging intercommunication. This would satisfy the basic human need for a sense of
belonging and friendship.
Importance of Communication
Inter-personal roles require managers to interact with supervisors, sub-ordinates, peers
and other outside the organisation. Thus, or co-ordinate action, communication is
necessary. Communication transforms a group of unrelated individuals into a term
that knows what its goals are and how it will try to reach them.
Communication allows people to co-ordinate by providing them with a way to share
information. The first type of information that needs to be shared is what the goals of
the organisatoins are. People need to know where they are heading and why. They
also need directions for their specific tasks.
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Communication is especially important for the task of decision-making. Decisionmakes must share their views on what the problem is and what the alternatives are.
Once a decision has been made, communication is necessary to implement the
decision and to evaluate its results.
It is very difficult to define precisely the term workers education, partly because of
the lack of definitiveness of aim or workers education, and partly due to lack of
unanimity amongst labour experts on these aims. At a Seminar convened by the
I.L.O. in Copenhangen in 1956 to consider the question of workers education, it was
gathered that the participants had very different conceptions of workers educations.
To some, it meant education of the workers as a trade unionist, to others, it meant
basic education for workers who lacked opportunity in formal schooling, to still
others, it meant education of the workers as a member of the community and as a
producer, consumer or citizen.
The term workers education has assumed different meanings in different countries
due to historical reasons. In the United States of America workers education is
considered as synonymous with training in trade union leadership. In the U.K. it
covers trade unionism, general adult education and vocational education. In many
countries of Western Europe, workers education refers to education in citizenship. In
the developing countries, including India, the term workers education is used in its
wider connotation and aims at making the worker a better operative, a better union
member and a better citizen.
According to Harry Laidlar, Workers education is an attempt on the part of the
organized labour to educate his own members under in educational system in which
the workers prescribe the courses of instruction, select the teachers and in
considerable measure furnish the finance. The definition emphasizes upon:
efficiency and advancement; as a citizen for a happy and integrated life in the
community; as a member of a trade union for the protection of his interests as a
member of the working class..
It is , therefore, to bridge the lacuna by illiteracy, to create better understanding of
work and ones own place in national economy, to prepare worker for effective
collaboration with the management, to make him a better citizen, to create leadership
among the ranks of labour, to replace outsiders in trade unions and ultimately to make
them conscious of their rights and responsibilities that workers education aims at.
The scope of workers education is much wider than that of trade union
education.
In workers education, the workers themselves form the curriculum and select
their own teaches.
It is based upon the idea of gaining more the more strength for the bargaining
power of trade and producing workers who should behave as workers,
Understand the basic economic and technical aspect of the industry and the
plant where he is employed so that he can take an intelligent interest in its
affairs;
Lead a clean and healthy life based on a firm ethical foundations; and
CASE
When computerization was studied at Life Insurance corporation of India Mount
Road madras office few years before all the workers and staff came out to the streets
saying we will not allow computer to enter our office It will enter on our dead body
only Such severe opposition was there in the L.I.C against technology advancement
of course today even the lowest paid may be having a computer in their house When
this is the problem of technology and Industrial Relation we have to approach it
continuously in a gentle supportive way. STUDY
1. Even before the machines are to come workers, are to be taken in to confidence tell
them, educate them, and sell them so that they can own them.
2. Tell the workers the disadvantages of remaining static explain the competition
prevailing around the industry locally, and internationally. Explain then how our
leather technology has fallen behind and our leather shops are closing, explain how
our domestic articles consumables are falling down behind china invasion in
marketing we have to awake, arise and proceed in technological advance to compete.
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CHAPTER 7
CONCLUSION
It has been increasingly realized that the industrial system has brought about a
number of complexities which have rendered the management of people in an
organization more difficult and complicated than man power management in earlier
and simpler societies because free, mobile men and women in modern societies whose
complex and ever changing problems for their managers and employers. Therefore,
todays industrial societies have developed a distinct system of management based
upon the experience of over 300 years.
Modern industrial relations represent a blending of older systems with innovation
introduced as society has changed through the ages. Some features of early system
even now persist, while other features are the result of industrial revolution and,
therefore, represent sharp breaks with traditional, creating challenging problems for
the management for many of them may be opposed by the workers.
The employment relationships are not static but dynamic. The most important
characteristic is the persistence of change. Technological advances eliminate long
established jobs and create opportunities that require sharply different patterns of
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experience and education. Higher living standards encourage demands for new
products and services. Economic prosperity permits great economic security, and
public regulation makes the assurance of that security a problem for managers. All of
these changes have made the present system of employment relationships very
complex. Collaboration and cooperation is very necessary to achieve the designated
objectives. Understanding of human behavior is, therefore, very necessary on the part
of those responsible for managing manpower resources.
BIBLIOGRAPHY
WEBSITES LINK TILL 15TH OCTOBER 2014
http://www.rahulgladwin.com/noteblog/business/IR/concept-scope-andobjectives-of-industrial-relations.php
http://mona1634.files.wordpress.com/2012/08/approaches-to-ir-pdf.pdf
http://mospi.nic.in/Mospi_New/upload/SYB2013/CH-41-TRADE
%20UNIONS/Trade%20Unions.pdf
http://www.lawteacher.net/employment-law/essays/grievance-redressalmechanism-under-industrial-disputes-act-employment-law-essay.php
http://www.dol.govt.nz/er/starting/unions/Unions-and-CollectiveBargaining.pdf
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