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DEFINITIONS AND CONCEPTS

• Employee relations consist of all those areas of human

resource management that involve relationships with
employees-directly or through collective agreements where
trade unions are recognised

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 DEFINITIONS AND CONCEPTS

• Relationship will be concerned with the agreement of terms and

conditions of employment and with issues arising from
employment.

• Employee relations practices include formal processes,

procedures and channels of communication

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DEFINITION AND CONCEPTS

i. Industrial Relation is that part of management

which is concerned with the manpower of the
enterprise – whether machine operator, skilled
worker or manager. BETHEL, SMITH & GROUP

ii. Industrial Relation is a relation between

employer and employees, employees and employees
and employees and trade unions. - Industrial
dispute Act 1947

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 Out view on ER

Employee Relation is a much broad concept. It is one of the most

important function of the management that is take care by HR
department. ER department takes care of employee grievances,
employee recognition, and boosting the morale of employees to
make the working environment more healthy, live and at the same
time fulfills the management’s expectations and maintain the work
culture and ethics.

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 Type of Relationship within the organization

Employer
&
Employee
Relationship

Relations within
organization

Employee
& Employee
Employer Relations among
Relationship themselves

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FACTORS INFLUENCING EMPLOYEE
RELATIONS

• Institutional factor
• Economic factors
• Technological factors
• Psychological factors
• Political and legal factors
• Global factors

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INSTITUTIONAL FACTORS

• HR policies and practices

• Organizational climate and culture and value
systems
• Adaptability to change
• Codes of conduct
• Collective bargaining agreements
• Labour unions
• Employers’ organizations/ federations

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 ECONOMIC FACTORS

• Type of ownership: public or private limited,

Whether domestic or MNC, Govt. or private sector
• Nature and composition of the workforce
• The source of labour
• Labour market status
• Disparity of wages between groups
• Level of unemployment

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TECHNOLOGICAL FACTORS

• Work methods
• Type of technology
• Rate of technology change
• Ability of organizations and people to cope with
change

•Since these factors have a direct influence on

employment status, wage level, collective
bargaining process in an organisation.
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PSYCHOLOGICAL FACTORS
• Owners’ attitude
• Perception of the workforce
• Workers’ attitude towards work
• Their motivation, interest, dissatisfaction and
boredom leading from man-machine interface.

•These have a great impact on job and

personal life factors and hence indirectly
impact IR

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 POLITICAL AND LEGAL FACTORS

• Prevalent Political philosophy

• Attitude of government
• The ruling party/ ies ideology
• Labour laws and The legal framework for IR
• Changes in the above framework
• Role of political factions in TUs

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GLOBAL FACTORS

• Role of ILO

• International relations

• Newer formats of business

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DETERMINING FACTORS OF EMPLOYEE
RELATION

• History of industrial relation

• Economic satisfaction of workers
• Social and psychological satisfaction
• Off-the-job conditions
• Enlightened trade unions
• Negotiating skills and attitude of
management and workers
• Public policy and legislation

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DETERMINING FACTORS OF EMPLOYEE
RELATION

• Better education
• Nature of industry
• Monetary benefits
• Safety & security
• Grievance handling
• Recognition & appreciation
• Scope for advancement
• Style of management
• Participation in decision making
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So a well planned Employee Relations is a key to success for healthy
environment, balanced relation where employer & employee both are
completely satisfied and finally to avoid all the conflicts at work place
to get desired results to reached the organizational goals.

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