Background to Industrial Relations.

GIREESH.Y.M.

Understanding/ Appreciating Industrial Relations/Employee Relations

Work dominates the lives of most men and women

and management of employees, both individually and collectively, and remains a central feature of organizational life. Blyton and Turnkoll. The truth of this is asserting itself due to fastchanging business skylines and industrial land- scapes which forces adjustment and readjustment of parameters of employee relations.

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ER has become more strategic and more sensitive

because it is this culture of relationships in the organization that creates symbiotic working and unleashes organizational synergy. The concept of Employee Relations requires proper appreciation. Generally, the term used is Industrial Relations,denoting relationships between management and workers in the industry

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By IR has its roots in the economic and social

changes caused by the Industrial Revolution. The early exploitative processes and practices led to inevitable conflict between labor and capital. The rise of trade unionism, the creation of demarcation lines between managers and managers and an atmosphere vitiated by restricted practices, mistrust and credibility- gaps

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This created

adverasarial,confrontational,mechanistic and legalistic relationships characterized by animosity, divergence irreconcilable aims and disparity. Such a relationship continued for long and this hang over of history has a left bitter aftertaste having a legacy of a narrow passive and limited vision of Industrial Relations.

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The sole focus of IR has been skewed in favour of

dispute resolution,maintainance of relations and on meeting legal requirements. INDUSTRIAL RELATIONS: DEFINITIONS. The term industrial relations refers to the complex of human relationship which emerges in work situations. IR is the art of living together for the purposes of production.-J.Henry Richardson.

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The subject of Industrial Relations deals with

certain regulated and institutionalized relationships in industry.-Allan Flanders The field of industrial relationships includes the study of workers and their trade union,management,employersassociations the state institutions concerned with the regulation of employment. The regulation of relationship is from within, for the parties have to learn to live together by a process of accommodation and adjustment

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According to Dale Yonder ,Industrial Relations deals

with the problems which arise in the context of human relationships when the workers submit themselves to being controlled by the employers. Problems of human relationship arising from the sale of services for a wage and working on the premises of employers and under their control form the subject matter of industrial relations.

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Like a coin it has two faces cooperation and

conflict. The relationship, to use Hegel s expression undergoes change from thesis to antithesis and then back to synthesis. The relationship between labor and management is based on mutual adjustment on interests and goals. It depends upon economic, social ,psychological satisfaction of the parties. Higher the satisfaction.healthier the relationship. In practice however

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It is found that labour and capital constantly strive to

maximize their preffered values by applying resources to Institutions. In their efforts they are influenced by and are influencing others. Both of them augment their respective incomes and improve their power position. The major issues involved in the industrial relations process are terms of employment viz,wages,dearness allowances,bonus,fringe benefits, working conditions viz., leave, working hours, health,safety and welfare,non payment-related situations such as job security,manning,and employment

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Impact of work changes personnel issues sush as

discipline, promotional opportunities and among others,recogniton of trade unions . Enclopaedia Britannica underscores the fact that industrial relations covers both individual and collective relations. 'The subject of industrial relations , therefore individual relations and joint consultation between employers and people at the place of work, collective relations between employers and their organizations and the trade unions and the part played by the state in regulating the relations.

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Industrial Relations is a set of phenomena,

operating both within and outside the work place, connected with determining and regulating the employment relationship.

HRM DIMENSIONS TO EMPLOYEE RELATIONS

It may be reiterated that in a new economic

environment ,only those companies which would follow human resource development welfare oriented policies will have healthy industrial relations.

Difference Between Traditional Relations and Emerging Employee Relations

Sl. No
1
2 3 4 5 6 7 8 9 10 11 12

Dimension
Nature of Relations
Contract Conflict Union Legitimacy Managerial task in relation to labour Key relation Pay Basis of labour management relations Job design Conflict handling Key People Focus of attention

TIR
Pluralist
Emphasis on terms of contract defined rules, contract Institutionalized Unions are acceptable Monitoring Labour management Standardised,based on job evaluation Collective Bargaining Contract Division of Labour Research temporary truce, reactive PM/IR Specialists Personnel procedures

EER
Unitarist
Beyond contract, innovative ways De-emphasized, is pathological Not considered desirable Nurturing customer Performance related Individual Contract Team Work Managing climate and cultureproactive Line People Various culture and structure-and structure- related personnel strategies

Dimension Psychological Contract Behavioral References Relations

Industrial Relations Compliance Norms, customs and Practice

HRM Commitment Values and mission

Low High trust,Pluralist,coll trust,unitarist,ind ective ividual Formal roles hierarchy, division of labour, managing control Flexible roles,flat structure,teamwo rk,autonomy, self-control

Organization Design

APPROACHES TO INDUSTRIAL RELATIONS

The terms industrial relations is used to denote a

specialist area of organizational management and study which is concerned with a particular set of phenomenon associated regulating the human activity of employment. It is, however, difficult to define the boundaries of this set of phenomenon, and therefore, the term itself-in a precise and universally accepted way.

Unitary Perspective.
The unitary perspective is based on the assumption

that the organization is or if it is not ,then it should be an integrated group of people with a single authority/loyalty structure, and a set of common values ,interests, and objectives shared by all the members of the organization. Managements prerogative (it is right to manage,make decisions) is regarded as a legitimate, rational and accepted and any opposition to it(whether formal or informal, internal and external) is seen as irrational.

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The organization is not, therefore regarded as a them

and use situation. There is no conflict between the interests of those supplying capital to the enterprise and their managerial representatives, and those contributing their laborthe owners of the capital and labor are .but complementary partners to the common aims of production, profits, and pay in which every one in the organization has a stake. The underlying assumption of this view, therefore is that the organization system is in basic harmony, conflict is unnecessary and exceptional.

IMLPICATIONS
Conflict: This has two important implications:The

expression of employee dissatisfaction and differences with management is perceived as an irrational activity. Trade Unions are regarded as intrusion into the organization from outside which compete with the management for loyalty of employees. The unitary perspective is found predominantly amongst manager particularly line management

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A manager who heads a revenue-generating

department and is responsible for achieving an organization's main objectives by executing functions such as policy making, target setting, decision making.

 It legitimates its authority role by projecting the

interests of management and employees as being the same and by emphasizing managements role of governing in the best interests of the organization,as a whole. It reassures managers by confirming that conflict (dissatisfaction).where it exists , is largely the fault of the government rather than management. It may be projected to the outside world as a means of persuading them that managements decision and actions are right and the best in the circumstances and that may challenge to them is, at best guided or, at worst rebellious.

PLURALISTIC PERSPECTIVE
This perspective is based on the assumption that the

organization is composed of individuals who unite Into a variety of distinct sectional groups, each with its own interest, objectives, and leadership. The organization is perceived as being multistructured and competivive in terms of groupings,leadership,authority and loyalty and this give rise to complex of tensions and competing claims which have to be managed in the interests of maintaining a viable collaborative structure.

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The underlying assumption of this approach is that

the organization is in a permanent state of dynamic tension resulting from the inherent conflict of interest between the various sectional groups and required to be managed through a variety of roles, institutions and processes. The implications of this view for the nature of conflict and the role of trade unions are very different to those of the unitary approach.

Radical Marxist Perspective

The radical perspective which is also often referred

to as the Marxist perspective, concentrates on the nature of the society surrounding the organization. It assumes and emphasizes that the organization exists within a capitalist society ,where the production system is privately owned .,profit is the key influence on company policy.,control over production is enforced downwards by the owners managerial agents. The Marxist general theory of society argues that

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1.Class (group) conflict is the source of societal change

without such conflict ,society would stagnate. 2.Class conflict arises primarily from the disparity in the distribution of and access to the economic power within society-the principal disparity being between those who own capital those who own capital and those who supply their labor. 3.The nature of the societys social and political institutions is derived from this economic disparity and reinforces the position of the dominant establishment group, for example, through differential access to education, the media,employment,in government and other establishment bodies.

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Social and political conflict in whatever form is

merely an expression of the underlying economic conflict within the society.

Objectives of IR
1.To develop the healthy employer-employee relations.

2.To maintain industrial peace and high productivity.

3.To develop the growth of industrial democracy. 4.To improve the economic conditions of workers. 5.State control on industries for regulating production

and promoting harmonious industrial relations. 6.Socialization or rationalization of industries by making state itself a major employer. 7.Vesting of the proprietary interests of the workers in the industries in which they are employed.

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1.Employer to Individual Employee Relationships.

2.Labour Management Relations.

3.Industrial Peace and Productivity. 4.Industrial Democracy.

5.Liasion Functions.

Forms of Industrial Relations

1.Managing by Contending: 2.Managing by Conceding: 3.Managing by collude:

Theories of Industrial Relations.

Several systematic attempts have been made by

Industrialists., sociologists, and industrial relations theorists to develop the theoretical perspectives to analyze industrial relations and trade unionism. DUNLOP SYSTEM THEORY:(1958). The credit for applying the systems concept to industrial relations goes to Dunlop. It within this perspective that Dunlop analyzes industrial relations systems as a subsystem of society.

Dunlops System Model.

IR=f(a,t,m,p,i).

A= actors, Employers,Workers,and Government.

T=Technological Context M=Market Context,

P=Power Context,
I=Ideological context that helps to bind them

together.

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A refers to the undernoted actors in The IR drama. 1.A hierarchy of managers and their representative in

supervision. 2.A hierarchy of workers(non managererial)and any spokesman and, 3.(Specialized Government Agencies created by the first private Agencies.). The significant aspects of the environment in which the actors interact are: 1.The technological characteristics of the organization, the market budgetary constraints, which impinge on the actors, 2.The locus and distribution of power in the larger society.

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The actors in given contexts,establish rules for the

workplace and work community including those governing the contacts among the actors the actors in an industrial relations system. If further element is required to complete the analytical system an ideology or a set of ideas and beliefs, commonly held by the actors, that to helps to bind or to integrate the system together as an entity.

The Pluralist theory of Flanders.

This theory is also known as Oxford Model.

According to Flanders ,conflict is inherent in an industrial system.Hence,Collective Bargaining is central to the industrial relations system.The rules of the system are viewed as being determined through the rule making process of collective bargaining which is regarded as a political institution involving in a power relationship between the employers and employees.

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The Oxford approach can be expressed in the form

of an equation; r=f(b) or r=(c). Where r=the rules governing industrial relations b = collective bargaining. c= conflict resolved through collective bargaining.

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Evolution of Industrial Relations

In order to understand the issues and problems

associated with industrial relations, it is desirable to study its various evolutionary phases. Practically speaking, the growth of industrial relations in India is no way different from that of other parts of the globe. This is capitalism. The emergence of tripartite consultative system and voluntary and statutory to industrial relations,immensely contributed to the growth of a particular system of industrial relations in our country.

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The ever-growing and fast achanging scientific and

brought forth in the industrial world a unique type of employer- employee relations replacing the traditional master-servant relationship. For a proper theoretical perspective of industrial relations, it seems essential to have a historical review of industrial relations in a few countries.