Unit-IINDUSTRIAL RELATIONS

ByDr.Sitansu PandaLecturer (HRM)Siva Sivani Institute of Management, Secunderabad-14.

INDUSTRIAL RELATIONS

Introduction

Definition & Meaning

Scope

Approaches to Industrial Relations

Models of IR

IR in the Post-Globalization Phase

IR-HR interface

Introduction• Contextual foundation for the study of industrial

relations in India.• Industrialization and labour issues have been

emphasized in different Plan periods.• Key concerns of the Indian economy are: job creation,

skill development, labour mobility, labour commitment, work culture, productivity and competitiveness.

• Welfare oriented economy, protection of domestic market all have been focused for betterment of the labour.

• In this context, it is necessary to study the relationship inside and outside the industry.

Definition and Meaning• Labour- Management relationship is IR.• Various determining factors of IR.

Industrial Relations is the relationship between labour and employer

V.B. Singh has defined that

-IR scenario varies from State to State due to different causes.

-Some are generic and some are specific.

-It is basically the industrialization which determine the IR.

-Each country, factory, industry has evolved its own IRS.

Continued.. Richard Lester has defined that

-IR includes not only dealings between labour organization and industrial management but also all aspects of labour in the economy.

-It includes employee security, management’s employment practices, union policies and Govt. action on labour matters.

Encyclopedia of Social Sciences defines- IR as the relationship between employees and management.- The relationship directly stems from union-employer relationship.

Employee Security

Industrial Management

Security Govt. action Union Policies Mgt. Practices

Union Employer

Employee –mgt relationship

Continued.. ILO defines

- IR as the relationship among the State, Labour and Management.

State

Labour Management

Continued…. John Henry Richardson defined

- IR study is concerned with • relations between parties in the industry.• with the determination of working conditions.• Emphasis is however, upon ‘ Relations’ which is human

relations in the process of production.• The process themselves, material organization of production,

types of machinery & equipment, sales of the organization, banking and the transport system are all outside the subject except the improved efficiency yields more production forms the basis for better working conditions.

• Law of demand & supply of labour, labour market statistics, cost of labour have an important place in economics & business administration.

• But they are not the main concern.• Centre of the stage is held by Men & Women. • The Study of IR can be conveniently divided into four aspects.

• Definition by John Henry Richardson:

INDUSTRY

process material process machinery sales organization banking labour statistics

Not important in IR

Relationship within industry collective

relationship State Role International

aspect

Important concern of IR

• Allan Flander states that- IR deals with certain regulated or institutionalized relations in the

industry. - He excluded personal unstructured relationships from the scope of a

system of IR.- Further, views that only the employment aspect of a business

enterprise is the concern of IR.- Relationships are either expressed or arise out of contracts of

employment/service.- Study of IR is the study of ‘institutions of job regulations’.

IR Concernedwith

Employment Relationship / Job Regulation

Meaning of IR Relationship within an industry.

labour- management relationship.

Employer/ owner, management and workers activities are concerned with IR.

Government acts as a regulating body.

workers form their collective forum as Union.

Industrial Relations mostly deals with collective relationship.

Managers have their associations.

Scope of IR*

Grievance Indiscipline Disputes Collective

Bargaining Machineries

Worker’s Participation in Mgt

Trade unionism Management

Association Approaches

Conflict Aspects Co-operative Aspects

* All the coverage in industrial relations like the actors and their activities along with the role of Govt. have to be discussed in detail so far as the scope is concerned.

DUNLOP’S MODEL ON IRJohn T. Dunlop has given a model on Industrial Relations.It has a tremendous impact on IR field.It is applicable to three broad areas as:

- IR within an enterprise. - IR within a country. - IR in the course of economic development.

Borrowed the concept of SYSTEM from Talcot -Parsons.Parsons has given that every social system has four basic problems/ functions. All the four activities are also applicable to IR.These are : Adaptation, Goal Gratification, Pattern - Maintenance and Integration. (see fig.)All functions are interrelated.

Continues…

ADAPTATION GOAL GRATIFICATION

PATTERNMAINTENANCE INTEGRATION

Adaptation to the environmental challengesGoal Gratification is through the mobilization of resourcesIntegration of effective operation, motivational effort and individual valuesPattern Maintenance to keep the dignity, honour pride & privileges of the system.

A Social System is comprised of Political, Economic and Industrial Relations Sub-system.

All are influenced by the exogenous forces and have interrelationship with one another.

ES

IRS PS

SS

Inter relations

Exogenous influence

• According to Dunlop • An IRS, at any time in its development is regarded as comprised of certain

actors, certain contexts, an ideology which binds IRS together, a body of rules created to govern the actors at the workplace and work community.

• The algebraic equation is r = f (a, t, e, s, i) r : rules governing IR f : functions a : actors t : technical context of workplace and the work community e : market context s : power I : ideology of the actors• The actors are the Govt., Management, trade union and the workers.• There exists hierarchy among workers and managers.• Government administers through the Ministry of Labour, and the Judicial

system like Labour Court, Tribunal .• Govt. role is vital as an IR regulating body.

• Context: power, technology, product market, scale & size of operations, seasonal and cyclical technologies are to be considered.

• Labour Market: wage, availability, cost of labour all are included in the context.

• The system functions through the web of rules and with different ideas.

• The problematic aspect also constitutes a component of IRS.

• The model is given in a figure as follows:

CONTEXT :Technology, market,

Labour, Product,Power.

IDEOLOGY OF

INDUSTRIAL RELATIONS

PROBLEMSOF

INDUSTRIALRELATIONS

WORK RULES: Substantive rules,

Procedures

ACTORS GOVERNMENT

M a n a g e m t.

Union

Workers

Dunlop’s model…… Accordingly, IRS involves three groups of actors as; Workers and their organizationsManagers and their organizationsGovernment agencies concerned with the workplace and the work communityIt creates a complex of RULES to govern the workplace.Rules take a variety of forms in different systems like Agreements, Statutes, Orders, Decrees, Regulations, Awards, Policies .John T. Dunlop’s Book “ Industrial Relations System” , Henry Holt Publications, New York,1958.

Critics on Dunlop’s model:• Power dynamics in this system has been least emphasized

though it is an important factor in IRS.• How input is transformed into output is not given.• Every system must have a transformation system but Dunlop’s

model is silent about this aspect.• It is theoretically acknowledged but practically least applied.• Behavioural factors have not been examined.• Rules are not the ultimate end of IRS rather the products and

services are the end. In every system the rules are the means to an end but not an end in itself. But this model focuses that Rules are the end.

• Although this model has certain limitations, yet; this gives a comprehensive understanding of the IRS.

• On this basis, further developments have been made through different research activities.

A.W.J. CRAIG’S MODEL

• This model is known as Input-output model.• The different environmental aspects have been taken as

the inputs• The technological, economic and political factors and

sub-factors influence the inputs.• Besides, the value & power of the workers, management

are the inputs.• The financial, psychological, social rewards are the main

constituents of output.• In this model there is an evaluation system.• The diagrammatic presentation of the model is as

follows:

Craig’s Model of IRENVIRONMENT

TechnologicalSub-system Economic Sub-systemPolitical Sub-system

INPUT

Values & power

OUTPUT

Rules, Product

INDUSTRALRELATIONS

SYSTEM

Workers Management Govt. agencies

effects

KKM MODEL ON INDUSTRIAL RELATIONS

Thomas A. Kochan, Henry C. Katz and Robert Mckersie have given a theoretical framework of IRS.

The approach draws from the rapidly growing theoretical paradigm.

It integrates traditional theories of IR and literature on corporate strategy, structure and decision making.

It summarizes certain propositions.

Role of environment is given more focus.

The change in environment equally influences the total system.

It takes IRS as an open system.

Continues….. The labour market, workforce characteristics and values, product market, technology, public policies are influencing the IRS.The values, business strategies, strategic activities, collective bargaining, personnel functions, workplace activities are the firm level constituents of the system.The profit of the employer, satisfaction of the workers, labour unions and betterment of the society are the performance outcomes. The past and the current structure of the industry have impact on the IRS.

Continues…• The different levels in management, union and Government

determine the long term/ short term strategy.• It is given as follows:

Level / Employers Union GovernmentTier-long term Business strategies political strategies Macro economic Strategy HR strategies organizing strategies social policies-policy Making

-Collective- Personnel Policies Collective bargaining Labour lawBargaining Negotiation Strategies Strategies & administration-PersonnelPolicy

-Work place Supervisory Style Contract Labour Standard& individual W.P.M. W.P.M. Individual RightsRelationship

KKM MODEL

• Labour market•Work force •Characteristics & Values• Product market•Technology•Public policies

• Strategic Activities• Collective Bargaining• Personnel functions• Work place Activities

• Employers• Workers

• Labour Unions• Society

Externalenvironment

Valuesstrategies

PerformanceOutcomes

INSTITUTIONAL STRUCTUREOF FIRM LEVEL IR

History and current structures

Significance of KKM Model It recognizes the interrelationship among activities at different levels of the system.

It considers the effects of various strategic decisions taken at different levels.

outcome at different levels is specified.

The short-term and long-term outcomes have been covered.

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