irl - unit 1
TRANSCRIPT
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http://www.google.co.in/imgres?q=industrial+relations&start=89&um=1&hl=en&sa=N&biw=1024&bih=506&tbm=isch&tbnid=4btW7AVqZ4zUsM:&imgrefurl=http://raj-projects.blogspot.com/2009/05/importance-of-industrial-relations.html&docid=wTCqg2mzhneFdM&imgurl=http://4.bp.blogspot.com/_1_BL7b5qv1w/ShY-B7qwLxI/AAAAAAAAABM/UrSfcERuv1A/s320/b74.jpg&w=127&h=109&ei=76X_T4roEsf5rAfSlNmGBg&zoom=1&iact=hc&vpx=821&vpy=52&dur=769&hovh=87&hovw=101&tx=80&ty=51&sig=116716921774274520040&page=7&tbnh=87&tbnw=101&ndsp=18&ved=1t:429,r:5,s:89,i:21 -
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Industrial relations has become one of the most delicate and
complex problems of modern industrial society.
Industrial progress is impossible without cooperation of labors
and harmonious relationships.
Therefore, it is in the interest of all to create and maintain good
relations between employees (labor) and employers
(management).
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The term Industrial Relations comprises oftwo terms: Industry and Relations.
Industry refers to any productive activity inwhich an individual (or a group of individuals)is (are) engaged.
By relations we mean the relationships thatexist within the industry between theemployer and his workmen.
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The term industrial relations explains the
which stem directly or indirectly fromunion-employer relationship.
OLD ASPECT: industrial relations covers all aspects of the
employment relationship, including human resource management,
employee relations, and union-management (or labour) relations.
NEW ASPECT: industrial relations pertains to the study and
practice of collective bargaining, trade unionism, and labour-
management relations, while human resource management is a
separate, largely distinct field that deals with non union employment
relationships and the personnel practices and policies of employers.
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The relationships which arise at and out of
the workplace generally include
the relationships between individual workers,
the relationships between workers and their
employer, the relationships between employers,
the relationships employers and workers have withthe organizations formed to promote theirrespective interests, and
the relations between those organizations, at alllevels.
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Industrial Disputes Act 1947 defines an industry as any systematic
activity carried on by co-operation between an employer and his
workmen for the production, supply or distribution of goods or
services with a view to satisfy human wants or wishes whether or not
any capital has been invested for the purpose of carrying on such
activity; or such activity is carried on with a motive to make any gain
or profit.
Thus, an industry is a whole gamut of activities that are carried on by
an employer with the help of his employees and labors for production
and distribution of goods to earn profits.
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An employer can be defined from different
perspectives as:-
a person or business that pays a wage orfixed payment to other person(s) in exchangefor the services of such persons.
a person who directly engages aworker/employee in employment.
any person who employs, whether directly orthrough another person or agency, one or
more employees in any scheduledemployment in respect of which minimumrates of wages have been fixed.
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Employee is a person who is hired by anotherperson or business for a wage or fixed paymentin exchange for personal services and who doesnot provide the services as part of anindependent business.
An employee is any individual employed by anemployer.
A person who works for a public or private
employer and receives remuneration in wages orsalary by his employer while working on acommission basis, piece-rates or time rate.
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The state of being employed or having a job.
The market in which workers compete for
jobs and employers compete for workers. Itacts as the external source from whichorganizations attract employees.
These markets occur because different
conditions characterize different geographicalareas, industries, occupations, andprofessions at any given time.
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Industrial relations encompasses a set ofphenomena, both inside and outside theworkplace, concerned with determining andregulating employment relationship
It refers to the Relationship betweenmanagement and employees or among
employees and theirorganization that characterize and grow outof employment.
Dale Yoder
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IR involve attempts to have workable
solutions between conflicting objectives and
values, between incentive and economic
security, between discipline and industrial
democracy, between authority and freedom
and between bargaining and cooperation.
R A Lester
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http://www.google.co.in/imgres?q=industrial+relations&um=1&hl=en&sa=N&biw=1024&bih=506&tbm=isch&tbnid=LhQocGwt0pK52M:&imgrefurl=http://train-srv.manipalu.com/wpress/?p=135969&docid=aqPNqVJgi-h_gM&imgurl=http://train-srv.manipalu.com/wpress/wp-content/uploads/2010/10/clip-image00284.jpg&w=379&h=334&ei=N6T_T4SSCtHQrQfH9PWOBg&zoom=1&iact=hc&vpx=742&vpy=166&dur=5632&hovh=211&hovw=239&tx=103&ty=93&sig=116716921774274520040&page=1&tbnh=128&tbnw=143&start=0&ndsp=10&ved=1t:429,r:4,s:0,i:112 -
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IR arise out ofemployeremployee relations
IR is a web of rules: formed by the interaction of Govt, industry & labor
IR is multi dimensional: influenced by complex set of institutional.economic & technological factors
IR is dynamic and changing: keep pace with employee expectations,trade unions, employer associations and other economic and socialinstitutions of society
IR is characterized by forces of conflict and compromise. Individualdifferences and disagreements resolved through constructive means.
Govt influences and shapes IR: with its laws, rules, agreementsthrough executive and judicial machinery
Scope of IR is very wide as it covers grievances, disciplinary measuresethics, standing orders, collective bargaining, participatory schemesand dispute settlement mechanism etc
Interactive and consultative in nature: in resolvingconflict,controversies and disputes between labor and management.
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relationships between management and employees (andtheir representatives) on the one hand, and betweenthem and the State on the other,
are more harmonious and cooperative than conflictualand
creates an environment conducive to economic efficiencyand the motivation, productivity and development of the
employee and
generates employee loyalty and mutual trust.
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are directly involved in industrial
relations:
Employers possess certain rights vis--vislabors. They have the right to hire and fire them.
Management can also affect workers interests by
exercising their right to relocate, close or merge the
factory or to introduce technological changes.
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Workers seek to improve the terms
and conditions of their employment. They
exchange views with management and voice their
grievances. They also want to share decision
making powers of management. Workers
generally unite to form unions against the
management and get support from these unions.
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The central and state government
influences and regulates industrial relations
through laws, rules, agreements, awards of courtad the like. It also includes third parties and
labour and tribunal courts.
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Uninterrupted production Reduction in Industrial Disputes
High morale
Mental Revolution Reduced Wastage
Thus, it is evident that good industrialrelations is the basis of higher production
with minimum cost and higher profits. It alsoresults in increased efficiency of workers.
http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/ -
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industrial relations are the sum of institutionalprocesses that establish and administer the rulesregulating workplace relations
industrial relations are the sum of socialpsychological interactions between individuals
industrial relations are the sum of institutions,interactions and processes that are a product ofwider social and economic influences, inparticular the class divisions of contemporarycapitalism
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contracts of employment (involving trade
unions, worker collectives, labour courts and
government agencies), as well as management
of conflict arising out of the personal
interactions of individuals in the workplace, are
part of labour management functions ( i.e.
recruitment, selection, training, development,
performance management, and so on)
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(or ):
contracts of employment (involving trade unions,
worker collectives, labour courts and government
agencies), as well as the management of conflict
arising out of the personal interactions of
individuals in the workplace, are part of workplace
relations, together with the normal functions of
Human Resource Management.
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To enhance economic status of worker
To avoid industrial conflicts and their consequences
To extend and maintain industrial democracy
To provide an opportunity to the worker to have a say in the
management decision making
To regulate production by minimizing conflicts
To provide forum to the workers to solve their problems
through mutual negotiations and consultations with
management
To encourage and develop trade union in order to develop
workers collective strength
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Management Union relationship
Employer Employee relationship
Relationship amongst various groups of employees
Effect of extraneous factors like state, socio-political-
economic factors on workplace relationships
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Co-operation
Conflict
Authoritarian
Paternalism
Evolution
Revolution
Input Conversion Output
Conflict(differences)
Institutionsand
processes
Regulation(rules)
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In unitarism, the organization is perceived as anintegrated and harmonious system, viewed as one
happy family.
A core assumption of unitary approach is thatmanagement and staff, and all members of theorganization share the same objectives, interestsand purposes; thus working together, hand-in-hand, towards the shared mutual goals.
Furthermore, unitarism has a paternalistic
approach where it demands loyalty of allemployees. Trade unions are deemed asunnecessary and conflict is perceived as disruptive.
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Working practices should be flexible.
If a union is recognized, its role is that of afurther means of communication between groupsof staff and the company.
The emphasis is on good relationships andsound terms and conditions of employment.
Employee participation in workplace decisions isenabled.
Employees should feel that the skills and
expertise of managers supports their endeavors.
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Staffing policies should try to unify effort, inspire and motivate
employees.
The organization's wider objectives should be properlycommunicated and discussed with staff.
Reward systems should be so designed as to foster to secureloyalty and commitment.
Staff-management conflicts - from the perspective of the unitaryframework - are seen as arising from lack of information,
inadequate presentation of management's policies.
The personal objectives of every individual employed in thebusiness should be discussed with them and integrated with theorganizations needs.
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In pluralism the organization is perceived as being made up of
powerful and divergent sub-groups - management and tradeunions.
Trade unions are deemed as legitimate representatives ofemployees.
Conflict is dealt by collective bargaining.
Realistic managers should accept conflict to occur. There is a greater propensity for conflict rather than harmony.
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The firm should have industrial relations and personnel specialists who
advise managers and provide specialist services in respect of staffing
and matters relating to union consultation and negotiation.
Independent external arbitrators should be used to assist in the
resolution of disputes.
Union recognition should be encouraged and union representatives
given scope to carry out their representative duties
Comprehensive collective agreements should be negotiated with unions
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Marxists like pluralists also regard conflict as inevitable but see it asa by product of capitalistic society where as pluralist believe that the
conflict is inevitable in all organizations For Marxists IR has wider meaning. For them conflict arises not
because of rift between management and workers but because ofthe division in the society between those who own resources andthose who have only labor to offer.
Marxist approach thus focuses on the type of society in which anorganization functions.
Industrial conflict is thus equated with political and social unrest
Trade Unions are seen both as labor reaction to exploitation bycapitalists, as-well-as a weapon to bring about a revolutionarysocial change. Wage related disputes as secondary
For them all strikes are political and they regard state intervention (via legislations and creation of Industrial Tribunals ) as supportingmanagements interests, rather than ensuring a balance between thecompeting groups.
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EMPLOYEES
EMPLOYEEASSOCIATIONS
GOVERNMENT
EMPLOYERS
EMPLOYERASSOCIATION
COURTS&
TRIBUNALS
EMPLOYER-EMPLOYEERELATIONS
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WORKERS and their ORGANIZATIONS( Trade Unions or Associations )
Trade unions have a protecting role of safeguarding workersinterests,
Regulating function of ensuring implementation of statutes / Acts
Ensuring non-violation of workers rights
Trade Union Act provides Status and Authority for the power vestedin them
This power is used for negotiating Wage Interests, better benefits
and service conditions, concessions, more amenities and welfareschemes
Structure of Workers organization or Trade unions differs fromcountry to country
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An organization is represented through officials designated inthe organization structure for coordination of activities
relating to:
Administering employee benefits
Regulating terms and condition of employment
Providing welfare and social security benefits Coordination is done through graded hierarchical and formal
communication channels of orders and directives
Style and manner in which employer organizations get workand regulate the terms and conditions of employment affects
the industrial relations of the unit.
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Govt or state machinery regulates the relationship betweenworkers organizations and employers organizations.
It does it through :
- Statutes and legislations,- The judiciary- labor courts industrial tribunals
- An executive machinery- that lays down rules, proceduresand
gives awards and monitors them
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Dunlops model
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EXTERNAL FACTORS:
Militancy of unions- nationally or locally
Authority and effectiveness of the employers family
The extend to which bargaining is carried out at national,
local or plant level The effectiveness of any national or local procedure
agreements that may exist
Employment situation nationally or locally
Legal framework within which IR exists
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According to psychologists, the problems of IR areattributable to the differences in the perceptions of laborand management. Both parties tend to look at factorsinfluencing their relations i.e. wages, benefits, workingconditions etc. in different ways.
Dissatisfaction with pay, benefits, services, conditions of
work compel workers to turn aggressive and resort tostrike, gheraos etc. Employers adopt rigid postures and draw the shutters
down when they find regulatory framework to berestrictive, workers to be highly demanding and marketforces to be unmanageable.
Apart from economic issues, motives such as the need togain prestige, power, status, recognition also compelpeople to go in different directions, sacrificing the broaderorganizational interests