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IR can be defined as the relationship between

management & union or b/w representatives of
employees & representatives of employees. It includes
all the aspects of employment relations.

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˜ |he existence of strong, well-organised, democratic &
responsible | s & associations of employers.

˜ |he spirit of collective bargaining & willingness to take

recourse to voluntary arbitration.

˜ Welfare work provided by the state, | s & employees create,

maintain & improve labour-management relations & thereby
contribute to industrial peace.

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˜ machinery should be set up for the prevention & settlement of

industrial disputes
Developing various legislative & administrative
enactments like |rade nions Act, Industrial Disputes Act,
Industrial Employment Act, Works Committees & Joint
management Councils, Industrial |ribunals, National tribunals
etc.

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˜ |he Govts has powers to refer disputes to adjudication when
the situation tends to get out of hand & industry is faced with
economic collapse due to continued stoppage of production on
account of long strikes/lockouts.

˜ |he Govt enjoys the power to maintain status quo

˜ .|he provision of bipartite & tripartite forums for the

settlement of disputes

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Establishment of Shop Councils & Joint management
Councils at the floor & plant level to improve the working &
living conditions of employee, to improve productivity,
encourage suggestions from employees, to assist in the
administration of law & agreements & create a sense of
participation in Dm among the employees.

Recognition of Human rights in the Industry.

Increase in the labour productivity

Availability of proper work environment

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|o safeguard the interest of labor and management by
securing the highest level of mutual understanding and
good-will among all those sections in the industry which
participate in the process of production.

|o avoid industrial conflict or strife and develop

harmonious relations, which are an essential factor in the
productivity of workers and the industrial progress of a
country.

|o raise productivity to a higher level in an era of full

employment by lessening the tendency to high turnover
and frequent absenteeism

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|o establish and promote the growth of an industrial
democracy based on labor partnership in the sharing of profits
and of managerial decisions

|o eliminate or minimize the number of strikes, lockouts and

gheraos by providing reasonable wages, improved living and
working conditions, said fringe benefits.

|o improve the economic conditions of workers

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 State policy, labour laws, collective
bargaining agreements

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type of ownership, nature & composition

of workforce, the source of labour supply, labour market
relative status, disparity of wages between groups etc.

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 Social groups, social values, social status etc.

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 Work methods, type of technology
used, rate of technology change, R&D activities

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 wners¶ attitude, perception of

workforce, workers¶ attitude towards work, their motivation,
interest, dissatisfaction & boredom resulting from man ±
machine interface

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 System of government, attitude of

government, political philosophy etc.

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 Style of management
prevailing in the enterprise, organizational climate, extent of
competition, adaptability to change & various HRm policies.

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 Global conflicts, economic & trading

policies of power blocks. International trade agreements &
relations, IL etc.

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sychological Approach to Industrial Relations

2 Sociological Approach to IR

3 Human relations Approach to IR

4 Socio-Ethical Approach to IR

5 Gandhian Approach to IR

6 System Approach to IR
7

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mason Harie ± a psychologist studied the behavior of two

different groups namely ³ nion Leaders¶ & the
³Executives´
For the test a photograph of an ordinary middle-aged person
was served as input, which both the groups were expected
to rate.
nion Leaders referred the person in the photograph as
´manager´
But the group of executives saw ³ nion Leader´ in the
photograph

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˜ |he general impression about a person is radically different

when he is seen as a representative of management from that
of the person as a representative of labour

˜ |he management & labour see each other as less dependable

˜ |he mgt & labour see each other as deficient in thinking

regarding emotional characteristics & inter-personal relations.

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|he industry is made up of various individuals & groups with

different personalities, educational background, family,
emotions, likes & dislikes, interests& many other personal
factors.

|he differences in individual attitudes & behavioural creates

problems of conflicts & competition among the members of the
industrial society.

In the process of change, IRs are becoming more complex that

would further complicate with the passage of time.

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|he problems of IRs can be only managed by deciphering &
managing the dynamics of human behaviour both at individual
& group levels.
Style of Leadership followed by the manager will have an impact
on IR
Another important factor in all conflicts is dissatisfied human
wants.
˜ Basic Needs

˜ Safety needs

˜ Social needs

˜ Egoistic/ Esteem needs

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 |he manager on his part has to develop a greater insight &
effectiveness in his work.

It has been rightly said that ´|he industrial progress of the future
will depend upon how far industry is willing to go in for
establishing a community of mutual responsibility between the
highest paid executive & lowest paid production worker´.

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In India, |he National Commission on Labour studied the
sociological aspect of labour-management relations.

˜ |his group observed that the labour-management relations exists

within social, cultural & political structure of the society.

˜ |hey therefore need to be examined in relation to the overall goals

namely democratic, socialism & economic growth.

˜ |he study group observed that ³ |he goal of labour-management

relations may be stated as maximum productivity, leading to rapid
economic development, adequate understanding among
employers, workers & govt of each other's role in industry &
willingness among parties to co-operate as partners in the
industrial system´

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˜ An important aspect of labour relations in industry is the extent to
which labour & management accept the way of life & value
system of modern technology. |he Director of IRs should develop
a code of ethics for his company & a ³management philosophy´
for IRs in general & for labour relations in particular which ³will
meet the test of being firm but fair, tough but tender, & hard but
human´

˜ A better appreciation of management problems by labour can lead

to acceptance of management¶s proposed solutions.

˜ mutual understanding between workers when they belong to same

culture, area, state or region & differences in opinion &
misunderstanding when they are recruited from different cultural
areas.

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|he Group suggested that the govt should limit in its intervention the
labour-management negotiations in public sector enterprises by
laying down the broad principles within which the management can
negotiate with the labour force on its own.
For this purpose, the following guidelines have been suggested
in respect with:
|he extent to which the capacity to pay should be subordinated to the
payment of wages
|he extent to which the retained earnings for ploughing back in to
business can be sacrificed
|he extent to which the dividends can be lowered to meet the wage
demands of labour
|he extent to which such extra costs can be passed on to the
consumer by way of increased prices of products.

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³|he incentive earnings should result only from increased

productivity´

³|here is a need for framing uniform Statutory Standing rders

for all Central Government ndertakings´

It also suggested that the standard rules governing the conduct &
discipline of employees in public sector undertakings be
framed.

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 .  Giri laid stress on collective bargaining & mutual
negotiations between employers & employees for the
settlement of disputes.
His emphasis was on ³ oluntary efforts of the management &
the | s to wind up their differences through voluntary
arbitration rather than through compulsory arbitration´

He observed that ³ |here should be a bipartite machinery in

every industry & every unit of the industry to settle differences
from time to time with the active encouragement of
government. utside interference should not encroach upon
industrial peace´

|his approach to labour problems encourage s mutual settlement

of disputes, collective bargaining & voluntary arbitration &
not compulsory adjudication.

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Ganhiji¶s views based on
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ut of these principles evolved the concepts of non co-operation

& trusteeship on which his philosophy of industrial relations
rests.

|his philosophy presumes that the peaceful co-existence of

capital & labour, which calls for the resolution of conflict by
non-violent, non-cooperation(i.e, Satyagraha which actually
amounts to peaceful strikes

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rinciple of trusteeship held that the present capitalist order
must be transferred to egalitarian one.

It does not recognize the right to property except permitted by

society for its own welfare.

|he trusteeship theory implies that there is no room for conflict

of interests between the capitalist & the labourers.

|hough wealth belong to its owners, morally it belongs to

society.

If capitalists fail to pay minimum living wages to workers,

workers should appeal to the employer¶s conscience.

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Gandhiji advocated that for resolving disputes following rules to
be observed

|he workers should seek redressal of reasonable demands only

through collective action
If a strike has to be organised, the | s should seek by ballot
authority from all workers to do so, remain peaceful & use non
violent methods
|he workers should avoid strikes as far as possible in industries of
essential services
|he workers should avoid formation of unions in philanthropic
organizations
|he strikes should be resorted to only as a last resort
As far as possible, workers should take recourse to voluntary
arbitration

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managers & their representatives
Workers & their representatives
Specialized govt agencies(Specialised agencies created by the first
two actors
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|he technological characteristics of the workplace & the work
community
|he product mkt or budgetary constraints that impinge on the
actors
|he locus & distribution of power in the large society

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It is a set of ideas & beliefs commonly held by the
actors in that helps to bind or to integrate the system
together as an entity.

|he ideology of an IR system is a body of common

ideas that defines the role & place of each actor & the
ideas that each actor holds towards the place & the
functions of the others in the system. |he ideology of
a stable system involves a compatibility among these
views.

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|hese consists procedures for establishing rules, &
procedures deciding their application etc.
|hese may be expressed in a variety of forms-

˜ |he regulation & policies of the mgt hierarchy

˜ |he laws of any worker hierarchy
˜ |he regulations, decrees, decisions, awards, or orders
of govt agencies
˜ |he rules & decisions of specialised agencies created
by the mgt & worker hierarchies, collective bargaining
agreements & the customs & traditions of the
workplace & work community.
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˜ nable to test theory

˜minimizes other environmental impacts

˜|he actors in the IR is not only mgt, workers &

govts. Environmental concerns, consumers & the
community have a critical role in IR.

˜ iews managers as giving orders and workers

following those orders

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$Attitude- Get off if you do not like it

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$Attitude- We sail together, Do not rock the boat

ü  ‰
$Attitude- It is our common enterprise. Let us

combine our efforts to better it

ü

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$Attitude- With a sense of ownership & pride, the

purpose is to let employees wholeheartedly to contribute to the
improvement of the enterprise.

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˜ nitary

˜
luralist

˜ Radical /marxist
erspective

˜ |rusteeship

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˜ |here is only one source of authority- management. |hey own
& therefore they control

˜ |he employment relationship is grounded in mutual

cooperation and a harmony of interest between employers and
employees

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˜ For nitarists, employers are law unto themselves. Employers
perceive themselves as providers of job, income & social
mobility. |hey believe that conflict in unnecessary.

˜ It assumes that organisation is composed of a group of people

under a single/unified loyalty structure. It is the prerogative,
right & responsibility of the mgt to make decisions regarding
how an enterprise is to be run & how employees are to be
dealt with.

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˜ Fails to recognise the divergent interests that exist between
management and labour

˜ Narrow view of the nature of the employment relationship and

of industrial conflict

˜ Issues of conflict, such as income distribution, the status of

labour, and power and control in decision-making, are
neglected

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|he organisation is composed of individuals who make up
distinct groups, each with its own interests, objectives &
leadership. |his gives rise to a complex of tensions &
competing claims which have to be ³managed´ in the interest
of maintaining viable collaborative structure.

It sees conflicts between mgt & employees as rational &

inevitable.

Common interests & mutual dependence are perceived as

necessary for the survival of the whole of which they are parts.

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Normative differences do not come in the way of negotiations
concerning rules governing various aspects of employment
relationship.

|he purpose of such interactions is to secure a balance of power

between mgt & employees.

Employees can organise themselves into unions to collectively

safeguard their interests.

|he belief among pluralists is that Ô
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Radical/marxist perspective is based on the notion that the
production system is privately owned & is motivated by
profits.

Control over production is exercised by managers who are

agents of owners

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˜ |he viewpoint that regards industrial conflict as an aspect of
class conflict in wider society

˜ nions are an outcome of the power imbalance inherent in the

employment relationship

˜ |he State actively seeks to protect the interests of capital

˜ Social change is required to end the disparity between those

who own capital & those who supply labour.

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|he Radical perspective seeks to alter the existing system of
economic organisation which causes social, economical &
political conflicts.

In the radical approach, ?
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Conflict cannot be controlled as long as capitalism prevails.

marxists sees a role of | s in protesting against exploitation.

|he radical approach favours transformation of | s in to

revolutionary organisations rather than their becoming
lieutenants of capital in the intensifying exploitation of
worke
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˜ Criticised for being overly focused on conflict between capital
and labour

˜ Neglects any dynamics of trust, accommodation and

cooperation in the employment relationship

˜ nderestimates the independence of the State from capital

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mahatma Gandhi proposed the trusteeship approach.

|he
rinciple of trusteeship expresses the inherent responsibility of a

business enterprise to its customers, workers, shareholders & the
community & the mutual responsibilities of those to one another.

|he concept of trusteeship implies stewardship without ownership.

Gandhi believed that the people should keep the minimum of wealth
for themselves to be able to lead a life that millions lead & give up
the rest to be held for the greatest good of all.

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Conflicts may arise due to-
˜ Wage-work bargain
˜ managerial system of work governance
˜ Fundamental divisions & differing values in the society

|he interests of group can be negotiated through collective bargaining

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Equity & Fairness

ower & Authority

Individualism & Collectivism

Integrity, trust & |ransparency

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Equity & fairness

ower & Authority

˜
ower to reward/punish
˜
ower to coerce others
˜
osition power
˜ Reference power due to personal attributes
˜ Expert power
˜ Association power

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Individualism & Collectivism

Integrity, |rust & |ransparency

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|he structure of the economy & labour market
Constitutional provisions, labour framework & labour
standards(International, National, Statutory
|he structure of | s & employers organizations & their
linkages, attitudes & approaches
|he nature & extent of government intervention

olicies on IRs at International, national, industry, firm &
workplace levels
Labour mkt policies & labour mkt institutions, labour law
administration & dispute relation mechanisms etc
Collective bargaining & workers¶ participation

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Harmonizes the interests of ecologically sustainable economic
growth with social progress & justice

Generates productive employment

Contributes to improvement in the productivity & quality of

goods/services at economical prices

Improves the quality of life of workers & their families.

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|op management Support

Developing Sound HRm & IR policies

Development of Effective HRm & IR
ractices

rovision of adequate supervisory training

Follow-up of results

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Sharing Information

Consulting with each other on a regular basis

Brainstorming together

rganising morale boosting safaris to units where labour & mgt

have benefited through cooperation

Creating opportunities for both management & labour to review,

learn, & put positive learning in to practice.

Bridging the gap between precept & practice

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All the above features can become a part of the IR environment
of a Co if

|he mgt shifts the direction & control towards consensus &
commitment

|he mgt strives to develop a shared vision & common

ownership of ideas in a spirit of µsomething for everyone¶

|he mgt aims for a consensus on corporate HR/IR strategy

|he mgt promotes organisational learning across the co¶s

operating units on how to address the agenda.

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Clarify & reason with other party

rovide for say & share for all employees

Focus on fairness

Empower people

Be transparent because trust begets trust

Give credit

Learn to manage the ego

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˜ Accept the nexus between the financial success of the enterprise & livelihood
& well-being of the people in the orgn; improvement in wages & welfare can
come only from improved business results

˜ Develop long term perspective

˜ nderstand the link b/w relationships in assessing the behaviour &

performance of a firm

˜ Realise the importance of knowledge, skills, attitudes, lifelong employability

can come through proactively addressing, jointly with mgt, the issues relating
to human obsolescence

˜ nderstand & assess the consequences of working together verses working at

cross purposes.

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 ± nly one side will get what it wants


 - Both side spends more energy & one side will have
marginal gains


  -ne party wins & other loses

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 - No one gets what they want



  - Initiator may gain



 - Both parties evolve an option for mutual gains

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Industrial Relations has a very important role in the
modern competitive industrial society.

It is a big challenge to HR/IR manger to formulate

sound IR policies & maintain a harmonious relation
with the employees to retain a competitive position in
the modern complex industrial society

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|HANK Y

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