INTRODUCTION TO

INDUSTRIAL
RELATION

PRESENTED BY
SHWETA SHETTY
M.SHWETA
MADHU KULKARNI
NUTAN
BACKGROUND OF INDUSTRIAL
RELATIONS
DEFINITION
Industrial relation describes relationships
between managements and employees or
among employees and their organizations that
characterize or grow out of employment.
Or
It is set of functional interdependence involving
historical economic social psychological
demographic technological occupational
political and legal variables.
Industrial relation plays a crucial role in
establishing and maintaining industrial
democracy.
The origin of industrial relations lies in the
employer employee relationships.
In India it is passed through several stages. A
number of factors social, economic, and
political have influenced industrial relation in
India.
In the pre independence days workers were
hired and fired as the principle of demand and
supply governed industrial relations.
The employer was in a commanding position
and the conditions of employment and wages
were very poor.
However even till the end of first world war the
trade union had not emerged.
The people who owns the instruments and
materials of production become their employers
and own the product.
In the beginning of the modern industrial society
the economic system consisted of a large
number of small competitive business and
industrial establishment each employing a
small number of workers.
The relationship between employer and
employees was informal personal and intimate
but the as days go on relationship between
them is no longer intimate and informal.
Formal institutions have grown up to regulate
this relationship.
Some factors have changed the nature of the
employer employees relationship and have
converted this private relationship in to a
relationship of public importance.
After India attained independence one of the
significance step taken in the field of industrial
relations was the enhancement of the Industrial
disputes act 1947.
Another development is setting up of the Indian
labour conference.
The government’s attitude was changed towards
labour and their problems.
Many political and international events affected
the course of industrial relations.
In 1958 code of discipline was introduced.
Standing labour committee was established in
1970.
In the late 1970s and early 1980s industrial
relations India were characterized by violence.
Because ILC failed to meet the objectives.
NAB and SAB are formed
At present at the plant level IR become highly
regulated.
The government of India passed the laws
which governs the industrial relation.
Industrial relation refers to complex
relationship between employer and employees
as they are governed by social and economical
changes.
Now a days employees are aware of labour
laws.
The maintenance of the industrial peace and the smooth
functioning of industrial relations are the basic
requirements of public welfare.
The trade unions and their federations of today as well as
the large business corporations separately command an
aggregate of power. Which can be used both for the
welfare as well as the large for the disruption of society.
The struggle between these two wings of industrial relations
fighting for the sharing of the joint product of labour and
capital.
The result is that the problems of industrial relation such as
strikes and lock outs hiring and firing promotion and
transfer etc.
Approaches to IR

1. Psychological Approach.
2. Sociological Approach.
3. Human Relations Approach.
4. Socio-ethical Approach.
5. Gandhian Approach.
6. System Approach.
 1. Psychological Approach :
Mason Harie studied the influence of individual’s perception.”.

Harie concluded that :

a) The 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.
b) The management and labour see each other as
less appreciately of other’s position than of
oneself.
c) The management and labour see each other as
less dependable.
d) The management and labour see each other as deficient
in thinking regarding emotional
characteristics and inter-personal relations.
2. Sociological Approach:
 It includes various sociological factors like
value system ,customs, norms, symbols,
attitude and perception of both labors and
management .

 The social consequences of industrialization

like organization, social mobility, migration
generates many social evils like family
disintegration, stress and strain, delinquency,
personal and social disorganization do
influence workers efficiency and productivity
that in turn influence industrial relation system
of an industry.
3. Human Relations Approach
If human resources are not properly managed,
the problem of industrial relations surfaces and
can only be managed by deciphering and
managing the dynamics of human behavior both
at the individual and group level.

There are four basic needs namely Physiological,

safety, social and egoistic needs.
So it is necessary for management to
design a suitable motivational strategy.

“The industrial progress of the future will

ultimately depend upon how far industry is
willing to go in for establishing a
community of mutual responsibility
between the highest paid executive and the
lowest paid production worker”.
4. Socio-Ethical Approach

The good industrial relations can only

maintained when both the labour and
management realize, their moral
responsibility in contributing to the said
task through mutual co-operation and
greatest understanding of each others
problems.
 5. Gandhian Approach

Gandhiji’s views on industrial relations are

based on his fundamental principles of truth and
non-violence, and non-possession or aparigraha.

This philosophy presumes peaceful co-existence

of capital and labour, which calls for the
resolution of conflict by non-violent, non-co-
operation (satyagraha), which actually amounts
to peaceful strikes in ordinary parlance.
 6. System Approach (John Dunlop)
It focuses on participants in the process,
environmental forces and the output.
It studies inter-relations among different
facets of industrial relations system.
Environmental Forces Participants in the System Outputs
1.Market or Budgetary Restraints Rules of the
Union-Management Workplace
2.Technology.
Government
3.Disribution of power and society.
Forms of IR

The interaction among the stake holders in IR is

characterized by a certain “balance of power”.

In highly regulated IR environment, the state is likely

to be the dominant power.

In a market- driven economy, employers tend to

dominate as a result of the right to “ hire and fire” in
response to market demand.

In a socialist economy, trade unions tend to have a

dominant role.
The management of IR within the framework of
culture of dominance can take 3 forms:

Managing by contending(DEALING WITH

DIFFICULTIES):

The dominant stakeholder holds the reins and

steering the choice making processes and choices.
Pressure tactics coupled with employment of
leverages like litigation and direct action go hand-
in-hand with the reaction of the dominated to
protect threatened interest.
• Managing by conceding(GIVE UP
ADVANTAGE OR RIGHT):

The dominant stake holder manages

interactions with other less dominant or
dominated stake holders by making
concessions on an ad hoc, situational basis.
Managing by colluding(COOPERATE
SECRETELY FOR DIHONEST):
The dominant stake holder strikes up equations
with individual stake holder representatives or with
stake holders’ associations, so that mechanism of
choice- making as well as choices are influenced to
favor the dominant stake holder.

This collusive character of the interaction leads to

the compromise of the interests of the less dominant
stake holder groups.
 THEORIES OF IRs
• Dunlop’s System Theory(1958)

• Pluralist Theory of Flanders(1970)

• Structural Contradiction Theory of Hyman(1971)

• Human Relations Theory by Keith Davis

• Trusteeship Theory of Gandhiji

SYSTEM THEORY
John Dunlop developed system theory in 1958.
The central feature of this theory is that the IR
system overlaps with the other system in the total
social & human resource sys.
Dunlop suggested that three sets of interests have to
be taken into account while developing an IR sys.
i. workers & unions
ii. Employers & their organisations
iii. Society & govt
This attempts to provide tools of analysis for
interpretation & understanding of the widest
possible range of IR facts & activities.
The sys theory is divided into three
interrelated components,
i. actors
ii. Certain contexts & ideology
iii. Body of rules to govern the actors.
Criticism
• Non dynamic model
• Concentrates on structure, ignoring process
• Lack of focus on nature &development of conflict
• Problematic when actors do not share a common
ideology
• It favors analytical approach based on comparison
rather than prob solving app based on descriptions
• It fails to describe how inputs are converted into
outputs
PLURALISTS THEORY
• This theory given by Flanders is also known as
Oxford model.
• According to him conflicts are inherent in IR
sys & hence collective bargaining is central to
IR
• R=f(b) or R=f(c)
R=rules governing IR
b=collective bargaining
c=conflict resolved through c.b
Criticism
Fails to provide comprehensive framework
for analysing IR problems.
Over emphasises on political process of c.b
Variables such as technology.market,status
of parties are not given importance.
HUMAN RELATIONS THEORY
• According Keith Davis IR are
“the integration of people into a work-situation that
motivates them to work productively.co-operatively
&with economic ,psychological &social
satisfaction.”
Goals of IR,
i. to get people to produce
ii. to co-operate through mutuality of interest
iii. to gain satisfaction from their relationships
TRUSTEESHIP THEORY
• Gandhiji had immense faith in goodness of man.
• He believed that many of evils of the modern world
have been brought about by wrong sys, not by
wrong individuals.
• He laid down certain conditions for successful
strikes,
i. the cause of strike must be just & there should be
no strike without a grievance
ii. There should be no violence
iii. Non-strikers should never be molested.
…….THANK
YOU……