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Industrial Relations

Industrial Relations. IR. IR is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute. 2. Approaches To IR. 3. Parties To IR. 4. Parties To IR ( Contd. ).

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Industrial Relations

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  1. Industrial Relations

  2. IR • IR is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute 2

  3. Approaches To IR 3

  4. Parties To IR 4

  5. Parties To IR (Contd.) Source: National Sample Survey Organisation and Directorate General of Employment and Training, Ministry of Labour, Government of India Number of Employees Source: Government of India, 2001 Sector-wise Share of Employment • Employees • Commitment to Industry • Protective Legislation • Status of the Worker • Employment Pattern 5

  6. Parties To IR (Contd.) • Trade Unions • Unions have broad objectives which are: • bargaining advantage • To secure improved terms and conditions of employment • To obtain improved status for the worker in his or her work • To increase the extent to which unions can exercise democratic control over decisions 6

  7. Parties To IR (Contd.) • Employers • Employers too, are directly involved in any dispute between them and the employees • The management is known to adopt dubious means to forego a strike, call off a strike, or tone down union demands • In general, managers tend to see employee relations in terms of the following activities: • Creating and maintaining employee motivation • Obtaining commitment from the workforce • Establishing mutually beneficial channels of communication throughout the organisation • Achieving high levels of efficiency • Negotiating terms and conditions of employment with employee representatives • Sharing decision making with employees • Engaging structure with trade unions 7

  8. Parties To IR (Contd.) • Employers’ Associations • The major objectives of employers’ associations include: • Representing employers in collective bargaining. • Developing machinery for the avoidance of disputes • Providing information on employee relations and to give advice 8

  9. Parties To IR (Contd.) • Judiciary and Employee Relations • The authority of the courts to settle legal disputes 9

  10. Parties To IR (Contd.) • HR Function • It is the HR professional who is accountable for industrial harmony • It is a paradox that when things are going good, credit is not given to the HR team but fingers are pointed out at them in times of crises • An HR professional needs to play the role of a change agent, an administration expert. • HR team like its counterparts in finance, operations or marketing is equally concerned about the performance of the organisation 10

  11. Parties To IR (Contd.) • ILO and NLC • ILO’s standards with regard to industrial relations include: • Right of Association (Agriculture)(1921) • Freedom of Association and Protection of the Right to Organise (1948) • Right to Organise and Collective Bargaining (1949) • Collective Bargaining (1981) 11

  12. IR Strategy • Since employer-employee relations are usually presumed to be satisfactory until they get out of hand, managers, rarely, feel the need to act before the trouble breaks out • But the reactive strategy cannot continue for long • Where organisations have proactive strategies, the goal should be to ensure that corporate objectives can be achieved by gaining the maximum amount of co-operation from employees and by minimising the amount of industrial unrest 12

  13. IR Strategy (Contd.) • Factors Affecting Employee Relations Strategy • Internal factors: • The attitudes of management to employees and unions • The attitudes of employees to management • The attitudes of employees to unions • The inevitability of the differences of opinion between management and unions • The extent to which the management can or wants to exercise absolute authority to enforce decisions affecting the interests of employees 13

  14. IR Strategy (Contd.) • Factors Affecting Employee Relations Strategy • External factors: • The militancy of the unions—nationally or locally • The effectiveness of the union and its officials • The authority and effectiveness of the employers’ association. • The extent to which bargaining is carried out • The effectiveness of any national or local procedure agreements • The employment and pay situation—nationally and locally • The legal framework within which IR exists 14

  15. IR Strategy (Contd.) • IR Decisions • A proactive IR strategy programme must cover the following decisions: • Communication • Relationships • Competence • Discipline and Conflict 15

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