Paper 92

APJEM
Arth Prabhand: A Journal of Economics and Management

Vol.2 Issue 5 May 2013, ISSN 2278-0629
INDUSTRIAL RELATION A WAY TO IMPROVE PRODUCTIVITY

PALLAVI KUMARI*
* Lecturer,
Biju Patnaik Institute of Information Technology & Management Studies,
BPUT, India.
ABSTRACT
The purpose of this research is to investigate the contribution of industrial relation towards
productivity. The paper identifies the determinants of productivity gains in an industry and the
impact of human inputs on productivity. The outcomes of research indicate a strong relationship
between the both. As a result, first of all, I review the relevant literature about the relation
between productivity and labour. Then, by proposing a empirical model, this paper illustrates
that productivity is largely dependent on the morale of the employee. Moreover, this paper states
that such integration leads to firms superior performance. This paper suggests professional
approach to various dimensions of industrial relation in the light of various constraints the
enterprise encounter. Finally suggestions are made which provide further insight, for managers
of organizations on IR practices contributing towards increased productivity. This study has also
become important because the industry has changed drastically due to globalization, privatization
and liberalization.
KEYWORDS: Industrial relation, productivity, organizations, globalization.
_____________________________________________________________________________
Pinnacle Research Journals

http://www.pinnaclejournals.com
24
INTRODUCTION
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). It has been said so far that
given the technological and material inputs and a given capacity of the worker, the will to work
materially affects the productivity of the workers and, therefore, of the enterprise. Apart from the
other influences on the morale of the workers, the quality of industrial relations has a direct
bearing on the workers will to work.When it is said that the quality of industrial relations has an
important bearing on productivity, it is to be realized that it is not so much the role of strikes and
lock outs to be emphasized for linking the importance of industrial relations to productivity.
Apart from the fact of the open stoppages of production or even the announced go slow or
work to rule practices which directly reduce production even under normal conditions when the
work processes are supposed to function smoothly, the quality of industrial relations continues to
influence the worker's behaviour and his attitude to work.
APJEM
RESEARCH OBJECTIVES AND METHODOLOGY

To study how far the industrial relation is related and contributes towards productivity.
To find the impact of human inputs on productivity.
To identify the determinants of productivity gains in an industry.
To proposed an empirical formula for establishing a relationship between labour relation
and production function.
Based on the study to make recommendation on improving industrial relation.
The present study is based on secondary data mainly collected from website, journals, magazine
articles and reviews.
STATEMENT OF THE PROBLEM
Organisations where industrial relations are strained, the organisations have to face lot of
problems. The atmosphere of such organisations is always surcharged with industrial unrest
leading either to strikes or lockouts adversely affecting the productivity. Organisations which
ignore the importance of industrial relations face high cost of production. Adverse effect on
efficiency, low-grade production, negligence in the execution of work, absenteeism among the
workers, high rate of labour turn-over etc. are the evils that result from poor industrial
relations. Lack of cordiality in industrial relations not only adversely affects the interests of the
labourers and employers but also cause harm to different sections of society. They are faced with
lot of difficulties and problems.

25
REVIEW OF LITERATURE
The review of previous studies brings together the results of existing research, shows how the
studies are related and a critical analysis of Industrial relations indicating the impact of it on
productivity. Industrial relations have been argued to contain the attitudes among the
management and workers. One can equally argue that industrial relation is a major factor that
affects directly or indirectly, productivity through such variable as managerial competence,
workers motivation, and institutional backup. According to Englama (2001. Industrial relation
refers to the combination of interactions that take place between the employee and employer in
an organisation. He believed that the fundamental problem in all organisation, whether business,
educational, local or national, was in developing and maintaining a dynamic and harmonious
relationship. To achieve this, group dynamics, policy making by consultation, diffusion of
authority, delegation, vertical and horizontal communication, have to be ushered in. Productivity
is largely dependent on the morale of the employee. If the productivity of the enterprise has to
remain on the higher side, it is compulsory required that morale of its employees is higher.
Contrary to this, if the morale of the employee come down or it is at a lower degree, the
productivity is bound to fell down. In fact, morale and productivity go side by side. Productivity
is directly linked with profitability of the enterprise. With increase in productivity, profitability
increases and with decrease in productivity, profitability decreases. But the ratio of increase or
APJEM
decrease in profitability is not essentially in tune with productivity as profitability is measured on

different parameters.
If we take industrial relation as an important factor affecting productivity, we will see that trade
dispute does not only affect productivity through labor loss alone but when there are incessant
work stoppages, machines and other fixed and variable capitals are not fully utilized it reduces
the level of output and increasing average cost (Humphrey, 1991). According to Yesuffu (2000),
The overtime ban is the refusal of Union members to work over time, in most cases this is meant
to increase the production cost of the firm since the machine will be underutilized. The work-torule, on its own, is when workers follow the rule strictly to the extent that output is affected. This
also serves to increase the production cost.
There are discussions in the literature of the determinants and constraints to raising firm-level
productivity in Sub-Saharan Africa. Various studies using firm-level data that look at the
determinants of productivity in Sub-Sahara Africa reveal the importance of education, new
technology, and skill level of the labour force in raising productivity (Collier and Gunning 1999,
Pack ) In general, the results of these studies are similar to productivity studies in other part of
the world. A study by Biggs, Shar and Srivasta (1995) shows that job training of workers, new
technology and information brought in by foreign firms technical assistance constraints, and
licences arrangement all have significant impact on firm productivity.

26
RATIONALE OF THE STUDY

The analytical study of industrial relations is very much important and significant because of the
rapid expansion of the industry or industrialization in India. This study has also become
important because the industry has changed drastically after independence and will further make
rapid changes in the industrial relations due to globalization, privatization and liberalization.
Industrial relations have become a major force for social and economic growth in the country.
The responsibility and accountability on employers and employees is increasing day by day. The
problem of industrial relations is becoming more complex due to downsizing and early
retirement schemes which are having a negative impact on productivity. In order to meet these
challenges there is a need for better industrial relations and such relations can be made possible
only if there is a total re-overhauling of traditional techniques of industrial relations. The study of
industrial relations is becoming important in India because Indian economy has undergone a
transformation from agrarian to industrialize and from industrialized to hi-tech industrialization.
In this scenario manpower management and industrial relations cannot be under estimated.
Though industrial relations influence productivity has far reaching impact on the economy as a
whole.
HUMAN INPUTS AND PRODUCTIVITY
Of the two kinds of inputs, material and human, the human input assumes a crucial role in any
movement for improving productivity. It is a well known fact that the quality of human input is
the determinant of the level of productivity under a particular technological situation. This
quality has two aspects: (a) the capacity to work, i.e., technical efficiency depending upon
APJEM
training, education, physical climate, standard of living, work environment etc. and (b) the will
to work, depending upon motivation and morale.

27
C.J. Hawkins has very aptly remarked: Production functions are in reality imposed by the laws
of humanity and not of physics. People are not molecules, behaving in a constant, consistent,
mechanical fashion, always the same, universally yielding and identical response to a given set
of stimuli. People are a composite of likes, dislikes, emotions, urges, morals, and much more.
They need motivation to give of their best. Their best varies from day to day, from place to place
from factory to factory. No two human inputs are identical. One hundred men under one
manager will produce a different output from the same men under a different manager. Man can
vary the quantity and quality of his output. His output almost never achieves the maximum of
which he is capable; the difference between this and what has been achieved has been called X
in efficiency.
This gap between potentiality and actual performance is the result of diverse sociological and
personal factors. It is self evident that modern industrial workers working for a wage or a salary
have very different motivation from that of a self employed person. The self employed person
who owns his own tools, controls the production process, and provides the raw material, is also
the owner of the final product. If he works hard and gives his best to the production process the
product of his efforts will directly accrue to him. He is the only beneficiary of his efforts and also
a very direct beneficiary. Thus, he does not need any additional stimulus to induce him to put
forth his best. This becomes all the more evident where the producer is also the direct consumer
of his products. His welfare is directly linked to the quality and quantity of his efforts. The
situation completely changes when he turns into a wage or salary earner. In a large organization,
his efforts are merged in the efforts of hundreds of others. The results of his efforts are rarely
known to him. Not only that, the link between his efforts and product of his enterprise becomes
tenuous, but also that, he receives a fixed remuneration not linked to his efforts and productivity.
The relationship between the employer and his employees is a necessitous relationship flowing
from the necessity of the worker for a job and the necessity of the employer for labour.
Therefore, the worker tends to give the least which is just sufficient enough to protect his job and
the employer also seeks to give him the least barely sufficient enough to retain the worker in the
firm. It is the relationship of giving the least on both sides that leads to what has been termed X
inefficiency mentioned earlier. The capacity to work may be there but the will to work is absent.
Chamberlain calls this situation a relationship of conjunction and not of co-operation.
RELATIONSHIP BETWEEN PRODUCTIVITY AND LABOUR
Productivity may not be far from the nascent realization of the primary and centrality of humans
in economic development and growth process of a nation (Anyawu, 2003). Productivity can be
defined as output per unit of input in a production process. Productivity is a matter of concern to
government bodies, private firms, trade unions and other institutions not minding the
disagreements over its conceptualization by different groups and individuals. Hence, discussing
productivity at all levels is common because of the direct relationship between productivity and
the standard of living of a people. In effect, productivity becomes the attainment of the highest
level of performance with the lowest possible expenditure of resources.
APJEM
Productivity is the talk of the day and increase in productivity is looked upon as the key to
prosperity at all levels. It is an index of measuring efficiency. Productivity is the ratio of outputs
to inputs. It refers to the volume of output produced from a given volume of inputs or resources.
If the firm becomes more productive, then it has become more efficient, since productivity is an
efficiency measure. It also refers to the relationship between the result and the means employed,
or, to be more specific, between the product and the factors used for obtaining it. It seeks to
measure the economic soundness of the use of the means. Consequently, productivity can be
considered to be higher if the same product is obtained with more limited means; it will be lower
if the same product is obtained by a large quantity of means .It will be maximum when the
highest output is obtained with the minimum expense of resources; it will be the lowest when the
resources are not used in the most economical manner with the result that the smallest amount of
output requires the maximum expenses of the resources required for the purpose. In this context,
the definition of productivity as given Peter F. Drucker is worth mentioning. He defines
productivity as that balance between all factor of production that will give the largest output
for the smallest effort.
In technical terms, however, productivity is described as a relationship between output and input.
It is , in fact, the ratio of the output of the products to the input of factors required for producing
the products . Symbolically , P=O/I ;where P= Productivity ,O=Output and I=Input .Here, Output
means the quantity or the number of items produced; and input means the various resources
employed to get the production, e.g, land and building ,equipments and machinery ,materials ,
labour etc. Thus, productivity can be measured on all factors of production such as man,
machine, materials, land , etc.
28
A number of factors affect productivity Major among these are the complementary factors of
production as well as technology / innovations, institutional back-up, workers motivation, the
quality of labour, environment etc. These are simply represented in the implicit functions in
equation (1) (Anyawu, 2003).
P = f (L, Lb, K, T, MC, Wm, Ib, E) . (1)

Where P = productivity
L = Land
Lb = Labour
K = Capital
T = Technology / Innovation
Mc = Managerial Competence
Wm = Workers motivation
Ib = Institutional backup
APJEM
E = Environment
It is very common to see emphasis placed on labour productivity in both the public and private
organizations and firms. One justification for this special emphasis on labour productivity is,
perhaps, because labour is a universal key resource (Oyeranti, 2003). Other reasons put forward
to justify the use of labour input for purpose of partial productivity measurement are:
i. labour is regarded as the most important factor of production;
ii. labour is the most easily quantified factor of production;
iii. labour is the only factor of production that has conscious control over its contributions to
output (I.L.O, 1996).
DETERMINANTS OF PRODUCTIVITY GROWTH IN INDUSTRY

29
The literature has proposed various potential determinants of industry or firm productivity. These
include trade and openness, ownership, role of institutions such as labor market, public
investment in health, human capital, physical infrastructure leading to better quality of work
force, research and development (R and D), and the business environment.
There are reasons to expect a favorable effect from trade or openness on industrial productivity.
Trade leads to efficient production through gains from specialization and exchange (Mitra and
Ural, 2007). Availability of larger variety of inputs can augment firms productivity through
greater division of labour and/or through better matching between output and inputs (Krugman
and Obstfeld, 2005). The increased competitive pressures on industrial units in a liberalized trade
regime force them to be more efficient in the use of resources through better organization of
production, or effective utilization of labour, or capacity), ultimately leading to higher
productivity.In addition, trade can affect R and D and hence productivity in two contrasting ways
as argued by Devarajan and Rodrik (1991).Trade liberalization also induces firms to invest in R
and D to increase efficiency, thereby enabling them to face the increased competition arising
from international trade (Kathuria, 2008). Trade, as found by Melitz (2003) can also force least
productive firms to go out of the market thereby reallocating resources to the surviving firms so
as to increase overall productivity of the industry. Several studies show a beneficial effect of
exports on firm TFP (see for instance, Kraay, 1999; Blalock and Gertler, 2004; Fernandes and
Isgut, 2006).The evidence for developing countries, including Asian countries, however is mixed
(see Das, 2002 for a review of these studies). The productivity of various inputs in production
clearly depends on the quality of public infrastructure. For instance, the quality of human capital
unambiguously depends on the quality of education, health and social services as provided by the
government. Investment on infrastructure and social services is thus, another policy variable
having positive impact on productivity (Mitra and Ural, 2007; Iskasson, 2007). Studies by Tan
and Lopez-Acevedo (2002), Aw et al., (2005) among others have found positive influence of
human capital and training on the firms TFP.
Another policy variable that has an adverse affect on the efficiency of the firms is the prevailing
competitive condition in the sector. Restrictions on free entry and exit of firms hinder
APJEM
competition faced by existing firms and thus lower firm efficiency. Thus, the productivity of the
industry as a whole gets adversely affected by restrictive industrial policies. Free entry and exit
of, firms does not work in isolation, the precise impact depends on how it interacts with labour
market institutions (Mitra and Ural, 2007). For example, easy entry and exit will not have a
requisite effect if labour market restrictions on firing of workers are in place, since essentially
this is an exit barrier. It is also an entry barrier since it discourages entry by discouraging firms
from hiring permanent workers who would benefit from on the-job training . Empirical evidence
also exists for the positive impact of R and D activities on firm productivity (Griliches, 1998;
Kathuria, 2008). Recent literature has also focused on the role of the business environment for
firm TFP (Hallward-Driemeier., 2003; Dollar,et al., 2005; Wagner, 2007) and the effects of
foreign ownership on firm TFP (Arnold and Javorcik, 2009; Kee, 2005).It can be clearly seen
that some of the determinants discussed such as infrastructure and a favourable business
environment are outcomes of good state-business relations (SBRs). Some indeed are determined
nationally such as trade and competition policies. Others such as technological factors and R and
D intensity may be determined at the industry level.
INDUSTRIAL RELATIONS CONTRIBUTES TO PRODUCTIVITY
The idea that industrial relations affect productivity derives from a supposition that they have
favourable influence over owners, managers and workers. They may do so because they affect
the ability of management to manage; because they affect the levels of antagonism and
cooperation in the workplace; and because the terms on which labor is employed influence the
investment and innovation decisions of business. Some of the main assertions are these:

30
1. Traditional industrial relations arrangements, relying heavily on awards, militated against

experimentation and adaptation in the deployment of labor within enterprises. They also
encouraged an us and them mentality, discouraging workers from working to their capacity and
from cooperating with management in its efforts to improve the enterprises performance.
2. Trade unions adversely affect productivity by entrenching restrictive labour practices and
intensifying them and us attitudes. They may force firms to adopt inefficient personnel hiring
and firing practices, and curb the pace of work, the hours of work and skill formation
(Doucouliagos and Laroche 2003, citing McKersie and Klein 1983; Magnani and Prentice 2006).
3. On the contrary, unions have a favourable effect. They assist the resolution of workplace
issues that might otherwise cause productivity-diminishing behaviour. Freeman (1976) and
Freeman and Medoff (1984) argued that unions can raise productivity by providing workers with
a means of expressing discontent as an alternative to exiting, by opening up communication
channels between workers and management, and by inducing managers to alter methods of
production and to adopt more efficient policies.
4. Productivity growth requires the cooperation and participation of the workers. These will only
be forthcoming where employment relationships are characterized by trust and where workers
feel that they have a secure stake in the long-run success of their employer (Buchele and
Christiansen 1999, p. 326). Cooperation is fostered by the existence of robust worker rights,
APJEM
secured by strong labour market institutions, such as highly coordinated sectoral bargaining and
wage settlements that automatically extend to the non-union sector.
5. Collective agreements, especially if negotiated at the enterprise or workplace level, give
workers a greater sense of commitment to the wellbeing of the enterprise and permit the
exchange of extra benefits to workers for productivity-enhancing changes in work practices.
6. Productivity is enhanced if management is allowed to manage, with a minimum of external
interference. To this end, management must be allowed to deal with workers on an individual
basis, free from the interference of unwanted third parties (unions and arbitrators). If managers
deal directly with workers, they will get the best out of them.
7. On the contrary, externally imposed employment standards serve as a spur, inducing
employers to raise productivity and profits by technical innovation, establishing better relations
with their employees, training their staff and in other ways improving managerial practice. The
high road of good wages and conditions is a more likely route to high and rising productivity
than the low road of directive management and cost-cutting.

31
Webster and Loundes (2002) studied empirically the factors affecting employer-union and
employer-employee cooperation in larger Australian businesses, noting that more cooperative
relations were often considered to be conducive to higher productivity. Their statistical results
included a finding that lower union densities fewer union members relative to total staff were
associated with more cooperative relations between employers and employees.
From the 1960s onward, a different debate occurred, namely, whether better results (which might
include higher productivity) would come from collective bargaining. By the late 1980s, there
was significant support for collective bargaining at the enterprise level. This gained momentum
from both a desire of unions to be freed from some of the restraints of the Accord and an
endeavour by employer interests (especially the Business Council of Australia) to reduce the role
of arbitration (Hancock 1999). Employer groups, workplace managers, the union movement and
governments (federal and state) of both political persuasions all endorsed the enterprise concept
(Wooden, 2000). They claimed that enterprise bargaining would stimulate greater levels of
productivity, facilitating increased real wages and causing, eventually, increased employment
(Wooden 2001). Enterprise-level collective bargaining received legislative support in the early
1990s.
PROPOSED EMPIRICAL FORMULA FOR RELATIONSHIP BETWEEN LABOUR
RELATION AND PRODUCTION FUNCTION
The Production Function Model
I enrich a production function to allow for the possible effects of labor policies and practices. I
start with a standard production function.
APJEM
Where K is capital ,L is labor , Q is output, and v is a log normal random variable that captures
the idiosyncratic random element in production. We assume that
Where N is the number of workers, H is the number of hours and S is the intensity of efforts of
the workers. Substitution of equation (2) into equation(1) yields

32
The industrial relation environment is assumed to influence the level of output by changing the
intensity of efforts (S), as well as the hours worked (H), and the number of employees (N) in
equation 4. L,H, and S in the assembly of planes would be affected by strikes, slowdowns,
statements by union and management leaders and policies such as total quality management and
these effects, in turn, would influence productivity. Therefore, substitution into (3)yields
Where output (Q) is a function of industrial relations. (IR) policies and practices and capital.
This specification explicitly takes into account how industrial and labor relations influences the
production function
OBSERVATION
The problems of IR have their origin in the perceptions of the management, unions and the
workers. The conflicts between labour and management occur because every group negatively
perceives the behavior of the other i.e. even the honest intention of the other party so looked at
with suspicion. The problem is further aggravated by various factors like the income, level of
education, communication, values, beliefs, customs, goals of persons and groups, prestige,
power, status, recognition, security etc are host factors both economic and non-economic which
influence perceptions unions and management towards each other. Industrial peace is a result
mainly of proper attitudes and perception of the two parties. While stressing the responsibility of
the management for the quality of industrial relations, the limitations of individual management,
in this respect, have to be born in mind. There are many factors influencing the quality of
industrial relations that are beyond the control of any individual management. Factors like
APJEM
political climate of the country, multiplicity of trade unions, trade union rivalry, intra-union
factionalism and economic factors like inflation and depression, market fluctuations and
technological changes cannot be controlled by any one management. They constitute the political
and economic environment within which the enterprise has to function. This environment
influences the approach and behaviour of the workers and their unions and also the management.
In view of above, labour productivity is also largely dependent on the industrial relation of an
enterprise. It is, therefore, follows that there is significant impact of industrial relation on the
productivity of an enterprise.
Perhaps the main cause or source of poor industrial relations resulting in inefficiency and labour
unrest is mental laziness on the part of both management and labour. Management is not
sufficiently concerned to ascertain the causes of inefficiency and unrest .Even with regard to
methods of work, management does not bother to devise the best method but leaves it mainly to
the subordinates to work it out for themselves. Contempt on the part of the employers towards
the workers is another major cause. However, the following are briefly the causes of poor
industrial relations: mental inertia on the part of management and labour; an intolerant attitude of
contempt of contempt towards the workers on the part of management ; inadequate fixation of
wage or wage structure; unhealthy working conditions; indiscipline; lack of human relations skill
on the part of supervisors and other managers; desire on the part of the workers for higher bonus
or DA and the corresponding desire of the employers to give as little as possible; inappropriate
introduction of automation without providing the right climate; unduly heavy workloads;
inadequate welfare facilities; dispute on sharing the gains of productivity; unfair labour practices,
like victimization and undue dismissal; retrenchment, dismissals and lock-outs on the part of
management and strikes on the part of the workers; inter-union rivalries; and general economic
and political environment, such as rising prices, strikes by others, and general indiscipline having
their effect on the employees attitudes.

33
SUGGESTION AND RECOMMENDATION

Industrial Relations are a bonding between the employee and employer. It also adds many other
relations which are chain of previous relations. So the motto of any industry should be sustaining
good relationships between the employer and employee so that the productivity of any
organisation must keep on multiplying. Hence the primary objective can be to bring about good
and healthy relationship between two partners in the industry. As per Kirkaldy The state of
industrial relations in a country is intimately connected with the form of its political government
and the objectives of an industrial organisation may change from economic to political ends.
The following fundamental principles can be the objectives of social policy in governing
industrial relation:
Good labour management relations depend on employers and trade unions being able to deal
with their mutual problems freely, independently and responsibly.
The trade unions and employers and their organisation must be desirous of resolving their
problems through collective bargaining though in resolving such matters the assistance of
appropriate government agencies may be necessary in public interest. Collective bargaining
APJEM
therefore is the corner stone of the good relations and hence the legislative framework of
industrial relations should aid the maximum use of their process mutual accommodation.
The workers and employers organisation should be desirous of associating with the
government agencies in consideration of the general public, social and economic measures
affecting employers and workers relations.
The development of industrial relations is not due to any one single factor but rather been largely
determined by the conditions existing, and the social economic and political situation available in
different locations. The changes which took place, since earlier days, did not follow a uniform
pattern. The human relations approach to raise productivity in an democracy based on labor
partnerships is not only for sharing the profits but for taking managerial decisions .

34
Collective bargaining is another source of solving the problems of employees in the work
situation collectively. It provides a good climate for discussing the problems of workers with
their employers. The employees put their demands before the employers and the employers also
give certain concession to them. Thus it ensures that the management cannot take unilateral
decision concerning the work ignoring the workers. It also helps the workers to achieve
responsible wages, working conditions, working hours, fringe benefits etc. It provides them a
collective strength to bargain with employer.
The role of the government on industrial relations is very important as it sets the legal framework
that industrial relations operate in. Appropriate industrial relations legislation should recognize
the requirements of both employers and employees. Both the employee and the employer want to
profit from each other but are also reliant on each other. This means that the equal bargaining
power of employers and workers must be recognized. A proper industrial relations laws should
address any imbalance of power and give both groups an equal degree of control. Appropriate
industrial relations should not only allow a mixture of both collective and individual bargaining
but also facilitate employee participation in day to day workplace decisions. After all its the
structure and framework of the employment relationship, which is governed by legislation that
leads to good Industrial Relations. It helps in managing resistance to change which is inevitable.
For the growth and development of industry, changes have to be welcomed; otherwise the
organization will stagnate and be left behind. If the need for change is jointly felt by all partners
of production its acceptance can be high. Workers' participation in change strategy can facilitate
acceptable solutions with a view to secure effective and smooth implementations of decisions.
Workers' participation can encourage communication at all levels. Since both partners of
production are involved in the decision-making there will be fewer changes of distortion and/ or
failure in communicating the decision. Joint decision- making ensures the there will be minimum
industrial conflict an economic growth can be free form distracting strife. Workers' participation
at the plant level can be seen as the first step to establishing democratic values in society at large.
In the work situation, an individual worker has to face many problems such as, low wages, long
hours of work, loss incentive etc. These problems of an individual or few individuals cannot
attract the attention of the employer because of their less bargaining power. The growth of trade
union increased the bargaining strength of workers and enables them to bargain for their better
conditions collectively
APJEM
For achieving the objectives of improved industrial relation and increased productivity the
following line of action is suggested:
A realistic attitude of managers towards employees and vice versa for humanizing industrial
relations.
Proper organization climate and extension of area of Industrial Relations,
Institutionalism of industrial relations and effective forums for interaction between

management and trade unions at plant, industry and national levels.
A comprehensive system of rules and discipline,
The maintenance of an efficient system of communication,
An objective follow-up pattern for industrial relations system.
Respect for public opinion and democratic values
Usually, working conditions are reflected through the concept of quality of work.. Increased
efforts should be made to promote a good working environment for all including equal
opportunities for the disabled, gender equality, good and flexible work organisation permitting
better reconciliation of working and personal life, lifelong learning, health and safety at work,
employee involvement and diversity in working life.

35
CONCLUSION
Industrial relations are of great importance in industrial life. These relations have great bearing
on the economic, social and political spheres of our society. If in an organisation, relations
between labour and management are cordial, there will be industrial peace and interests of both
the parties will be automatically safeguarded along with the increase in the industrial
productivity. The HR Employee Relations Manager should direct the organization's employee
relations function. They must develop employee relations policies and ensure consistent
application of company policies and procedures. In addition, they are also responsible for
employee dispute resolution procedures, performing internal audits, and taking appropriate
action to correct any employee relations issues.
REFERANCES
1. Anyawu, U.O. (2003): Productivity And Capacity Building, Paper presented at the 44th
Annual Conference of the Nigerian Economic Society (NES), May 14, 2007
2. Arnold, J. And Javorcik, B. (2009) Gifted kids or pushy parents? Foreign acquisitions and
plant productivity in Indonesia, Journal of International Economics, 79, 42-53.
APJEM
3. Biggs, T. M Shah, and P. Srivastava (1995): :Technological capabilities and Learning in

African Enterprises. World Bank Technical Paper 288, Africa Technical Department Series,
Washington, DC. World Bank.
4. Blalock, G. And Gertler, P. (2004) Learning from exporting revisited in a less developed
country setting, Journal of Development Economics, 75, 397-416.
5. Buchele, R. And Christiansen, J. (1999), Employment and Productivity Growth in Europe
and North America: The Impact of Labour Market Institutions, International Review of
Applied Economics, vol 13, 313-332.
6. Collier, P and J. Gunning (1999): Explaining African Economic performance. Journal of
Economic Literature 37(1): 64-11
7. C. J. Hawkins, Some Effects of Workers Participation in David F. Hesthfield (Editor),
Economics of Codetermination, p. 36.
8. Devarajan, S. And Rodrik, D. (1991) Pro-competitive effects of trade reform: results from a
CGE model of Cameroon, European Economic Review, 35, 1157-1184
9. Das, D. K. (2002) Trade liberalization and industrial productivity: an assessment of
developing country experience, Working Paper No. 77, ICRIER, New Delhi.
10. Dollar, D., Hallward-Driemeier, M. And Mengistae, T. (2005) Investment climate and firm
performance in developing economies, Economic Development and Cultural Change,
54, 1-31.
36
12. Englama, A. (2001): Unemployment concepts and Issues, Bullion, Central Bank of
Nigeria, Oct/Dec

11. Doucouliagos, C. And Laroche, P. (2003), What Do Unions Do to Productivity? A MetaAnalysis. Industrial Relations, vol. 42, 650-691.
13. Fernandes, A. M. And Isgut, A. E. (2006) Learning-by-exporting effects: are they for real?,
Mimeo, The World Bank and Institute for Competitiveness & Prosperity.
14. Freeman, R. (1976),Individual Mobility and Union Voice in the Labor Market. American
Economic Review, vol. 66, pp. 3618.
15. Freeman, R. And Medoff, J. (1984), What do Unions do? New York, Basic Books.
16. Griliches, Z. (1998) R&D and Productivity: The Econometric Evidence, University of
Chicago Press, Chicago.
17. Humphrey, D.B. (1991): Productivity in Banking and Effects from Deregulation, Economic
Review, March/April, 77(12).
APJEM
18. Hallward-Driemeier, M., Wallsten, S., and Xu, C. (2003) The Investment climate and the
firm : firm-level evidence from China, Working Paper 3003, World Bank, Washington
19. Hancock, K. (1999), Labour Market Deregulation in Australia, in Richardson, S. (ed.).
Reshaping the Labour Market: Regulation, Efficiency and Equality in Australia. Cambridge
University Press: New York.
20. Isaksson, A. (2007) Determinants of total factor productivity: A literature review, Research
and Statistics Branch, UNIDO.
21. Krugman, P. R. And Obstfeld, M. (2005) International Economics: Theory and policy,
Addison Wesley, Boston.
22. Kathuria, V. (2008) Does FDI inflow complement or substitute R&D investment by medium
and high-tech firms in India? Relationship in the post-reforms period, Transnational
Corporations, 17, 45-66.
23. Kraay, A. (1999) Export and economic performance: Evidence from a panel of Chinese
enterprises, Revue dEconomie du Developpement, 1, 183207.
24. Kathuria, V. (2008) Does FDI inflow complement or substitute R&D investment by medium
and high-tech firms in India? Relationship in the post-reforms period, Transnational
Corporations, 17, 45-66.

37
25. Kee, H. L. (2005) Foreign ownership and firm productivity in Bangladesh garment sector,
Development Research Group Trade, The World Bank, Washington DC, USA.
26. Mitra, D. and Ural, B. P. (2007) Indian manufacturing: a slow sector in a rapidly
growingeconomy, Policy Research Working Paper No. 4233, The World Bank, Washington
DC.
27. Melitz, M. J. (2003) The Impact of trade on intra-industry reallocations and
aggregateindustry productivity, Econometrica, 71, 1695-1725
28. Mitra, D. And Ural, B. P. (2007) Indian manufacturing: a slow sector in a rapidly growing
economy, Policy Research Working Paper No. 4233, The World Bank, Washington DC.
29. Magnani, E., and Prentice, D. (2006), Unionization and Input Flexibility Evidence from US
Manufacturing 1973-1996, Industrial and Labor Relations Review, vol. 59, pp. 386-407.
30. .Morris M. Kleiner, Jonathans S. Leonard, and Adam M. Pilarski (2002) , How Industrial
relation affects plant performance: The case of commercial Aircraft manufacturing ,
Industrial and Labour Relation Review, Vol.55, No.2(January) by Cornell University
31. Niel W. Chamberlain, Collective Bargaining, p. 445.
APJEM
32. Oyeranti, G.A (2003): Concept and Measurement of Productivity Paper Submitted for
consideration for the 44th Annual Conference of the Nigerian Economic Society (NES),
May.
33. Tan, H. And Lopez-Acevedo, G. (2002) Mexico: in-firm training for the knowledge
economy, Policy Research Working Paper 2957, World Bank, Washington D C.
34. Wagner, J. (2007) Exports and productivity: a survey of evidence from firm level data,
World Economy, 30, 60-82.
35. Webster, E. And Loundes, J. (2002), Factors Affecting the Industrial Relations Climate in
Australian Enterprises, Melbourne Institute Working Paper No. 7/02.
36. Wooden, M. (2000), The Transformation of Australian Industrial Relations, Federation
Press,Sydney.
37. Wooden, M. (2001), Industrial Relations Reform in Australia: Causes, Consequences and
Prospects, Australian Economic Review, vol. 34, 243-62.

38
38. Yesufu, T.M. (2000): Trade Unions and Industrial Relations Human Factor in National
Development: Nigeria. Isted., Benin City, and Ibadan, University of Benin Press and
Spectrum Books Limited.

Paper 92

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Paper 92

Uploaded by

Copyright:

Available Formats

APJEM

Arth Prabhand: A Journal of Economics and Management

INDUSTRIAL RELATION A WAY TO IMPROVE PRODUCTIVITY

Pinnacle Research Journals

RESEARCH OBJECTIVES AND METHODOLOGY

Pinnacle Research Journals

decrease in profitability is not essentially in tune with productivity as profitability is measured on

Pinnacle Research Journals

RATIONALE OF THE STUDY

Pinnacle Research Journals

Pinnacle Research Journals

Pinnacle Research Journals

Pinnacle Research Journals

1. Traditional industrial relations arrangements, relying heavily on awards, militated against

Pinnacle Research Journals

Pinnacle Research Journals

Pinnacle Research Journals

SUGGESTION AND RECOMMENDATION

Pinnacle Research Journals

Proper organization climate and extension of area of Industrial Relations,

Institutionalism of industrial relations and effective forums for interaction between

A comprehensive system of rules and discipline,

The maintenance of an efficient system of communication,

An objective follow-up pattern for industrial relations system.

Respect for public opinion and democratic values

Pinnacle Research Journals

3. Biggs, T. M Shah, and P. Srivastava (1995): :Technological capabilities and Learning in

Pinnacle Research Journals

Pinnacle Research Journals

Pinnacle Research Journals

You might also like