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IR Issues in organizations
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Chapter -2

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Definition
Industrial relation is a process by which people and their organization interact at the work place to establish the terms and conditions of employment. Study of workers and their trade unions, management employers association and the state institutions concerned with the regulation of employment H.A. Clegg

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Definition
Problems of human relationship arising from the sale of services for a wage and working on the premises of employers and under their control from the subject matter of industrial relations Dale Yoder

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Emergence of Industrial Relation Loss of Freedom


Unhygienic working condition. Employment of Children. Freedom to contract. The Dynamics of Market. The pursuit of Self Interest.

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Impact of Industrial RevolutionLabor. Elimination of Physical


Mass production at Low Cost. Specialization of function Elaborate Control Mechanism Reduction in work skills. Sense of Alienation. Evolution of Entrepreneurship. Interdependence Increased Mobility
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Features of Industrial Relations. Born out of Employment Relationships.


Characterized by conflict and Cooperation. Part of the system. Relationship has legal dimensions.

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Objectives of Industrial Relations Relationship Employer Employee


Labour Management Relations. Industrial peace and productivity. Industrial Democracy. Liaison Functions.

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Different Approaches to IR Perspective Unitary


Pluralistic Perspective. Radical Perspective.

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Unitary Perspective
Based on the assumption that orgn is an integrated group of people with Single authority/loyalty structure. Share common values, interest and objectives. Managements decision is legitimate and rationale. Organization system is in harmony. Conflict is unnecessary and exceptional.
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Basic Assumption
About workplace relations - management and employees share common interest - single source of authority About workplace conflict - inevitable, destructive, to be avoided - caused by poor management, agitators or poor communication. About trade unions - a competing and illegitimate source of authority - an unwarranted intrusion in the workplace - create conflict where none would otherwise exist About collective bargaining - creates and institutionalizes unnecessary divisions of interest - serves to generate workplace conflict rather than resolve it

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Pluralistic Perspective
Based on assumption that orgn is composed of individuals who unite into sectional groups. Each group have its own, interest, objectives and leadership. perceived as multi structured and competitive. In a permanent state of dynamic tension.

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Basic Assumptions
About workplace relations - managers and employees have different objectives - multiple sources of legitimate authority about workplace conflict - inevitable, caused by different opinions and values, benefit to an organisation - avoid by accepting trade unions, include in decision-making about the role of trade unions - not the cause of conflict - are expression of diverse workplace interests that always exist - a legitimate part of workplace relations Power Point about collective bargaining slides by Megha 1212

Radical/Marxist Perspective that orgnBased on assumptions


Exist within a capitalist society. Group conflict is the source of societal change. Conflict arises due to disparity in economic power.

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Basic Assumptions
about workplace relations - reflects a wider class of conflict between capital and labour - reflects coercion of working class into dominant capitalist values about workplace conflict - inevitable: capital seeks to reduce costs, workers seek fairer price for labour - will only cease by revolutionary change in distribution of property and wealth about trade unions - should raise revolutionary consciousness of workers - should not limit action to improving material lot of workers - union leaders who accommodate management betray the workers about collective bargaining - merely offers temporary accommodations - leaves important managerial powers in tact

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Comparative picture
Unitary Assumption Capitalist Society. Integrated group of people. Common values, interest.

Pluralistic Post Capitalist Society. Coalescence of sectional groups Different values, interest & objectives

Radical Capitalist Division btwn labour & Capital Imbalance & inequality in society

Nature of Conflict

Single authority and loyalty structure. Coercion Intrusion from outside

Competitve Inherent in authority & economic & loyalty structure. social structure Compromise & agreement Legitimate Internal to work org. Change society Employee response to capitalism Develop political awareness & 1515 activity.

Resolution of Conflict Role of trade unions

Factors Affecting Industrial Relations


Institutional factors. Economic factors. Social factors. Technological factors. Psychological factors. Political factors. Enterprise- related factors. Global factors.
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Theories of Industrial Relation Psychological


Sociological. Human Relations. Gandhian Systems.

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Psychological Theory
Problem of IR are deeply rooted in the perception & attitude of Participants.
Influence of individuals perception on his behaviour was studied by Mason Harie. Outcome of the studyThe impression about a person is radically different when he is seen as a representative of other group. The management & labour see each other as less dependable. The management & labour see each other as Power Point slides by Megha 1818 deficient in thinking about interpersonal relations

Sociological Theory
Based on the fact- Sociological aspects are important in industry than other factors. Which includesValue Systems. Customs. Norms Attitude. Perception.
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Contd..
Industry is a social world. Workshop is a community with differentPersonalities, education background, attitude, likes & dislikes. Differences creates problems of conflict & Cooperation.

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Human Relation Approach A system of management, maximise output by


meeting social and psychological needs of employees in the workplace. Managers identify and satisfy workers social and psychological needs Workers are seen as different to other production resources. Workers participation in work allocation, decisionmaking processes.

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Gandhian Approach
Based on truth & Non violence. Non- coperation & Trusteeship. Trusteeship Theory- no room for conflict of interests btwn capitalist & labourers.

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Rules to be followed in Disputes seek redrssal of demands only The workers should
through collective action. In case of strike- TU should seek by ballot authority from all workers, remain peaceful & non violent. The workers should avoid strikes. The strikes should be resorted after failure of all legitimate measures. Workers should avoid formation of union in philanthropic organization.
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