INDUSTRIAL RELATIONS

An introduction & A comprehensive vision of IR

Background of IR
Not only conflict resolution, but also co-operational. IR has become more strategic unleashing organizational synergy. IR relationship between mgt & workers roots in eco & social changes due to the industrial revolution. Started with confrontational, legalistic conflict ridden relationship. Some definitions workers offer their services & employers utilize these.
Art of living together for purposes of production J. Henry Richardson Relationship is regulated by Govt. Allan Flanders & H A Clegg; whereas, Richardson feels parties learn to live together internal adjustments/ process of accommodation. Problems of human relationship arising from sale of service for wage on premises of and under control of employer Dale Yoder.

Hegel says IR is like two faces of a coin thesis to antithesis and then to synthesis cooperation conflict cooperation as a continuous process.

Definitions & explanations contd

Based on mutual adjustments on interests and goals. Depends up on parties social, psychological and economic satisfaction. Encyclopedia Britannica emphasizes that IR covers individual & collective relations; It has added joint consultations to Government regulating rel. IR refers to all types of inter and intra group relationships within industry. Composite of socio-politico- psycho influence for economic value creation. Environmental influence; ideologies & values of parties, technology etc. IR is totally interactive in nature both, harmony & conflict exist as accepted. In the end, parties learn to accommodate conflict. IR crosses boundary of industry and interacts with environment in society therefore, environment exerts pressure on IR; with the result that the Organizational issues/ conflicts get bound up with those of society at large. Yesterdays decision => todays problem; and Todays solution + change in environment = future problem Past individual + collective experiences => attitudes, expectations & relationships

Definitions & explanations contd

IR issues are perennial due to continuous interests conflict bet. mgt & workers. IR does not have shape of its own like water shapes based upon mkt. forces. IR needs to be more oriented towards HRM and Employee Relations.
Developmental initiatives making people more accountable & committed business partners. Have Collective Decision Making instead of Collective Bargaining. Distribution of benefits not as per collective bargaining but proportionately to all stake holders.

Conflict resolution should be towards win- win rather than win- lose. Table showing Traditional Ind. Relations Vs. HRM under various aspects. Salamon, in 1998 said: Industrial Relation is a set of phenomena operating both from within and outside the workplace, connected with determining and regulating the employment relationship.

Objectives of Industrial Relations

Development of healthy employer- employee relations
Employer Individual employee relationship
Wage and salary administration Career prospects inclusive of planning and promotion Retirement and Medical benefits Discipline and grievance redressal Training & Development and Counselling Workmens compensation and insurance related issues This concern relations between Management as a body and workers as a group regulated by a legal structure Issues related to rights. Protocols, Benefits, Welfare measures etc.

Labour Management relations

Maintenance of Industrial Peace and High Productivity

Being a Facilitator rather than Law Enforcer to maintain industrial peace Proactive interaction rather than by resolving strikes by unions & minimizing man days loss Upgrading technology & production methods and securing employee commitment & cooperation Workers participation in management

Development and growth of Industrial Democracy

Improvement of economic conditions of workers

Forms of Industrial Relations

Interaction is characterized by a certain Balance of Power The dominant player in the organization depends on the environment viz:
In a highly regulated environment, it is the State In a market driven economy, it is the Management or Employer In a socialist economy and environment, it is the Trade Unions or the Workers Dominant stakeholder applies pressure tactics etc e.g. litigation, direct action & dominated player keeps trying to protect his threatened interests. Dominant player makes concessions to buy peace on ad-hoc basis. Adopts `divide and rule policy The dominant player, strikes equation with some individual or groups to favour it, leading to a compromise of the interests of the dominated stakeholder. Transformational Process Model the Corporation continuously defines environment and responds appropriately to grow change in mindset and values of the interacting stakeholders resulting in strategic survival and growth of the organization

Managing by Contending

Managing by Conceding

Managing by Colluding Managing by Collaborative Problem Solving

Theories of Industrial Relations

Dunlop System Theory (1958)
IR= f (a,t,m,p,I) Subsystem of society actors, contexts, ideology and a body of rules to govern the actors at their work place and the work community. Conflict is inherent in an industrial system & Collective Bargaining is central to and is required as a formal system to resolve the conflict. R= f (b) or r= f (c) [ r = rules governing IR; b = collective bargaining; c = conflict resolved through cb] Pessimistic and Optimistic approaches Inherent deprivations for workers in their role as an employee in capitalist economy Integration of people in to a work situation which motivates them to work together productively To co-operate through mutuality of interests and to gain satisfaction from their relationship Owners and workers are trustees; Strike - non-violent; Evil in the society is because of wrong systems not wrong individuals; Higher productivity -> Higher share to workers

The Pluralist Theory of Flanders (1970)

The Structural Contradictions Theory of Hyman (1971)

Human Relations Theory The Trusteeship Theory of Mahatma Gandhi

The Industrial Relations System

THE GLOBAL ENVIRONMENT THE NATIONAL ENVIRONMENT VALUE SYSTEM / COMMON IDEOLOGY BINDING THE VARIOUS SOURCES IN THE SOCIETY ECONOMIC FACTORS

GOVERNMENT

BUSINESS

LABOUR

SOCIO-POLITICAL FACTORS

TECHNOLOGICAL FACTORS

THE INDUSTRIAL RELATIONS SYSTEM

THE I R SYSTEM IS A WEB OF RULES FORMED BY THE INTERACTION OF THE GOVT., BUSINESS AND THE LABOUR, UNDER INFLUENCE OF THE EXISTING AND EMERGING ECONOMIC, SOCIO-POLITICAL AND TECHNOLOGICAL FACTORS