INDUSTRIAL

RELATIONS:
AN INTRODUCTION

The Pre-industrial revolution period was characterized by a simple

process of manufacture, small scale investment , local markets and
small number of people employed. The population of world was less,
industries were less, issues were less and therefore, the problems were
less. Few more characteristics of Pre-Industrial Revolution period is as
under:
Proximity between manager and the labor.
It was easier to secure co-operation of the employees.
Grievance or misunderstanding on the part of either party could be
promptly removed.
There was no interference by the State in the Economic activities of
the people.
Under such a set up industrial relations were simple, direct and
personal.

The situation underwent a marked change with the advent of

industrial revolution- size of the business increased needing
investment of enormous financial and human resources. Therefore
the need of new setup that required unbiased neutral, rational and
analytical approach to satisfy everybodys need .
In the broad sense, industrial relations cover all such
relationships that a business enterprise maintains with various
sections of the society such as workers, state, customers and public
who come into its contact.
In the narrow sense, it refers to all types of relationships
between employer and employees, trade union and management,
works and union and between workers and workers. It also include
all sort of relationship at both formal and informal levels in the
organization.

In industrial relations it is to study people who get together at their work, what
difficulties arise between them, how their relations including wages and working
conditions, etc., are regulated, how their relations including wages and working
condition etc. are regulated. Industrial relations thus include both industrial
relations and collective relations as well as the role of the state regulating these
relations.
The term Industrial Relations comrpises of two terms: Industry and
Relations. Industry refers to any productive activity in which an individual
(or a group of individuals) is (are) engaged. By Relations we mean the
relationships that exists within the industry between the employer and his
workmen
The term Industrial Relations explain the relationship between employees and
management which stem directly or indirectly from union-employer relationship.
Industrial Relations involve the study and practice of collective bargaining,
trade unionism, and labor management relations, while human resource
management is a separate, largely distinct field that deals with non-union
employment relationships and the personnel practices and policies of employer.

IR Defined:
Dale Yoder Industrial relations is a relationship between management and
employees or among employees and their organizations, that characterize and
grow out of employment

Prof Dunlop IR may be defined as the complex of Inter-relations among

workers, managers and government

The ILO IR deal with either the relationships between the state and the
employers and workers organization or the relation between the occupational
organizations themselves

PARTIES TO INDUSTRIAL
RELATIONS

Evolution of IR in India
Employee employer relationship
Employers are the people who own the instrument
and material of production and employ the
workers.
Relationship between employee-employer was
informal, personal and intimate since the business
and industrial establishments were small.
The growth of the giant sized joint stock
companies and business corporations, which
employed thousands of workers changed the
relationships.
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 In India occupations were carried on by small

manufacturers in their cottages, mostly on
hereditary basis.
Slavery was common.
Master-slave relations later on converted to
master-servant.
The Indian craft and arts were badly damaged
during the invasions of foreign invaders, which
lasted about 700 years
After invasion of East India Company in 1883,
the British Industrialist developed some industries
(cotton, jute, railways plantation, coal mines, etc.)
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 Industrial relations is a by product of industrial

revolution , it originates from excessive
exploitation of workers by the owners of
industries.
Trade unions were resisted and crushed by
employers.
The first world war (1914-1918) is the first
milestone enroute to industrial relations in
India.

 By the end of 19th century and start of 20th century

govt. started paying attention towards inhuman
working conditions of mine & factory workers.
British Government set up a Royal Commission
on labour (1929-1931) to conduct a study on the
working conditions of Indian Labour.
As a result of the same conciliation and
adjudication were formulated.

10

 After Independence Industrial Dispute Act, 1947

Which laid down a comprehensive dispute
settlement machinery to be applicable to all states
and passed three important Central Labour Laws:
The Minimum Wages Act 1948,
The Employees State Insurance Act 1948
The Employees Provident Funds Act 1952

Five year plans of India

In 1969 first National Commission on Labour
was formed and many banks, sick textile mills,
sick steel plants were nationalized.
New Economic Policies in 1991
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Industrial Relations : A Snapshot

Labour management relation, employee
employer relations, union management relations,
personal relations, human relations and so on.
IR is the relationship between employees and
management in the day - to - day working of
industry .
IR describe relationships between management
and employees or among employees and their
organisations that characterise or grow out of
employment.
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Indian Constitution and IR

Constitutional rights : adequate means of livelihood,
equal pay for equal work, similar working conditions,
living wages, etc.
Article 14 says that the state shall not deny to any
person equality before the law
Article 16 guarantees equality of opportunity in
matters of public employment
Article 19 guarantees the right to freedom of speech
and expression.
Article 24 of the constitution prohibits employment of
children below 14 yrs of age in factories.
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 Article 39 deals with same pay for same work.

Article 42 ensures good working conditions.
Article 43 deals with living wages.

Dr. Parikshit Joshi

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Objectives of IR
Develop and retain employee-employer relationship.
To enhance the economic status of the worker by
improving wages, benefits and by helping the worker in
evolving sound budget.
To regulate the production by minimizing industrial
conflicts through state control.

Dr. Parikshit Joshi

15

Objectives of IR cont.
To provide an opportunity to the workers to have a
say in the management and decision-making.
(workers participation in decision making)

To improve workers strength with a view to solve

their problems through mutual negotiations and
consultation with the management.
To avoid industrial conflict and their consequences
To extend and maintain industrial democracy.

Dr. Parikshit Joshi

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Factors affecting Industrial Relations

Institutional Factors State policy, labour laws,
collective bargaining agreement, labour unions.
Economic Factors type of business
organization sole proprietorship, partnership,
MNC, Govt Economic Policies, labour supply
in market.
Social Factors Cast, colour, social values,
norms, social status
Dr. Parikshit Joshi

17

 Technological Factors introduction of new and

improved technology
Psychological Factors owners attitude,
perception of workforce, motivation, morale.
Political Factors political system, system of
government political philosophy, attitude of
government towards trade unions.
Global Factors international relations, global
conflicts, international labour agreements.
Dr. Parikshit Joshi

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APPROACHES TO IR
Division 1

Division 2

UNITARY
APPROACH

PLURALISTIC
APPROACH

APPROACH
ES
OF
IR

Division 3
MARXIST APPROACH

Detailed analysis
UNITARY
UNITARY APPROACH
APPROACH

IR

MUTUAL
MUTUAL CO-OPERATION
CO-OPERATION ,, INDIVIDUAL
INDIVIDUAL TREATMENT
TREATMENT ,,
TEAM
TEAM WORK
WORK AND
AND SHARED
SHARED GOALS
GOALS
WORK
WORK CONFLICT
CONFLICT IS
IS CONSIDERED
CONSIDERED TO
TO BE
BE TEMPORARY
TEMPORARY
DEVIATION
DEVIATION
THERE
THERE IS
IS NO
NO WE
WE THEY
THEY FEELING
FEELING
CONFLICT
CONFLICT IS
IS NOT
NOT ONLY
ONLY UNNECESSARY
UNNECESSARY BUT
BUT ALSO
ALSO
DESTRUCTIVE
DESTRUCTIVE
REACTIVE
REACTIVE IR
IR STRATEGY
STRATEGY
CRTICISM
CRTICISM

Detailed analysis
PLURALISTIC
PLURALISTIC APPROACH
APPROACH

IR

TOTALLY
TOTALLY DEPARTS
DEPARTS FROM
FROM UNITARY
UNITARY APPROACH
APPROACH
IT
IT PERCEIVES:
PERCEIVES:
1.ORGANISATIONS
1.ORGANISATIONS AS
AS COALITIONS
COALITIONS OF
OF COMPETING
COMPETING
INTEREST
INTEREST
2.TRADE
2.TRADE UNIONS
UNIONS AS
AS LEGITIMATE
LEGITIMATE REPRESENTATIVES
REPRESENTATIVES
3.STABILITY
3.STABILITY IN
IN IR
IR
CONFLICT
CONFLICT BETWEEN
BETWEEN MANAGEMENT
MANAGEMENT AND
AND EMPLOYEES
EMPLOYEES IS
IS
INEVITABLE
INEVITABLE
UNIONS
UNIONS BALANCE
BALANCE THE
THE POWER
POWER BETWEEN
BETWEEN EMPLOYEES
EMPLOYEES AND
AND
MANAGEMENT
MANAGEMENT
EVOLUTION
EVOLUTION IN
IN ENGLAND
ENGLAND
RECENT
RECENT THEORIES
THEORIES FROM
FROM FLANDERS
FLANDERS AND
AND FOX
FOX

Detailed analysis
MARXIST
MARXIST APPROACH
APPROACH

IR

SIMILAR
SIMILAR TO
TO PLURALISTIC
PLURALISTIC
CONFLICT
CONFLICT IS
IS AA PRODUCT
PRODUCT OF
OF CAPITALIST
CAPITALIST SOCIETY
SOCIETY
IT
IT FOCUSES
FOCUSES ON
ON TYPE
TYPE OF
OF SOCIETY
SOCIETY
FOR
FOR MARXISTS,INDUSTRIAL
MARXISTS,INDUSTRIAL CONFLICT
CONFLICT HAS
HAS WIDE
WIDE
MEANING
MEANING
INDUSTRIAL
INDUSTRIAL CONFLICT
CONFLICT IS
IS SYNONYMOUS
SYNONYMOUS TO
TO POLITICAL
POLITICAL
AND
AND SOCIAL
SOCIAL UNREST
UNREST
ALL
ALL STRIKES
STRIKES ARE
ARE POLTICAL
POLTICAL
VIEW
VIEW OF
OF MARXISTS
MARXISTS ON
ON OTHER
OTHER APPROACH
APPROACH