1. Industrial Relations Concept and Models.pptx

Industrial Relations

1. INDUSTRIAL RELATIONS Lecture: Concepts and Models

2. SOME IMPORTANT ASPECTS IN INDUSTRIAL RELATIONS There should be full cooperation between labour and management to increase production and hence economic development. The employer should recognize the role of labour and the need to secure fair wages and working conditions. Labour should recognize the duty to the organization and hence to the country. Mutual discussion of all problems to settle all disputes without hampering the production. Find out the methods for resolving conflicts/industrial disputes. Make agreements to create better cooperation between the parties involved in the production.

3. DEFINITION OF INDUSTRIAL RELATIONS ‘The relation between employers and employees in industry’ ‘Relationships between management and employees or among employees and their organizations, that characterized or grow out of employment’ ‘Complex of interrelations among managers, workers and agencies of government- Dunlop’

4. DEFINITION OF INDUSTRIAL RELATIONS Basic elements of industrial relations (evolution) Employer-employee relationship The activities of trade union The activities of government/state for regulating and controlling relations among the parties The industry is a part of state, so the relation to the economic development through relationships among the parties.

5. DEFINITION OF INDUSTRIAL RELATIONS “Industrial relations covers industrial employment only, but in a wider sense, it covers public employment also”. Industrial organization is based on two large aggregates: 1) Accumulation and aggregation of large capital, and 2) aggregation of large number of worker organized under trade unions.

6. PARTIES TO INDUSTRIAL RELATIONS Industrial Relations Employees Employee association Government Employers Employers association Courts and tribunals

7. DOMINANT ASPECT TO INDUSTRIAL RELATIONS Cooperation Conflict Labour and capital Conflict are evident Various school of conflict

8. IMPORTANCE OF INDUSTRIAL RELATIONS Creating dynamism Creating cooperation Management satisfaction Job satisfaction Maintenance of environment Reducing disputes Reducing absenteeism Reducing labour turnover Continuous development

9. APPROACHES TO INDUSTRIAL RELATIONS Protection and promotion of economic interest of the parties. Each would work according to his ability and get according to his needs. ( Webb, Cole, Commons, and Karl Marx ) Industrial relations is as a product of the industrial society. The components of society influence industrial relations. Perception to the parties to the same problems. The cooperation or conflict lies because of the perceptual coherence or mismatch. Broader perspective, serving country’s objective. Privileging disadvantage people. In narrower perspective, the internal power structure of trade union-management relationship. Economic Approach Psychological Approach Political Approach Sociological Approach

10. MODELS OF INDUSTRIAL RELATIONS – DUNLOP’S MODEL OF IRS Developed by John Thomas Dunlop in 1958 System approach in industrial relations ‘to explain why particular rules are established in particular industrial relations systems and how and why they change in response to changes affecting the system’ Formulation of rules R = ∫ [A, E, I]; where, R = rules, A = Actors, E = Environment, and I = Ideology

11. MODELS OF INDUSTRIAL RELATIONS – DUNLOP’S MODEL OF IRS Rules: policies, regulations, agreements, laws, awards, courts decisions, government orders, traditions, customs, etc. (may be written or not) Substantive rules Procedural rules Rules for enforcement. Actors: management, workers, government, NGOs, etc. Environment: where actors are performing activities. Three environments-- Technological work community Market context Locus of control Ideology: set of beliefs and ideas of actors.

12. MODELS OF INDUSTRIAL RELATIONS – DUNLOP’S MODEL OF IRS Criticisms: No attention of conflict in industrial relations. One actor can make rules. Not suitable for small-sized establishment. No process have shown to formulate rules. No attention for specialized situation.

13. IILS MODEL The International Institute of Labor Studies (established in 1960, by ILO) has developed its own model. Almost similar to Dunlop’s model Four elements in industrial relations: 1) Environment, 2) Parties, 3) Processes, 4) Rules. Rules: 1) Monopolistic (employer has all rights), 2) Dualistic (employer and trade union), and 3) Pluralistic (many members) Criticisms: Absent of multi-unionism and union rivalries Absent of small-sized organizations Absent of the impact of particular factor of environment Absent of extraordinary situation Absent of behavioral aspects.

14. CONFLICT MODEL Conflict in inevitable between management and labour. So, industrial relations occur because of the perceptual differences, economic distribution, and power. Alienation: Marxian model– labour are sold and being exploited by the management Division of labour– restricting freedom of the worker Factory system- complete method of domination. Alienation cannot be overcome by just increasing wages, giving freedom, or social reform. So, it is inevitable.