Unit-1 Industrial Relation management ppt project

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1. Learning Outcomes After attending this session you are able to understand: Understand the concept of Industrial Relation Why Industrial Relations are important and Objectives in an industry. Different Approaches for Industrial relation How International Labor organization helps in maintain the IR Concept of Industrial Peace 1 1 1

2. Unit-1 Industrial Relation Presented By : Archana Chaurasia Jiwaji University, SOS management

3. Meaning & Concept The term „Industrial Relations‟ comprises 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 exist within the industry between the employer and his workmen.” The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels.

4. Continued…. The term industrial relations has a broad as well as a narrow outlook. Originally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. The relationships which arise at and out of the workplace generally include the relationships between individual workers, the relationships between workers and their employer, the relationships between employers, the relationships employers and workers have with the organizations formed to promote their respective interests, and the relations between those organizations, at all levels. Industrial relations also includes the processes through which these relationships are expressed (such as, collective bargaining, workers‟ participation in decision-making, and grievance and dispute settlement), and the management of conflict between employers, workers and trade unions, when it arises.

5. Definitions The Industrial Relation relations also called as labor - management, employee employers relations. Employer-employee relationships that are covered specifically under collective bargaining and industrial relation laws. “Concerned with the systems, rules and procedures used by unions & employers to determine the reward for effort & other conditions of employment .”

6. According to Bethal and associates assert : Industrial relation is that part of management which is concerned with the manpower of the enterprise. Manpower can be management and workers. According to Tead and Netcalfe : Industrial relation is the composite result of the attitudes and approaches of employers and employees towards each other with regard to planning, supervision, direction and coordination of the activities of an organisation with a minimum of human efforts and frictions with an animating spirit of cooperation and with proper regard for the genuine well being of all members of the organisation. Industrial relation is the mutual relationship between all the employer and employees of the organisation. According to J. Hanry Richardson : IR is an art, the art of living together for purpose of production. The parties while working together learn this art by acquiring the skills of adjustment. The workers as a group form Trade Unions, the employers form their own associations, and the State provides institutions for the regulation of relations.

7. Objectives of IR: The primary objective of industrial relations is to maintain and develop good and healthy relations between employees and employers or operatives and management. The same is sub- divided into other objectives. Thus, the objectives of IR are designed to: 1. Establish and foster sound relationship between workers and management by safeguarding their interests. 2. Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties. 3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of workers.

8. Continued… 4. Provide an opportunity to the workers to participate in management and decision making process. 5. Raise productivity in the organisation to curb the employee turnover and absenteeism. 6. Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of relationship between workers and management. 7. Establish and nurse industrial democracy based on labour partnership in the sharing of profits and of managerial decisions. 8. Socialise industrial activity by involving the government participation as an employer.

9. Objectives of Industrial Relation Accordingly, Kirkaldy has identified four objectives of industrial relations as listed below: 1. Improvement of economic conditions of workers. 2. State control over industrial undertakings with a view to regulating production and promoting harmonious industrial relations. 3. Socialisation and rationalisation of industries by making the state itself a major employer. 4. Vesting of a proprietary interest of the workers in the industries in which they are employed.

10. Continued….. To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. To avoid industrial conflict or strife and develop harmonious relations,. To raise productivity to a higher level in an aera of full employment by lessening the tendency to high turnover and frequency absenteeism. To improve the economic conditions of workers in the existing state of industrial managements and political government To Protect management and labor interests by securing

11. Continued… mutual relations between the two groups. To Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits. To Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum. To bring about government control over plants where losses are running high, or where products are produced in the public interest.

12. Parties to Industrial Relation Industrial relations are the outcome of employment relationships in industry i.e between employers and labours. The Govt. or State influences these relations to a great extent. 1. Workers and their Organisations : The personal characteristics of workers, their culture, educational attainments, qualifications, skills, attitude towards work etc. play an important role in IR. Workers organisations known as Trade Unions, are political institutions . Trade unions are formed for safeguarding the economic and social interests of the workers. They put pressure on the management for the achievement of these objectives. 2. Employers and their Organisations : The employers provide employment to workers and try to regulate their behaviour for getting high productivity from them. Industrial unrest generally arise when the employers demands from the workers are very high and they offer low economic and other benefits to the workers. In order to increase their bargaining power, employers in several industries have organised employers associations. These associations put pressure on the trade unions and the govt. 3. Government : The govt. or state exerts an important influence on IR through such measures as providing employment, intervening in working relationships and regulating wages, bonus and working conditions through various laws relating to labour. The govt. keeps an eye on both the trade union and employers organisations to regulate their behaviour in the interest of the nation.

13. Approaches to Industrial Relation Everything you need to know about the approaches to industrial relations.  Industrial relations refer to the collective relationship between management, employees and government in any organization. It deals with the people at work . Approaches to Industrial Relations is a comprehensive field of study, subtle as well as gross, a vast area of interactions, actions and reactions which affect not just a company or an industry, but also the economy. Industrial relations can be described as the relationship between management and employees or among employees and their organizations that characterize or grow out of employment.

14. Approach # 1. Unitary: The basic assumption in unitary approach is that everyone benefits when the focus is on common interest and promotion of harmony. IR is grounded on mutual cooperation, individual treatment of employees, teamwork, and shared goals. Workplace conflict is seen as a temporary aberration resulting from poor management of employees, or the mismatch between employees and organizational culture. This approach appears to be good in its orientation as it emphasizes employees in the organization. However, it has failed to consider different variables affecting IR within individual organizations and the total industrial sector. Various such approaches like paternalistic and philanthropic have failed because of the wrong assumptions made about the work behaviour of employees. This approach has been criticized on the basis that it is manipulative and exploitative.

15. Approach # 2. Systems: The systems approach of IR was developed by John Dunlop in 1958. He has presented a systematic theoretical orientation to the study of industrial relations. Before him, others have theorized industrial relations in terms of trade union purpose and collective bargaining but Dunlop has taken it in more comprehensive way. Therefore, he is regarded as father of industrial relations. According to Dunlop, industrial relations system is a distinctive subsystem of society on the same logical plane as an economic system. Like the economic system, it is an abstraction. There are no actors whose activity is confined solely to the industrial relations or economic sphere.

16. Approach # 3. Pluralistic: The basic emphasis of pluralistic approach is that an organization is a coalition of interested groups headed by the top management which serves the long-term needs of the organization as a whole by paying due concern to all the interest groups affected — employees, shareholders, consumers, and society. In this process, there is possibility that the management may pay insufficient heed to the needs and claims of employees, and they may unite to bring collaborative force for the acceptance of these needs and claims. Thus, the stability in IR system is the product of concessions and compromises between management and unions. The pluralistic approach assumes that labour and management have many conflicting interests, but such conflicts are not only natural but even necessary because it is only competing social forces which can constrain and check the exercise of absolute power. The role of State is quite limited in IR system and should not have excessive influence on any party to IR.

17. Approach # 4. Marxist: Like pluralistic approach, marxist approach also treats that labour and management conflict is inevitable. However, this approach differs from the earlier one so far as the cause of conflict is concerned; it ascribes that the conflict is the product of the capitalist society which is based on classes. The two classes — labour and capital — have essentially different interests in an organization, and these interests are conflicting. The objective of capital has been to enhance productivity by gaining control over the labour process. The wages of the labour are seen as a cost and, therefore, makes attempt to minimize it. Labour , being a factor of production, should be hired so long as it can generate profit.

18. Socialistic Approach: Socialistic approach considers workers’ participation in management as an important factor in the development and perfection of socialistic democracy. This ensures fullest decentralization and participation in management as multi-dimensional program for socialist construction. The economic reconstruction is based upon the nationalization of the means of production and exchange. Under Communism, state machinery is abolished and the functions of the State are taken away by the society through public organization based on mutual consent and co-operation and the compulsion element in relation to members of the society is removed. In the process of taking away powers from the state and delegating its functions to the society, workers’ participation in management is of great importance.

19. Gandhian Approach: Gandhi believed that all money and property originally belongs to society and those who are possessing it are only the trustees of the society whose duty is to increase the earning and value of the trust property. He should charge only that much from the trust property as is absolutely essential for his subsistence and honorable living. Excess of one’s income over and above one’s is a social surplus to be employed for the benefit of the society. Breach of trust is a crime and is punishable under law. Under the trusteeship theory of Gandhi certain limited property rights are admissible. The Trusteeship theory of Gandhi does not recognize the inherent, unrestricted, irresponsible and absolute right of private property. In accordance with Gandhi’s theory of trusteeship, there must be parity between the remuneration of the trustees and the workers and should normally not be more than the latter. The managerial skills of the trustees, the talents and expertise of labor were neither to be exploited nor used to sub-serve vested interests of the law.

20. Psychological Approach to Industrial Relations: The psychologists are of the view that the problems of industrial relations are deeply rooted in the perception and the attitude of local participants. The influence of individual’s perception on his behaviour has been studied by Mason Harie . He studied the behaviour of two different groups, namely, “Union leaders” and the “Executives” through a test. For the test, a photograph of an ordinary middle-aged person served as input, which both the groups were expected to rate. It is interesting to note that both the groups rated the photograph in different manner, i.e., the Union leaders referred the person in the photograph as “Manager” where the group of “Executives” saw “Union leader” in the photograph.

21. Human Relations Approach to Industrial Relations: Among all the areas of management, perhaps one of the most delicate and tricky ones is concerned with human resources management. Their handling is radically different from that of physical, material and financial resources because these are not inanimate or passive, but are composed of pulsating human beings having their own emotions, perception, attitude, personality etc. These characteristics make them complex individuals and when they interact with others, either individually or in groups, their complexity further multiplies. So when such resources are not properly managed, the problem of industrial relations surfaces which can be only managed by deciphering and managing the dynamics of human behaviour both at the individual and group level.

22. Approach of Dr. V. V. Giri to Industrial Relations: V. V. Giri has laid stress on collective bargaining and mutual negotiations between employers and employees for the settlement of disputes. His emphasis is on “voluntary efforts of the management and the trade unions to wind up their differences through voluntary arbitration rather than through compulsory arbitration.” He observed, “There should be a bipartite machinery in every industry and every unit of the industry to settle differences from time to time with the active encouragement of government. Outside interference should not encroach upon industrial peace.”

23. Dunlop’s Approach: John T.Dunlop in his book on ‘Industrial Relations System (1958)’ presented an analytical framework of industrial relations. The purpose of his presentation was to provide tools of analysis to interpret and to gain understanding of the widest possible range of industrial facts and practices. He presented industrial relations system and contextual factors. Actors of industrial relations include workers at all levels of an enterprise and their associations specialized government and private agencies and employers and their associations. The rules include the regulations and laws that govern the relationship among the three actors. The ideology is a Philosophy or a systematized body of beliefs and sentiments held by the actors.

24. ILO: International Labour Organization The International Labor Organization (ILO) is devoted to promoting social justice and internationally recognized human and labour rights, pursuing its founding mission that labour peace is essential to prosperity. Today, the ILO helps advance the creation of decent work and the economic and working conditions that give working people and business people a stake in lasting peace, prosperity and progress. The ILO was created in 1919, as part of the Treaty of Versailles that ended World War I, to reflect the belief that universal and lasting peace can be accomplished only if it’s based on social justice. In 1946, the ILO became a specialized agency of the United Nations.Its unique tripartite structure gives an equal voice to workers, employers and governments providing a unique platform for promoting decent work for all women and men.

25. International labour organisation Definition: The International Labour Organization is the UN specialized agency which seeks the promotion of social justice and internationally recognized human and labour rights. The ILO formulates international labour standards in the form of Conventions and Recommendations setting minimum standards of basic labour rights: freedom of association, the right to organize, collective bargaining, abolition of forced labour , equality of opportunity and treatment, and other standards regulating conditions across the entire spectrum of work related issues.

26. It provides technical assistance primarily in the fields of: • vocational training and vocational rehabilitation; • employment policy; • labour administration; • labour law and industrial relations; • working conditions; • management development; • cooperatives; • social security; • labour statistics and occupational safety and health. It promotes the development of independent employers' and workers' organizations and provides training and advisory services to those organizations. Within the UN system, the ILO has a unique tripartite structure with workers and employers participating as equal partners with governments in the work of its governing organs.

27. OBJECTIVES OF ILO Four strategic objectives at the heart of the Decent Work agenda Set and promote standards and fundamental principles and rights at work  Create greater opportunities for women and men to decent employment and income  Enhance the coverage and effectiveness of social protection for all  Strengthen tripartism and social dialogue  

28. ILO Structure India is a founder member of the International Labour Organization, which came into existence in 1919. At present the ILO has  187 Members . A unique feature of the ILO is its tripartite character. The membership of the ILO ensures the growth of tripartite system in the Member countries. At every level in the Organization, Governments are associated with the two other social partners, namely the workers and employers. All the three groups are represented on almost all the deliberative organs of the ILO and share responsibility in conducting its work. The three organs of the ILO are: I nternational Labour Conferences: - General Assembly of the ILO – Meets every year in the month of June. Governing Body: - Executive Council of the ILO. Meets three times in a year in the months of March, June and November. International Labour Office: - A permanent secretariat.

29. INTERNATIONAL LABOUR CONFERENCE Except for the interruption caused by the Second World War, the International Labour Conference (ILC) has continued, since its first session in 1919 to meet at least once a year. The Conference, assisted by the Governing Body, adopts biennial programme and budget, adopts International Labour Standards in the form of Conventions and Recommendations and provides a forum for discussing social, economic and labour related issues. India has regularly and actively participated in the Conference through its tripartite delegations. GOVERNING BODY The Governing Body of the ILO is the executive wing of the Organization. It is also tripartite in character. Since 1922 India has been holding a non-elective seat on the Governing Body as one of the 10 countries of chief industrial importance. Indian employers and workers’ representatives have been elected as Members of the Governing Body from time to time.

30. THE INTERNATIONAL LABOUR OFFICE The International Labour Office, Geneva provides the Secretariat for all Conferences and other meetings and is responsible for the day-to-day implementation of decisions taken by the Conference, Governing Body etc. Indians have held positions of importance in the International Labour Office. INTERNATIONAL LABOUR STANDARDS - ILO CONVENTIONS The principal means of action in the ILO is the setting up the International Labour Standards in the form of Conventions and Recommendations. Conventions are international treaties and are instruments, which create legally binding obligations on the countries that ratify them. Recommendations are non-binding and set out guidelines orienting national policies and actions.

31. Role Of International Labour Organization Its activities are directed by the Director-General and the ILO’s  Governing Body , which includes representatives from member states, workers’ and employers’ groups. Decent Work Agenda As part of its mission, the ILO aims to achieve decent work for all by promoting social dialogue, social protection and employment creation, as well as respect for international labour standards. The ILO provides technical support to more than 100 countries to help achieve these aims, with the support of development partners. International labour standards The ILO sets international labour standards with  Conventions , which are ratified by member states, or  Recommendations , which are non-binding.

32. ILO Declaration on Fundamental Principles and Rights at Work Adopted in 1998, the Declaration commits member states to respect and promote eight fundamental principles and rights in four categories, whether or not they have ratified the relevant Conventions. They are: freedom of association and the right to collective bargaining (Conventions 87 and 98) the elimination of forced or compulsory labour (No. 29 and No. 105) the abolition of child labour (Conventions No. 138 and No. 182) the elimination of discrimination in respect of employment and occupation (Conventions No. 100 and No. 111)

33. Trade unions at the ILO Worker group representation is drawn from national trade union confederations, so trade unions play a crucial role in developing policy at the ILO. The Bureau for Workers' Activities (ACTRAV) at the secretariat is dedicated to strengthening independent and democratic trade unions so they can better defend workers’ rights and interests. The ILO’s supervisory role The ILO monitors the implementation of ILO Conventions ratified by member states. This is done through: The Committee of Experts on the Application of Conventions and Recommendations The International Labour Conference’s Tripartite Committee on the Application of Conventions and Recommendations Member states are also required to send reports on the progress of the implementation of the Conventions they have ratified. Complaints Complaints can be filed against member states for not complying with ILO Conventions they have ratified. Complaints can be from another member state which has signed the same Convention, a delegate to the International Labour Conference or the ILO’s own Governing Body.   Trade unions  use the complaint procedure  and the International Labour Conference to bring attention to labour and workers’ rights violations in member states.

34. The benefits/contribution of International Labour Standards A path to full and productive employment and decent work for all: The 2030 goals the international community recognized that “ labour is not a commodity”. Labour is not an inanimate product, like an apple or a television set, that can be negotiated for the highest profit or the lowest price. Work is part of everyone’s daily life and is crucial to a person’s dignity, well-being and development as a human being. Economic development should include the creation of jobs and working conditions in which people can work in freedom, safety and dignity. 

35. An international legal framework for fair and stable globalization Achieving the goal of decent work in the globalized economy requires action at the international level. The world community is responding to this challenge in part by developing international legal instruments on trade, finance, the environment, human rights and labour . The ILO contributes to this legal framework by elaborating and promoting international labour standards aimed at making sure that economic growth and development go hand-in-hand with the creation of decent work. A level playing field An international legal framework on social standards ensures a level playing field in the global economy. It helps governments and employers to avoid the temptation of lowering labour standards in the hope that this could give them a greater comparative advantage in inter- national trade.

36. A means of improving economic performance International labour standards have been sometimes perceived as being costly and therefore hindering economic development. However, a growing body of research has indicated that compliance with international labour standards is often accompanied by improvements in productivity and economic performance. A safety net in times of economic crisis Even fast-growing economies with high-skilled workers can experience unforeseen economic downturns. The Asian financial crisis of 1997, the 2000 dot-com bubble burst and the 2008 financial and economic crisis showed how decades of economic growth can be undone by dramatic currency devaluations or falling market prices.

37. A strategy for reducing poverty Economic development has always depended on the acceptance of rules. Legislation and functioning legal institutions ensure property rights, the enforcement of contracts, respect for procedure and protection from crime – all legal elements of good governance without which no economy can operate. A market governed by a fair set of rules and institutions is more efficient and brings benefit to everyone. The sum of international experience and knowledge International labour standards are the result of discussions among governments, employers and workers, in consultation with experts from around the world. They represent the international consensus on how a particular labour problem could be addressed at the global level and reflect knowledge and experience from all corners of the world.

38. Industrial Peace A state in industrial relations in which both  employer  and  employees  abstain from industrial action, such as  strikes  and  lockouts . Human relations components include negotiation, emotional intelligence, multitasking, and communication, while measures for industrial peace and harmony include  better workplace, trust and confidence, employee activities and royalty, and increased motivation . Industrial peace presupposes the absence of any type of industrial strife. Permanent industrial peace and harmony in any plant and unit is a must for increased production and healthy relationship between the workers and the employers. Such peace is established by the following mechanisms:

39. (a) Machinery for the prevention and settlement of industrial disputes in the form of : ( i ) legislative and administrative enactment—like that of the Trade Unions Act, the Industrial Disputes Act, the Industrial Employment (Standing Orders) Act ; (ii) Works Committees and Joint Management Councils ; (iii) Conciliation Officers and Boards of Conciliation ; (iv) Labour Courts, Industrial Tribunals, National Tribunals, Courts of Enquiry ; (v) Provision for voluntary arbitration. (b) Provision of bipartite and tripartite forums for the settlement of disputes. These forums act through Code of Discipline in Industry, Code of Efficiency and Welfare, Model Standing Orders, Grievance Procedure and granting of voluntary recognition to trade 'unions by the employers.

40. Indicators of Industrial Peace And Harmony 1.Ensure a better workplace culture : The Culture of an organization is what defines it. Employees and job seekers alike want to work for companies that have a positive work culture. Trusting your colleagues, rewarding employees for their efforts, and stepping out to support employees in difficulty are all examples of good work culture. Improves the Trust Confidence: Fostering trust and confidence in the workplace involves a lot of efforts on the part of both the employers and employees. Its reasonable to compare it to a puzzle, with solid employee relations as the most important piece. Positive employees interactions plant the roots of workplace trust and confidence. As a result, the majority of companies employ an employee relations manager. These executives are in charge of keeping the company’s employees relations activities on track.

41. Heightened Employee’s Loyalty: Employees are more likely to abandon their employers than their employment. If they believe the work culture is unfavorable, most people are not afraid to change jobs. When companies fail to stand up for stronger ties with their employees, this is the most prevalent result. Ignoring opportunities to improve employee relation costs employer not just money, but its also damage their brand image, preventing new talent from entering the workforce. Increased Motivation : Employees that have good working relationships are more inclined to give it their all and put in extra effort. Maintaining healthy relationships with your employees includes more than just effective communication: it also entails recognizing and acknowledging their contributions at work . Employees like it when their superiors compliment them because it enhances their motivation. Employees who are motivated become excellent team members. Employees who are more motivated are less likely to experience burnout.