1. INTRODUCTION TO IR

Introduction to
Industrial Relations
Lecture 1
Presented,
Sommy T.
Meaning & Concept
The term “Industrial Relations” is comprised 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.”
Meaning & Concept
• The term industrial relations explains the relationship between
employees and management which stem directly or indirectly
from union-employer relationship.
• Industrial relations are the relationships between employees and

employers within the organizational settings.
• 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.
• The term industrial relations has a broad as well as a narrow

Definitions
The Industrial Relation relations also called as labor -
management, employee employers relations.
1) “Employer-employee relationships that are covered

specifically under collective bargaining and industrial
relation laws”.
2) “Concerned with the systems, rules and procedures

used by unions & employers to determine the
reward for effort & other conditions of employment.”
OBJECTIVES OF IR
• Employee empowerment: provide an opportunity
to the workers to participate in management and
decision making process.
• Productivity: raise productivity in the

organization to curb the employee turnover and
absenteeism.
• Bargaining capacity: to improve the bargaining

capacity of the workers through trade unions.
• Discipline: to ensure discipline in the

organization and in the industry.
OBJECTIVES OF IR
• Labor-management interest: to safeguard the
interests of the labor and the management by
preventing one of the players from getting a
strong hold over the other.
• Mutual cooperation: to develop & Secure mutual

understanding & good relationships among all the
players in the industrial set-up.
• Resolve and preventing industrial conflict: to

maintain industrial peace & harmony by
preventing industrial conflicts.
OBJECTIVES OF IR
• Economic condition: improvement of economic
conditions of workers.
• Standard of living: to improve the standard of

living of the average worker by providing basic
and standard amenities.
• Basic framework: to provide a basic framework

for the management & the employees to resolve
their differences.
Approaches to IR
There are mainly three approaches to IR
1. Unitary approach
2. Pluralistic Approach
3. Marxist Approach
4. Systems Approach
1.Unitary Approach
IR is grounded in mutual co-operation, individual
treatment, team work and shared goals.
• Union co-operate with the mgt. & the mgt.’s right
to manage
• Assumption: Common interest & promotion of

harmony
• No strikes are there.
• It's a reactive IR strategy.
• They seek direct negotiations with employees.

2.Pluralistic Approach
• It perceives:
• Org. as a coalitions of competing interest..
• Stability in IR as the product of concessions and
compromises between mgt. & unions.
• Conflict between Mgt. and workers is
understood as
inevitable.
• Conflict is viewed as conducive for innovation
and
growth.
• Strong union is necessary.
3.Marxist Approach
Regard conflict as Pluralists…
• Marxists see conflict as a product of the
capitalist society.
• Conflict arises due to the division in the society

between those
who own resources and those who have only
labor to offer.
• For Marxist all strikes are political.
• He regard state intervention via legislation &

the creation of
4.Systems approach
• The system approach was developed
by Dunlop of Harvard University in
1958.
• According to this approach,
individuals are part of an ongoing but
independent social system.
• The behavior, actions and role of the
individuals are shaped by the cultures
of the society.
• The three elements of the system
approach are input, process and
Systems approach
• The institutions, the value
system and other characteristics
of the society influence the
process and determine the
outcome or response of the
individuals. The basis of this
theory is that group cohesiveness
is provided by the common
ideology shaped by the societal
Dunlop’s Systems
Approach
INPUTS
Actors PROCESSES
(Employees, Bargaining
Employers,
State)
Conciliation OUTP
Context Arbitration UT
(Tech, Market, Adjudication
Power Legislation Rules
Indeology)
Feedback
Causes of poor IR
The main reasons are as follows:
 An attitude of contempt towards the workers on the
part of the management.
 Inadequate fixation of wages or improper wages.
 Unhealthy working conditions at the workplace.
 Desire of workers for higher bonus, wages or daily
allowances.
 Desire of employers to pay as little as possible to its
workers.
 Lack of human relations skills on the part of
supervisors and managers.
Causes of poor IR
 Inadequate welfare facilities.
 Dispute on sharing the gains of productivity.
 Retrenchment, dismissal and lockouts by the
management.
 Strikes by the workers.
 Inter-union rivals.
General economic and political environment such as
rising prices, strikes by others and general indiscipline
having their effect on the employees attitudes.
 Mental inertia on the part of the management.
Factors Influencing Investment
Orientation
1–
22
3 Actors of IR
1
EMPLOY
EES
2
STATE
3
EMPLOY
ER
Role of Three Actors to
Role of IR
EMPLOYEES
To redress the bargaining advantage on one-to-
one basis

To secure better terms and conditions for their
members
 To obtain improved status for the worker in

his/her work
 To increase implementation of democratic way of

decision making at various levels
IR
Role of EMPLOYERS
Contd.
 Creating and sustaining employee motivation
 Ensuring commitment from employees
 Negotiating terms and conditions of employment

with TU leaders
 Sharing decision making with employees

IR
Role of STATE
 Labor policies
 Labor laws
 Industrial tribunals
 Wage boards
 Industrial relations policy

“You don’t build a business, you build people
and then people build the business”- Zig Ziglar

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Introduction to

‘Industry’ and ‘Relations’

• Industrial relations are the relationships between employees and

• The relationships which arise at and out of the workplace

• The term industrial relations has a broad as well as a narrow

1) “Employer-employee relationships that are covered

2) “Concerned with the systems, rules and procedures

• Productivity: raise productivity in the

• Bargaining capacity: to improve the bargaining

• Discipline: to ensure discipline in the

• Mutual cooperation: to develop & Secure mutual

• Resolve and preventing industrial conflict: to

• Standard of living: to improve the standard of

• Basic framework: to provide a basic framework

• Assumption: Common interest & promotion of

• No strikes are there.

• It's a reactive IR strategy.

• They seek direct negotiations with employees.

• Conflict arises due to the division in the society

• For Marxist all strikes are political.

• He regard state intervention via legislation &

 To obtain improved status for the worker in

 To increase implementation of democratic way of

 Creating and sustaining employee motivation

 Ensuring commitment from employees

 Negotiating terms and conditions of employment

 Sharing decision making with employees

 Industrial relations policy

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