Approaches To Industrial Relations

1. Approaches ToIndustrial Relations Presented by Narinder Singh Under the guidance of Dr. Vaneeta Aggarwal University Business School Panjab University, Chandigarh

2. Approaches to Industrial Relations • Psychological Approach • Sociological Approach • Human Relations Approach • Gandhian Approach • System Approach • Human Resource Management Approach 2/20

3. Approaches to Industrial Relations (contd.) • The Oxford Approach • The ActionTheory Approach • The Unitary Approach • The Pluralist Approach • The Marxist/RadicalApproach • Weber’s Social Action Approach • Socio-Ethical Approach 3/20

4. Why So Many Approaches...? • The problems posed in the field of industrial relations cannot be solved within the limits of a single discipline, and hence it is bound to be inter-disciplinary in approach. • Any problem in industrial relations has to be approached on a multi-disciplinary basis, drawing from the contributions of a number of disciplines. 1/20

5. Psychological Approach • Problem of industrial relations lie in the perception and attitude of the participants. • Study by Mason Haire on the behaviour of two groups, namely, “Union leaders” and “Executives”. 4/20

6. Psychological Approach (contd.) Results of Mason Study: • The general impression about a person is radically different when he is seen as a representative of management from that of a person as a representative of labour. • The management and labour see each other as less dependable. • The management and labour see each other as inadequate in thinking regarding emotional characteristics and inter-personal relations. 5/20

7. Sociological Approach • This approach includes various sociological factors like value system, customes, norms, symbols, attitude and preception of both labour and management. • As industrialisation gets momentum, a set of new industrial-cum-social patterns emerges. These influences shape the industrial relations. • Now a days industrial relations are determined by power. 6/20

8. Human Relations Approach • Human are not inanimate or passive. • Human are very complex to understand i.e. to manage. 7/20

9. What Influences Human To Work • Style of leadership • Autocratic style • Democratic style • Motivation (satisfy the dissatisfied needs) • Physiological needs (food, water, clothing, shelter) • Safety needs (physical, finance and job security) • Social needs (belonging, affection) • Egoistic needs (self-esteem and esteem from others) 8/20

10. Gandhian Approach • Truth, Non-violence, Non-possession, Non co-operation (Satyagarah), trusteeship... • Workers’ right to strike. • Concept of equality 9/20

11. Gandhian Approach (contd.) • There is no room for conflict of interests between the capitilist and the labourers. But what IF conflicts occur...? • Should they go for strikes/lockouts...! 10/20

12. Gandhian Approach (contd.) • Two things that Gandhiji expect from workers • Awakening • Nurturing faith in their moral strength • Awareness of its existence • Unity 11/20

13. Gandhian Approach (contd.) Gandhiji advocates • Demands should be reasonable and through collective action. • Avoide strikes as far as possible. • Avoide formation of unions in philanthropic organisations. • Strikes should be the last resort only. • In case of organising a strike, workers should remain peaceful and non-violent. 12/20

14. System Approach (by John Dunlop) • Focuses on • Participants in the process • Environmental forces • Output And their inter-relationship. 13/20

15. System Approach (contd.) (Set of Ideas and Beliefs) 14/20

16. System Approach (contd.) Environmental Forces Participants Outputs • Market or Budgetary Restraints • Technology • Distribution of Power in Society Union – Management Government Rules of the Workplace 15/20

17. System Approach:Participants The main participants are • Workers and their organisations • Management and their representatives • Government agencies 16/20

18. System Approach:Environment Three types of environments • Technological characteristics of workplace (Technological sub-system) • The market or economic constraints (Economic sub-system) • The ‘locus’ and ‘balance of power’ existing in society (Political sub-system) 17/20

19. System Approach: Output Output is the result of interaction of the parties/actors of the system which is manifested in the network of rules, country’s labour policy and labour agreements etc. that facilitate a fair deal to workers. 18/20

20. Human Resource Management Approach The term, human resource management (HRM) has become increasingly used in the literature of personnel/industrial relations. The term has been applied to a diverse range of management strategies and, indeed, sometimes used simply as a more modern, and therefore more acceptable, term for personnel or industrial relations management. 19/20

21. HRM Approach (Contd.) Some of the components of HRM are (i) human resource organisation (ii) human resource planning (iii) human resource systems (iv) human resource development (v) human resource relationships (vi) human resource utilisation (vii) human resource accounting (viii) human resource audit. This approach emphasises individualism and the direct relationship between management and its employees. Quite clearly, therefore, it questions the collective regulation basis of traditional industrial relations. 20/20

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24. EVOLUTION OF INDUSTRIALRELATION Presented By Puneet Aggarwal Under Guidence Dr. Vaneeta Aggarwal

25. EVOLUTION OF INDUSTRIAL SYSTEM • Labor management problems arise when gigantic industrial empires of Financial tycoons came into existence during early nineteen century. • This problem become major study only when large aggregations of people came to work under one roof. • There are various evolutionary phases to understand the issues and problems associated with industrial relation.

26. Various stages of Industrial system • Agrarian Economy Stage • Handicrafts stage • Cottage or Putting-out Stage • factory or the Industrial Capitalism Stage

27. Agrarian Economy Stage • It developed during the Middle Ages and brought about a change in the views on property. There arose a class of propertied individuals along with a class of propertyless worker. • Under this system employees were treated as slaves. Employee-Employer relationship was that of master- servant type. • Government did not any control over employment relationship.

28. Handicrafts Stage • This system developed because of the growth of towns and cities, increase in trade and commerce. • The workers owned factors of production, worked with there own tools and with the help of family members. • They sold goods directly in the market. • Sometimes the master craftman also underlook,to teach his craft to some young men. These artisans began their careers as apperentics.

29. Cottage or putting-out Stage • With the development of economic system, and that of the steam and power, some individuals became employees in the new industrial units. • Master craftmen buy raw material and than supply it and also provide finance to the craftmen . • They were paid on the basis of piece rate system.

30. Factory or the Industrial Capitalism Stage • With the invention and manufacturing of power driven machines in the late eighteenth and early and nineteenth century, the process developed further. • This give rise to a system that is known all over the world as INDUSTRIAL REVOLUTION. • Under this system child and women labor were employed for long time. • With more specialized task relation between the workers and employees become impersonal.

31. Under factory system workers were brought together to work under one roof and strict discipline was maintained during the process of production. Workers were economically dependent on the employers for thier livelihood. Human element in the production process disappeared as the employer had no personal ties with workers. The maximisation of profit was the sole factor which dominate the FACTORY SYSTEM.

32. OCCUPATION IN ANCIENT INDIA • INDIA was greatly advanced in the field of Industry in the Ancient Times, as evidenced from the Ancient Literature. • Dyeing of leather, weaving of wollen cloths, making of containers to hold liquids, making chariots for war, boats and ships etc. • People engaged in agriculture are known. Kinasa-ploughman, Gopa and Gopala-herdsmen, Vapa-saver of grains. • For craftsmen following terms are used.

33. Kamara-smith, Taksana-carpenter, Dhanuskara-bow maker, Vidalkari-basket maker. • In addition to this some other are Napita-barbar, Dhivara-fisherman, Grapha-doorkeeper, Anuksattr-servant, Payu- guard. • The caste system had great influence on the development and progress of the various industries and occupations. • A Brahmin earn his livelihood by teaching, Kshatriya is fighting class, The Vaishya specialized in cultivation and Shudra had no right , his main occupation being service.

34. INDUSTRIAL RELATIONS • One of the factors necessary for happiness in a group is good mutual relations. • During Ancient Times people in rural community were able to solve and settle disputes themselves. • Every effort was made to improve the relations between capitalists and labor. • This sytem prevailed under HINDU GOVERNMENT.

35. “In Mahabharat it is mentioned that a powerful person exploits the weak one, just as big fishes make a meal of small one.”

36. Early British Rule • In India modern Industries were set in middle nineteens. • The trading community was very small. Isolated entrepreneurs did launch industries like cotton, or iron, steel but these could not stand competition and pressure of British capitalism. • The workers were mostlly employed under subversive conditions. • The passing of the Factories act in 1881 awakened workers toward concerted approach.

37. First World War to Pre-Independence Period • World war1 created a period of boom for employees. This economic distress brought workers together and a organised working class movement began in the country. • The Trade Union Act(1926) and The Trade Dispute Act(1917) provide significant protection to workers. • During Second world war employers made enormous profits. Workers demanded share out of it. They were given but not in proportion as increase in price.

38. Year following the war was most disturbed years from the point of view of industrial relations. • There was a considerable increase in the number of trade union and their membership. • In 1946, the Industrial Employment Act was passed to regulate terms and condition of service and In 1947, the INTUC was formed.

39. Independence and After • After Independence, in the interest of the national economy, it was considered necessary to stop strikes. • The Minimum Wages Act, the Factories Act, and the Employees’ State Insurance Act were enacted in 1948. • The right of an individual worker came to be better safeguarded when the Industrial Dispute Act was amended in 1947.

40. Independence....(Contd.) • In 1969 a report of the National Commission on Labour, a growing concern was shown on industrial relations. • During emergency(1975 and 1976) the industrial relations was quite peaceful. • During 1991 the countrys industrial relations are in doldrum. • The Indian Industrial Relations System is slowely changing over time.

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