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Industrial Relations

Industrial Relations

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Industrial Relations

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  1. Industrial Relations

  2. IR • IR is concerned with the relationship between management and workers and the role of regulatory mechanism in resolving any industrial dispute 2

  3. Approaches To IR 3

  4. Parties To IR 4

  5. Parties To IR (Contd.) Source: National Sample Survey Organisation and Directorate General of Employment and Training, Ministry of Labour, Government of India Number of Employees Source: Government of India, 2001 Sector-wise Share of Employment • Employees • Commitment to Industry • Protective Legislation • Status of the Worker • Employment Pattern 5

  6. Parties To IR (Contd.) • Trade Unions • Unions have broad objectives which are: • bargaining advantage • To secure improved terms and conditions of employment • To obtain improved status for the worker in his or her work • To increase the extent to which unions can exercise democratic control over decisions 6

  7. Parties To IR (Contd.) • Employers • Employers too, are directly involved in any dispute between them and the employees • The management is known to adopt dubious means to forego a strike, call off a strike, or tone down union demands • In general, managers tend to see employee relations in terms of the following activities: • Creating and maintaining employee motivation • Obtaining commitment from the workforce • Establishing mutually beneficial channels of communication throughout the organisation • Achieving high levels of efficiency • Negotiating terms and conditions of employment with employee representatives • Sharing decision making with employees • Engaging structure with trade unions 7

  8. Parties To IR (Contd.) • Employers’ Associations • The major objectives of employers’ associations include: • Representing employers in collective bargaining. • Developing machinery for the avoidance of disputes • Providing information on employee relations and to give advice 8

  9. Parties To IR (Contd.) • Judiciary and Employee Relations • The authority of the courts to settle legal disputes 9

  10. Parties To IR (Contd.) • HR Function • It is the HR professional who is accountable for industrial harmony • It is a paradox that when things are going good, credit is not given to the HR team but fingers are pointed out at them in times of crises • An HR professional needs to play the role of a change agent, an administration expert. • HR team like its counterparts in finance, operations or marketing is equally concerned about the performance of the organisation 10

  11. Parties To IR (Contd.) • ILO and NLC • ILO’s standards with regard to industrial relations include: • Right of Association (Agriculture)(1921) • Freedom of Association and Protection of the Right to Organise (1948) • Right to Organise and Collective Bargaining (1949) • Collective Bargaining (1981) 11

  12. IR Strategy • Since employer-employee relations are usually presumed to be satisfactory until they get out of hand, managers, rarely, feel the need to act before the trouble breaks out • But the reactive strategy cannot continue for long • Where organisations have proactive strategies, the goal should be to ensure that corporate objectives can be achieved by gaining the maximum amount of co-operation from employees and by minimising the amount of industrial unrest 12

  13. IR Strategy (Contd.) • Factors Affecting Employee Relations Strategy • Internal factors: • The attitudes of management to employees and unions • The attitudes of employees to management • The attitudes of employees to unions • The inevitability of the differences of opinion between management and unions • The extent to which the management can or wants to exercise absolute authority to enforce decisions affecting the interests of employees 13

  14. IR Strategy (Contd.) • Factors Affecting Employee Relations Strategy • External factors: • The militancy of the unions—nationally or locally • The effectiveness of the union and its officials • The authority and effectiveness of the employers’ association. • The extent to which bargaining is carried out • The effectiveness of any national or local procedure agreements • The employment and pay situation—nationally and locally • The legal framework within which IR exists 14

  15. IR Strategy (Contd.) • IR Decisions • A proactive IR strategy programme must cover the following decisions: • Communication • Relationships • Competence • Discipline and Conflict 15