Industrial Relations
Industrial Relations – Meaning and Definition
The term ‘Industrial Relations’ comprises ‘Industry’ and ‘relations’.
Industry means any productive activity in which an individual is
engaged. It includes- (a) primary activities like agriculture, fisheries,
plantation, forestry, horticulture, mining etc. etc. and (b) Secondary
activities like manufacturing, construction, trade, transport,
commerce, banking, communication etc.
The following points emerge from the analysis of the above
definitions:
(1) Industrial relations are the relations which are the outcome of the
’employment relationship’ in an industrial enterprise. It is, thus,
employer-employee relationship in an industry. Two parties—
employer and workmen are necessary without which such relationship
cannot exist and it is the industry which provides the setting for
industrial relations.
(2) Industrial relation is the relation in the industry created by the
diverse and complex attitudes and approaches of both management
and workers in connection with the management of the industry.
Attitude refers to the mental state of a person, approach can be the
external expression of such an attitude. Attitudes are always not
obvious and the individual himself may not always be fully conscious
of the attitudes.
Attitudes must be inferred from tone of verbal expressions or perhaps
from the individual’s overt behaviour. Attitude is the mental state of
the individual which prepares him to take a particular, (external)
approach or make him behave in a particular manner. Attitudes of
both—employer and employees influence each other and determine
natural relationship.
(3) This relationship emphasises on the process of accommodation
whereby both the parties develop skills and methods of adjusting to
and cooperating with each other.
(4) Industrial relation is not a simple relationship between the two
parties but is a set of functional interdependence involving a number
of factors, say, historical, economic social, psychological,
demographic, technological, occupational, legal and others etc. It,
therefore, requires an interdisciplinary approach for its study. In this
context, industrial relations are the relations and interactions between
management and workers and as a result of their composite attitudes
and approaches.
(5) Every industrial relation creates a complex of rules and regulations
to govern the work-place, the work- community with the main purpose
of maintaining harmonious relations between the management and
the workmen by solving their problems through the process of
collective bargaining.
Industrial Relations – Importance of IR
1. The labours today are more educated and they are aware of their
responsibilities and rights. Management has to deal with them not
merely as factors of production, but as individuals having human
dignity and self-respect. The objective is to change the traditional
views of management and labour towards each other and develop
mutual understanding and co-operation and work towards
achievement of common goal. Good industrial relations lead to
industrial peace and increase in production.
2. Joint consultation between employees and management paves the
way for industrial democracy and they contribute to the growth of the
organisation.
3. Conducive industrial relations motivate the workers to give
increased output. Problems are solved through mutual discussions,
workers’ participation, suggestion schemes, joint meeting, etc. Good
industrial relations, increase labour efficiency and productivity.
4. With increased productivity, the management is in a position to
offer financial and non- financial incentives to workers.