In short, the term, industrial relations means the relations between employees and management arising out of day to day work in industry. To boost the discipline and morale of workers. Free resources to assist you with your university studies! WebA conclusion is intended to produce some kind of thought construction. Managers who take this view regard themselves as the only legitimate source of power and authority which they value and protect. 2. (h) Production and productivity improves. Avoid Conflicts Between Management And Union: Industrial relations minimise issues between unions and management. Promotion of Industrial Harmony Industrial democracy is practised by various workers participation schemes like collective bargaining, works committee, quality circle, functional committee, board of directors scheme, joint consultation and employee stock option plans. The term industrial relation may be conceptualised as relations between labour and management, For example, following the approach of the human relations and neo-human relations schools, workers have basic needs that need to be met. The importance of the human factor in an industrial organisation is beyond question. It results in industrial peace which is essential for the countries, particularly for India, where the economy is being geared in a planned way to ameliorate the lot of the masses. Harmonious relationship is necessary for both employers and employees to safeguard the interests of the both the parties of the production. 5. However, according to Rensis Likert, when employees become involved in solving work-related problems and making decisions, they become involved in what they are doing and committed to the achievement of successful outcomes (Likert, 1961). Webhad stronger labour movements and more developed systems of industrial relations in terms of collective bargaining and industrial regulation. The conclusion of the Industrial Revolution was that it was a great boon to the entire human race. Reduced industrial dispute, industrial unrest, strike, lock outs can be avoided through good industrial relation. This can have a negative impact on economic development and social stability. Unions divert their activities from fighting and belligerence to increasing the size of the distribution-cake and to make their members more informed (Workers education) on vital issues concerning them. State acts as regulator, facilitator in shaping IRs pattern in industry. The healthy industrial relations are key to the progress and success. Good IR helps to run an industry effectively and successfully. Web481. made up of three main actors that act as a wheel that takes industrial relation. 1. So, there is the impact of industrial relations not only on the economy of a country but also on its society and culture. Viewing every problem seriously and resorting to manipulative style of industrial relations which emphasize the need to keep labour in check by floating stooge unions, buying up union leaders, and striking clandestine deals with powerful politicians do no good to managers or to the organizations they represent. To encourage collective bargaining as a means of self-regulation. Industrial relations incorporate both individual relations and collective relations. All the three factors are very much required for the smooth and better economic development of a country. Industrial relations refer to the ways in which employees and employers relate within an organization. v. The relationship is based on economic, non-economic issues arising out of terms and conditions of employment as also practices not covered under the terms. vii. 10, No. The relationship between management and employees within the organisation within the organisational settings is defined by industrial relations. One side is much stronger than the other, labor relations and negotiations are difficult, and the outcome of consultations is not good for cooperation. Indeed, you should refer to your thesis statement in your conclusion. They also clog the progress and development of the nation. For example, at the Alwar plant of Eicher Tractors, productivity went up from 32 per cent between 1994 and 1996 to 38 per cent in 1997. The importance of the human factor in an industrial organisation is beyond question. In a broader sense, the term industrial relations refers to the relation between various unions, state and union, and between employers and government. 2. Avoid Conflicts Between Management And Union. Every worker feels that he is a co-owner of the gains of industry. Mental Revolution 7. Good Industrial relationship removes dissatisfaction among the workers. Unions gain more strength and vitality. WebIndustrial relation is about the relationship between employers and employees. As a result of these assumptions, it is assumed that the natural state of the organisation is productivity and harmony, in the course set by management. 2. Good industrial relations are necessary for the following reasons: 1. In an effort to fully engage the reader in her area of study, she proposes suggestions for future research. Benefits to Workers Harmonious industrial relations climate ensures implementation of welfare measures, better service terms, better physical environment, implementation of social security schemes, higher wages, optimum work load, bonus, fringe benefits, etc. In industrial relations, real conflicts more often than not, arise between employers and employees. 9 Conclusion Conclusion. An increase in the morale of workers reduces per unit cost of production too. Hence, one of the main goals of the Five Year Plans in India has been rapid industrialization and more employment in secondary and tertiary industries. In other cases, management may have been tardy in removing areas of worker inefficiency: Taylor and scientific management, for example, were concerned with removing the possibility of poor performance by redesigning the work process. Industrial relations have moral dimensions too. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Industrial relations safeguards the interest of employees. Course Hero is not sponsored or endorsed by any college or university. Industrial relations are human relations in industry. No plagiarism, guaranteed! On the other hand, the term relations refers to the relationship, which exists within the industry between the management and the employees. Much of the success or failure of Indian Five Year Plans would be dependent on the maintenance of harmonious employee-employer relations. The two main schools within the HRM approach are 1) soft HRM 2) hard HRM. Weborganizational priorities in todays business, moving towards a new framework of industrial relations system, changing role of actors of industrial relations ( employer, employees and government ) in the changed situation for maintaining peace and harmony in emerging new employment relations and finally conclusion with references. According to Dale Yoder, Industrial relations incorporate policies related to recruitment, selection, training of workers, personnel management, and collective bargaining. According to the International Labour Organisation (ILO), industrial relations incorporate the relations between state and employers and relations between trade unions and employers associations. Neo-institutionalism is a set of rules which followed by the employees of the organization so that everyone follows and committed to the rules which helps to create value. This leads to increase in production in the organisation. In the performance of this function, support is rendered by different managers and subordinates. With the growth of the concept of scientific development, the government strengthens the way workers rights are protected. International labour organization (ILO), (2019), resources/national-labour-law-profiles/WCMS_158904/lang--en/index.htm, Ono, H. (2010). In the case of industries, effective communication supports industrial relations management in organisations with a proper hierarchical system. Modern Human Resource Management is widely viewed as Unitary Perspective. However, avoid repeating the thesis verbatim. Complete harmony between labour and capital may be a dream but quite a considerable amount of unrest and discontent among workers can be removed through efficient handling of industrial relations. Now you know what should be in your conclusion. In addition, the state uses direct and indirect participation, active and passive interventions, and pre-conflict and post-conflict interventions to coordinate and encourage employers and workers to reach an agreement. Its time to discuss what shouldnt be there! They consider the negotiation process as an educational opportunity, a chance both to learn and to teach. The task of labour is to fit within this framework. The main components of industrial relations include labour relations, relations between employees and executives, human resource management practices, trade union activities, collective bargaining, and compliances with regulatory and statutory requirements. Industrial relations play a vital part in facilitating the process of dispute resolution in organizations. High Morale: Good industrial relations enhance the morale of the employees and motivate the workers to work more efficiently. Different authors and experts have expressed their views on the concept of industrial relations. The First Five Year Plan has clearly demonstrated the fact that, as economy organized for planned production and distribution, aiming at the realization of social justice and the welfare of masses can function effectively only in an atmosphere of industrial peace. Lifetime employment in Japan: Concepts and, Journal of the Japanese and International Economies. Following are the significant features of industrial relations: Industrial relations are the result of employment relationships in industrial enterprises. Provision of training and education program. Here, managers may allow and actively foster freedom of expression and the development of groups, which establish their own norms and elect their own informal leaders. This promotes economic growth and development. the South Pacific: Samoa, Tonga, the Cook Islands, Kiribati, Solomon Islands, Vanuatu and the Fiji Islands. WebYou can use this free online tool to write a conclusion for an essay and any other content. In a modern organisation, the industrial relations functions are performed by the Industrial Relations Department. As the custodian of the nation, the government plays an impartial role as it exerts influence and acts as a mediator in industrial relations. Thus, IR paves way for smooth relation between the traditional warring groups. Industrial relations are the key for increased productivity in industrial establishments. vi. The most important benefit of industrial relations is that this ensures continuity of production. Good industrial relations improve the morale of the employees. Pluralism sees the organisation as an amalgamation of separate homogeneous groups within some kind of dynamic equilibrium. Definitions of Industrial Relations 1.1.10 Evolution of Industrial Relations 1.1.11 Conclusion 1.1.12 Self Assessment Questions 1.1.13 References 1.1.1.INTRODUCTION: Industrial relations pose one of the most delicate and complex problems to modern industrial society. It is also viewed that one of the essential steps for building up an economically free and self-sustaining India is, large- scale industrialization at a rapid and steady growth. What is the Importance of Industrial Relations? Hence, one of the main goals of the Five Year Plans in India has been rapid industrialisation and more employment in secondary and tertiary industries. In developing a theory of industrial relations various approaches or perspectives have been identified. Account Disable 12. The costs of activity-based management. It also aims at the development of a sense of mutual confidence, dependence and respect and at the same time encouraging them to come to closer to each other for removing misunderstandings, redressing grievances, if any, in a peaceful atmosphere and with open mind and fostering industrial pursuits for mutual benefits and social progress. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. Everything you need to know about the importance of industrial relations. It is unethical on the part of any management to take advantage of the helplessness of workers and exploit them. The main object of industrial relation is a complete mental revolution of workers and employees. Web1Weiss and Schmidt, Labour Law and Industrial Relations in Germany, pp. Unitarism emphasis the organization as a coherent team united by a common purpose. 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