2. CONCPT & EVALUATION OF IRM
1. Concept & Evaluation
2. Background of industrial relations in India.
3. Influencing factors of IR in enterprise and the
4. Economic, Social and Political environments.
5. employment Structure , Social Partnership.
6. Wider approaches to industrial relations
3. LEARNING OBJECTIVES
To understand the significance of
industrial relations in India.
To aware the Influencing factors and
consequences of IR in enterprises.
To understand the Employment
Structure of India and approaches to
To review the students knowledge
thought questions and an activity.
4. INDUSTRIAL RELATIONS
• Industrial relations has become one of the most
delicate and complex problems of modern
industrial society. Industrial progress is
impossible without cooperation of labors and
harmonious relationships. Therefore, it is in the
interest of all to create and maintain good
relations between employees (labor) and
5. CONCEPT & MEANING
• The term ‘Industrial Relations’ comprises 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.” The
term industrial relations explains the
relationship between employees and
management which stem directly or indirectly
from union-employer relationship.
• "Industrial Relation is an art, the art of living together for
purposes of production."
- J. Henry Richardson
• Industrial relations deal with either relationship between
the state and employees and workers organizations or
the relations between the occupational organizations
– ILO (international labour organization).
• As per Dale Yoder Industrial Relations refers to the
relationship between management and employees, or
employees and their organization, which arise out of
BASIC CONCEPT OF INDUSTRIAL RELATIONS
• The concept of industrial relations was developed with
the industrial revolution.
• Prior to this it was considered master and servant
• The workers were considered and treated like any other
commodity which could be easily purchased and
• Wages and conditions of services were poor and this
situation was not only in India but also in England and
other European countries.
• The term Industrial Relations comprise Industry and
relations. Industry means and productive activity in which
and individual is engaged and relations mean the relation
that exists in the industry between employer and its
8. ANALYSIS OF INDUSTRIAL
• Industrial relations are the relations which are the
outcome of the employment relationship in an industrial
• Every industrial relations system creates a complex of
rules and regulations to govern the work place and work
• The main purpose of this complex is to maintain
harmonious relations between labour and management
by solving their problems through collective bargaining.
• The government/state shapes industrial relations with the
help of law, rules, agreements, and awards of the courts.
9. Evolution of Industrial
• evolution of industrial relations in India began a long time
ago. The caste system greatly influenced the ancient
industries and their development. Due to successive
foreign invasions in India, the living conditions of slave
and artesian couldn't be differentiated. Furthermore,
under the autocratic regime of Muslim rulers, the
conditions of employees worsened. Wages were not
guaranteed, the living conditions of workers were harsh,
and there was no proper management. The coming of
the British didn't improve the working conditions. After
some time, however, most Indian industries were
modeled after the British system of business, and this led
to growth in various sectors.
10. INDUSTRIAL RELATIONS
UNDER BRITISH RULE
• During British rule, India was expected to be a colonial
market for British goods up until a cotton mill was
established in Mumbai in 1853 and a jute mill was
established in Kolkatta in 1955. The working conditions of
workers, however, were still very harsh with low pay, and
this gave rise to various disputes involving the
management and employees. On the other hand, Tata
Iron and Steel industry was also established in
Jamshedpur in 1911. While there was great demand of
iron and steel before and during the First World War, the
working conditions of workers hadn't improved. Hence,
the Factories Act of 1881 was established, and it granted
workers certain rights.
11. INDUSTRIAL RELATIONS IN
FIRST WORLD WAR
• The First World War was an opportunity in disguise for
local factories in India. Prices of virtually all products
went up and profits soared, however, wages of lower
employees were still the same. There were various
strikes and disputes between management and
employees. During this time, the Workmen's
Compensation Act (1923), the Trade Union Act (1926),
and the Trade Disputes Act (1917) were established.
While the wages of employees remained the same, they
were given a certain share of profits made by their hiring
industry. Strikes, however, were sometimes prohibited
under the Emergency Rules. The years following World
War II involved the most workers' upheaval, and saw the
establishment of Industrial Employment Act (1946) and
Industrial Disputes Act (1947).
• The post-independence era saw a developing
relation between industry and labor. A
conference called the Industrial Truce
Resolution took place in 1947, and foresaw the
establishment of the Minimum Wages Act,
Factories Act, and Employees State Insurance
Act in 1948. This ensured peace between labor
and industry. While industrial relations in India
have evolved a long way, some features of the
early system still exist today. Modern industrial
relations are dynamic, and may integrate
industrial policies of American and British
13. BACKGROUND OF INDUSTRIAL
RELATIONS IN INDIA
THE FIRST PHASE OCCURRED FROM
this first phase was characterized by state led
industrialization that required government
guidance in labour unions. The laws formed
were biased and the concept was that the
government knew better than the workers.
16. SOCIAL PARTNERSHIP
• It is the term used for the tripartite. During the post war‐
period, Irish labour unions have been characterized by
fragmentation at the local level (with multiple unions
competing for members, industrial unrest at the local
level, and tensions between unions), but centralization at
the national level.
17. SOCIAL PARTNERSHIP
• Labour unions have been clustered into large umbrella
organizations, and the country has had a strong history of
corporatism in industrial relations.
• The three stages of “globalization” in Ireland—the
decision to embrace an open economic policy in the
1950s, Ireland's 1973 entry into the EEC, and the
deepening of European integration in the 1980s and
1990s—have generated continuous pressures on Ireland
to embrace new strategies to accommodate the
pressures of market forces.
• Ireland's response to ‘globalization’ has not involved a
disintegration of corporatist bargains or the weakening of
unions, but rather a renewed focus on social partnership
and consensus policy making in which unions have
played a distinct role.
18. SOCIAL PARTNERSHIP
• The result of this social partnership has been impressive
growth rates since 1987, but a lingering problem of
structural unemployment. To address this issue, Dublin
has committed itself to the continuation and
strengthening of corporatist bargaining, but with an
increased emphasis on addressing the problem of social
exclusion. It remains to be seen whether social
partnership mechanisms can effectively address the
problems associated with long term unemployment and‐
social exclusion, or whether Ireland is evolving toward a
bifurcated economy, characterized by expanding jobs for
skilled workers, but declining prospects for less educated‐
19. WIDER APPROACHES TO
Industrial conflicts are the results of several socio-
economic, psychological and political factors. Various
lines of thoughts have been expressed and approaches
used to explain his complex phenomenon. One observer
has stated, “An economist tries to interpret industrial
conflict in terms of impersonal markets forces and laws of
supply demand. To a politician, industrial conflict is a war
of different ideologies – perhaps a class-war. To a
psychologist, industrial conflict means the conflicting
interests, aspirations, goals, motives and perceptions of
different groups of individuals, operating within and
reacting to a given socio-economic and political
20. PSYCHOLOGICAL APPROACH
• The problems of IR have their origin in the perceptions of
the management, unions and the workers. The conflicts
between labour and management occur because every
group negatively perceives the behaviour of the other i.e.
even the honest intention of the other party so looked at
with suspicion. The problem is further aggravated by
various factors like the income, level of education,
communication, values, beliefs, customs, goals of
persons and groups, prestige, power, status, recognition,
security etc are host factors both economic and non-
economic which influence perceptions unions and
management towards each other. Industrial peace is a
result mainly of proper attitudes and perception of the two
21. SOCIOLOGICAL APPROACH
• Industry is a social world in miniature. The management
goals, workers’ attitudes, perception of change in
industry, are all, in turn, decided by broad social factors
like the culture of the institutions, customs, structural
changes, status-symbols, rationality, acceptance or
resistance to change, tolerance etc.
• the main function of an industry is economic, its social
consequences are also important such as urbanization,
social mobility, housing and transport problem in
industrial areas, disintegration of family structure, stress
and strain, etc.
• As industries develop, a new industrial-cum-social
pattern emerges, which provides general new
relationships, institutions and behavioural pattern and
new techniques of handling human resources. These do
influence the development of industrial relations
22. HUMAN RELATIONS APPROACH
• Human resources are made up of living human
beings. They want freedom of speech, of
thought of expression, of movement, etc. When
employers treat them as inanimate objects,
encroach on their expectations, throat-cuts,
conflicts and tensions arise. In fact major
problems in industrial relations arise out of a
tension which is created because of the
employer’s pressures and workers’ reactions,
protests and resistance to these pressures
through protective mechanisms in the form of
workers’ organization, associations and trade
23. LABOR MARKET
The nominal market in
which workers find paying work, employers find
willing workers, and wage rates are determined.
Labor markets may be local or national (even
international) in their scope and are made up of
smaller, interacting labor markets for
different qualifications, skills, and
geographical locations. They depend
on exchange of information between employers
and job seekers about wage rates, conditions of
employment, level of competition, and job location.
• Discuss briefly about the Concept of Industrial Relations
• Explain about Evolution and Background of industrial
Relations in India
• What are the Influencing factors of IR in enterprise and
discuss the consequences.
• Define and explain briefly Economic factors, Social
factors and Political environment factors and
• What Social Partnership discuss.
• What are the approaches to industrial relations
• What is Labor Market?
• Take an interview with industrial
relation manager working nearby
company of your place by preparing
a questionnaire on MIR and its
significance in a company.