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UNIT VII
INDUSTRIAL RELATIONS
By: Shiji K John
Background
• History of the Indian economy and its labour force in the
post independence period can be divided into 2 phases:
1. The import substitution era post-independence
(1947-1991)
2. The era of economic liberalization (after 1991)
Defining IR
• Industrial Relation can be defined, as the relation between
management and union or between representatives of employees
and representatives of employers
• Refers to all aspects of employement relations.
• Industrial Disputes Act, is same across all sectors.
System framework
Dunlop Framework
Dunlop suggested that IR can be
segmented into 4 inter-related
elements:
 Actors
 Context
 Idealogy
 Rules
Limitations
• With liberalisation and growing environmental concerns,
consumers and the community have come to play a
critical role.
• Also, Dunlop talks about roles, not people.
Approaches to IR
Psychological Approach
• It explains behaviour in relation to certain personality
aspects such as perception and attitudes.
• Certain groups of people have sterotype way of thinking.
• Bias perception cloud transaction between the labour and
the management.
Sociological Approach
• Organisations reflect societal norms, values and cultures.
• Focuses on the social factors that influence productivity of
the work group.
• factors include work stress, mobility, health, wages,
compensation packages etc.
Human Relation Approach
• Organisation believes in employees having needs, goals
and aspirations.
• Each group have their own needs and demands.
• Leadership factor also plays a major role.
• Deals with issues in an objective manner and resolves
conflicts satisfactorily.
Marxist Approach
• Introduced by Karl Marx.
• Production system is owned and motivated by profit.
• Conflict is necessary for social change.
• It seeks to alter the existing system.
• It favours transformation of Trade Unions into revolutionary
organisations.
Gandhian Approach
• This approach highlights Gandhi's views on workers,
management, customers and all other groups involved in
an industry.
• Keep minimum wealth for self and give up rest for charity
for greatest good for all.
• It urges labours to avoid going on strike & to remain
peaceful and non-violent.
International Labour Organisation
• ILO was formed in 1919 and India was one of the
founding member.
• It promotes social justice and internationally recognises
human rights and labour rights.
• Trade Union Act, 1926.
• All India Manufacturer's Organisation(AIMO) set up in
Mumbai in 1941.
• SCOPE was registered in september 1970.
Trade Union
• Trade Unions are voluntary organisations of workers.
• Formed to promote and protect their interest through
collective actions.
• Minimum 7 members needed to file to form Trade Union.
• AITUC was the first national fedration of trade union.
• For Trade Union to become a national organisation-
1. Number of members- 5 lakhs or more
2. Spread across 4 or more states.
Objectives
• Collective Bargaining.
• To protect the intrest of workers.
• To provide satisfactory wages and salaries .
• Improving working condition of workers.
• Facilitating the fight of workers against unfair policies.
• Ultimate aim is for the welfare of the workforce.
Grievance Settlement
• Industrial Disputes Act, 1947.
• Differentiates disputes arising in public utility services and
those in other industries.
• Machinery for settlement of industrial disputes comprises:
1. Conciliation
2. Arbitration
3. Adjudication
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Industrial Relation

  • 2. Background • History of the Indian economy and its labour force in the post independence period can be divided into 2 phases: 1. The import substitution era post-independence (1947-1991) 2. The era of economic liberalization (after 1991)
  • 3. Defining IR • Industrial Relation can be defined, as the relation between management and union or between representatives of employees and representatives of employers • Refers to all aspects of employement relations. • Industrial Disputes Act, is same across all sectors.
  • 4. System framework Dunlop Framework Dunlop suggested that IR can be segmented into 4 inter-related elements:  Actors  Context  Idealogy  Rules
  • 5. Limitations • With liberalisation and growing environmental concerns, consumers and the community have come to play a critical role. • Also, Dunlop talks about roles, not people.
  • 6. Approaches to IR Psychological Approach • It explains behaviour in relation to certain personality aspects such as perception and attitudes. • Certain groups of people have sterotype way of thinking. • Bias perception cloud transaction between the labour and the management.
  • 7. Sociological Approach • Organisations reflect societal norms, values and cultures. • Focuses on the social factors that influence productivity of the work group. • factors include work stress, mobility, health, wages, compensation packages etc.
  • 8. Human Relation Approach • Organisation believes in employees having needs, goals and aspirations. • Each group have their own needs and demands. • Leadership factor also plays a major role. • Deals with issues in an objective manner and resolves conflicts satisfactorily.
  • 9. Marxist Approach • Introduced by Karl Marx. • Production system is owned and motivated by profit. • Conflict is necessary for social change. • It seeks to alter the existing system. • It favours transformation of Trade Unions into revolutionary organisations.
  • 10. Gandhian Approach • This approach highlights Gandhi's views on workers, management, customers and all other groups involved in an industry. • Keep minimum wealth for self and give up rest for charity for greatest good for all. • It urges labours to avoid going on strike & to remain peaceful and non-violent.
  • 11. International Labour Organisation • ILO was formed in 1919 and India was one of the founding member. • It promotes social justice and internationally recognises human rights and labour rights. • Trade Union Act, 1926. • All India Manufacturer's Organisation(AIMO) set up in Mumbai in 1941. • SCOPE was registered in september 1970.
  • 12. Trade Union • Trade Unions are voluntary organisations of workers. • Formed to promote and protect their interest through collective actions. • Minimum 7 members needed to file to form Trade Union. • AITUC was the first national fedration of trade union. • For Trade Union to become a national organisation- 1. Number of members- 5 lakhs or more 2. Spread across 4 or more states.
  • 13. Objectives • Collective Bargaining. • To protect the intrest of workers. • To provide satisfactory wages and salaries . • Improving working condition of workers. • Facilitating the fight of workers against unfair policies. • Ultimate aim is for the welfare of the workforce.
  • 14. Grievance Settlement • Industrial Disputes Act, 1947. • Differentiates disputes arising in public utility services and those in other industries. • Machinery for settlement of industrial disputes comprises: 1. Conciliation 2. Arbitration 3. Adjudication