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Nature And Scope Of Industrial Relations

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Mar 23rd, 2012
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Industrial Relations are viewed as the process by which people and their organisation interact at the place of work to establish the terms and conditions of employment. The process of interaction stressed not just the resulting standard. Finally, the whole process is viewed as a system. In order to emphasis the interrelation among people their work, organisation and the standards in industrial management.


The term Industrial Relations commonly denotes employee-employer relations in both organized and unorganized sectors of the economy. IR is also know as labour management relations or labour relations, union management, Human relations.

According to J.Henry : Industrial Relation is an art, the art of living together for the purpose of production.

Nature of IR:- Emphasize, IR is concerned with the relationship between management and workers and the role of regulating mechanism in resolving any industrial dispute.

1) IR covers the following areas:

- Collective bargaining

- Role of management, unions and government

- Machinery for resolution of industrial disputes.

- Labour legislation

- IR training

- Grievance and disciplinary policy

2) IR is characteristics by both conflict and co-operation. This is the boris of adverse relationship. So the focus of IR is on the study of the attitudes, relationship practices and procedures developed by the contending parties to resolve or at least minimize conflicts.

3) IR is concerned by laws, rules and regulations agreevied conditions, policy framework, government transactions, co-operation between management and labour.

4.) To raise productivity to a higher level in an era of full employment by labour turn over and frequent absenteeism.

Importance of Industrial Relation (IR):-

IR is the key for increased productivity in industrial establishment. IR main objectives is to protect workers interest and to improve their economic conditions.

1. IR pattern organized sector and its impact on unorganized sector.

The pattern of IR in the organized sector of economy has a definite impact on labour- management relations in the un-organized sector. The trends and pattern established in the organized sector Spillover or influences the practices of even the most unorganized industries. This happen because there is always pressure from a variety of groups on unorganized firm to match its employment and working conditions, benefits etc. with that of organized one.

2. Unions are important force in the Indian political system.

The impact of Indian Trade Union on the political system is much wider than an industry. The Indian trade unions which are a fall-out of the politician system are invariably used by both the ruling and opposition parties. In addition, the union sponsored by the ruling party to influence the legislative process through their interest lobbying activities.

3. Status Difference in the workers of public and private sector.

In India, with the adoption of socialistic pattern of society subsequent acceptance of Industrial policy resolution of 1956, the public sector was entered with the responsibility to accelerate the economic development of the country.

4. Cordial atmosphere.

Good IR not only maintain coordinal atmosphere in industry but also facilities production and industrial growth.

5. Healthy Labour-Management Relations:

The existence of strong, well-organized, democratic and responsible trade unions and associations of employers. These Organisations enhance the job security of employees, help in increased and give labour a dignified role in society.

6. Maintenance of Industrial peace:-

Industrial peace can be largely nurtured through the following means:-

  • Machinery should be set up for the prevention and settlements of industrial disputes.
  • The government should have the power to refer disputes to adjudication when the situation tends to get out of hand and is faced with economic collapse due to continue stoppage of production on account of long strikes/lockouts when it is in the public interest to do so during periods of emerging or when there is fear of foreign attack or when production needs to be carried on without interruption.

7. Development of Industrial Democracy:

Recognition of Human Rights in industry. Increase in labour productivity. The availability of proper work environment.

Little to all of us realize that it is the people who creates problem everywhere and it is only who can find solutions too. If there is a problem from employees there is a solution also. Viewing every problem seriously resorting the manipulation style of IR which emphasis the need of the labour.

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