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Session -1 Industrial Relations.pptx


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Session -1 Industrial Relations.pptx

  1. 1. Industrial Relations Session -1 Industrial Relations – Concepts and Approaches MHRDM SEM -V
  2. 2. Definition • Industrial Relations is a discipline, that concerns itself with the study of the relationships between employer and the employee in an organization , industry or a nation level. • These relationships are shaped in the larger context of societal, economic , political and technological forces that are in existence.
  3. 3. State Relationship Trade Unions Structures Context and Rules Employees’ Groups Employer groups Employees Employers
  4. 4. Factors influencing Industrial Relations •Actors- Players •Contexts-and impact •Structures •Rules & Law •Technology
  5. 5. Objectives of Industrial Relations At the Industry level: 1. A healthy relationship between employer and employee. 2. An environment free from dysfunctional conflict between the parties. 3. Gains in productivity for mutual benefit. 4. Full utilization of available manpower . 5. Creation of a work environment that reduces attrition. 6. Participative working on principles of industrial democracy. 7. Enhancement in the quality of work life.
  6. 6. Conditions for Good Industrial Relations 1. The existence of strong, well-organized and democratic employees unions to ensure equal bargaining power for protection of employees interests relating to wages etc. 2. Strong and well organized employers federation to promote and maintain uniform personnel policies among various organizations. 3. Belief in the process of settlement of conflicts through negotiation and collective bargaining. 4. Sound Personnel policies emanating from business strategies. 5. Top management support for industrial relations function. 6. Creating systems and machineries for employee engagement. 7. Well trained supervisors who understand the implications of building harmonious workplace. 8. A systematic effort to institutionalize a culture of mutual trust, respect and understanding.
  7. 7. Factors shaping the IR system in India 1. The colonial history. 2. Role of state – preventive and regulatory. 3. Association with ILO as a founder member. 4. Freedom movement with participation of labour in it. 5. Worker –centric state policies. 6. Import substitution policy- protection of domestic industries. 7. Trade unions- multiplicity and political affiliation. 8. Right to legislate on Labour- concurrent list.
  8. 8. The legal framework for IR in India Four groups of Labour Laws affect the employment relations: 1. Industrial Relations: ID Act, Industrial Employment Standing Orders Act, Contract Labour Act. 2. Wages: Payment of Wages, Minimum Wages 3. Social Security: ESI Act,EPF Act, Maternity Benefit Act 4. Safety, Welfare and Working conditions : Factories Act, Mines Act, Plantation Labour Act
  9. 9. Unitary view 1. Mutual cooperation, individual treatment, team work and shared goals. 2. Work place conflict is temporary aberration, resulting from poor management or workers not fitting in the organization culture. 3. Union –less environment - Collective bargaining viewed as anti – management. 4. Assumption: every one benefits when focus is on common interest and promotion of harmony. 5. Conflict is unnecessary and destructive.
  10. 10. Pluralistic view- The Conflict Approach 1. Organizations are coalitions of competing interest. Management’s role to mediate among different interest groups. 2. TUs are legitimate representatives of employee interests. 3. Stability is a product of concessions and compromises between management and unions. 4. Conflict of management-unions is inevitable. 5. Strong union is inevitable and necessary. 6. Society’s interest protected by state intervention through laws and tribunals. 7. Industrial conflicts are natural and need to be contained through social mechanism of collective bargaining, conciliation and arbitration. .
  11. 11. Pluralistic view 3. Conflict in behaviour results form: • Specific situation (e.g. closure of some part of organization or change to new technology) • managerial decisions (to cut cost, increase profit and productivity)
  12. 12. Marxist: Control of the labour process  Focus  The way ‘capital’ controls ‘labour’  Mechanisms of management control  Scientific management or deskilling  Segmentation of labour (core & periphery)  Bureaucratic control (policies, procedures & rules)  Responsible autonomy (self-control or adoption of management values as integral part of job?)  Employee response  Resistance (restrictive practices)  Collectivism (joint regulation)
  13. 13. System Approach- Dunlop’s Industrial Relations System 1. Prof. John T.Dunlop of Harvard University Industrial Relations Systems (1958). 2. Purpose: ‘to provide tools of analysis to interpret and gain understanding of the widest possible range of industrial relations facts and practices.’ 3. Broadened it from collective bargaining to the entire spectrum of industrial relations. 4. Earlier frameworks tried to understand it in a fragmented way fro perspectives of different disciplines (psycholology, sociology, economics, and history and organization theory).
  14. 14. System Approach Generalized 3 level Framework : 1. IR within an enterprise. 2. IR within the country and comparison with other countries. 3. IR in totality in course of economic development.
  15. 15. System Approach Dunlop visualized IR as a systemic construct , as a sub system of society IR = f(a, t,m,p,i) A= Actors T= Technology M= Market P= Power I = Ideological Context Industrial Relations is regarded as comprising of ‘certain actors, certain contexts, an ideology which binds the industrial relations systems together, and a body of rules created to govern at the work place and work community.’
  16. 16. Dunlop’s Industrial Relations System Amitabha Sengupta
  17. 17. Gandhian Approach: Amitabha Sengupta 1. Concepts of trusteeship. Present capitalist order can be transformed into an egalitarian one. Capitalist is to hold industry in trust to the society. 2. Character of production determined by the society, rather than personal whim or greed. 3. Peaceful co-existence of capital and labour. 4. Workers should 1. Resolve conflicts through a. non-violent, non –co-operation( satyagraha) b. through collective action. 2. Avoid strikes in philanthropic institutions and essential services. 3. Recourse to voluntary arbitration 5. Indian IR system influence by Gandhian approach- example: peaceful settlement, arbitration etc.
  18. 18. 3- Tier Model of Kochan, Katz and Mckersie Level Employer Unions Government 1. Long term strategy & Policy making a. Business strategy b. investment strategy c. hr strategy a. Political strategy. b. Representation strategy. c. Organization strategy. Macro-economic and social policies. 2. Collective bargaining and Personnel Policy a. Personnel policies b. Negotiation strategies a. Collective bargaining strategy Labour law and administration 3. Workplace and Individual /organization relationships a. Supervisory style b. Worker participation c. Job design d. Work organization a. Contract administration b. Worker participation c. Job design d. Work organization a. Labour standards b. Workers participation c. Individual rights.
  19. 19. 3- Tier Model of Kochan, Katz and Mckersie 1. It recognizes the inter-relationships among activities at different levels. 2. It considers the effects of various strategic decisions exert on different actors. 3. Effects of increased participation in workplace decisions for IR. 4. Encourages analysis of the roles of different actors in each other’s domains and activities.
  20. 20. Amitabha Sengupta
  21. 21. Evolution of Industrial Relations in India Four broad temporal phases : 1947-1965, 1966-1977; 1978-1990, 1991 till date
  22. 22. First Phase: 1947-1966 1st , 2nd & 3rd Five Year Plans 1. ‘Import -Substitution Industrialization’ 2. ‘National capitalism ’ 3. Economy grows @ 2%-3%/year. 4. Formation of large employment -intensive public enterprises. 5. Largely centralized bargaining with static real wages. Relative industrial peace. 6. Growth of public sector unionism. membership trebled. 7. Tripartism became the norm. 8. wage setting conducted through setting up of Wage Boards for several key industrial sectors. 9. Government controlled & regulated IR.
  23. 23. Second Phase: 1967- 1979 4th & 5th Five Year Plans Political fragmentation , industrial stagnation and low rates of employment growth. 1. Economic stagnation 2. Economy grows at @ 2%/year ; two oil price shocks 3. Considerable slowdown in employment growth & declining real wages. 4. Crisis in IR system: massive strikes & industrial conflict, multiple unionism & decline in strength. 5. Government losing control over the IR system. 6. The declaration of Emergency – labour rights and privileges withdrawn and right to strike suspended from June 1975.
  24. 24. Third Phase: 1980 -1990 6th & 7th Five Year Plans 1. Initial domestic economic liberalization; economy grows @ 5.7%/year. 2. Regional variation in economic development increases. 3. Variation in wage growth: skilled versus unskilled, labour productivity increases, period of ‘jobless ’ growth. 4. Rise of 'independent ’ enterprise unionism, several city/regional IR systems operating? 5. The trends of consumer nondurables firms starting to subcontract and outsource their production to the unorganized sector. 6. No overt changes in the labour law and labour market policies except for the 1982 and 1984 amendments to the Industrial Disputes Act, 1947, 7. Government slowly withdrawing from IR system?
  25. 25. Final Phase: 1991 till date 8th -12th Plan Stabilization & Structural Adjustment Reforms: 1. Economy grows @ 6.2%-6.5%; Last five years ( 2004- 07) growing @ 7%-8%/year. Perhaps at 10% hence? 2. Regional variation increases massively. 3. Between 1999 & 2004: absolute number below poverty line falls for the first time since independence. 4. Max growth in services: IT, IT-enabled services,‘hotels, trade & restaurants restaurants’, but also in autos &, ancillaries; more recently in overall manufacturing.
  26. 26. Final Phase: 1991 till date 8th -12th Plan 4. Greater decline in public sector employment. 5. The changing role of the State, competitive pressures of globalization, technological changes, and changing work organization, along with the resultant contractualisation and outsourcing, impacted the employment relations scenario in the country. 6. Change from a state-dominated industrial relations system and centralized wage bargaining structure to a more pluralistic and decentralized industrial relations system. 7. Further, long term trends in industrial disputes and the related/causative factors also witnessed during the period.