provides the information about how to manage disputes and conflicts in an organization.Various approaches to solve them.

1. Managing labour relation
• Rashmi pathak
• Suruchi jha
• Nidhi bhardwaj
• Zeba khan
• Janak joshi

2. TOPICS COVERED UNDER PRESENTATION:
1. Defining Industrial Relation
2. Objectives and purpose
3. Approaches to industrial relation
4. Labor Acts
5. Process of Unionism
6. Collective Bargaining
7. Causes and Disputes
8. Methods of settlement of Disputes
9. Prevention of disputes

3. introduction
Labour relation or industrial relation as it known in Britain, is a
interdisciplinary and somewhat diffuse study of institution and rule-
fixing processes of the labour –market. Its core subject-matter has
always been collective bargaining between trade unions or
analogous organization of employees, on one hand, and employers
and their associations on the other

4. Definitions given by author’s-
According to R A Lester
‘involves attempts to have workable solutions between conflicting objectives and
values , between incentive and economic security, between discipline and
industrial democracy, between authority and freedom and between bargaining
and cooperation’
According to Dale Yoder
‘a relationship between management and employees or among employees and
their organizations that characterize and grow out of employment.

5. Defining Industrial relations.
Institutional based relation.
Industrial relations are the sum of institutional processes that establish and
administer the rules regulating workplace relation
Social-psychological definition
Industrial relation are the sum of social psychological interactions between
individuals
Class-based definitions
Industrials relations are the sum of institutional, interactions and processes that
are a product of wider social and economic influences. In particular the class
divisions of contemporary capitalism.

6. Objective or purpose of labour relations-
• Industrial relations helps to safeguard interest of labour by
securing highest level of mutual understanding.
• To avoid industrial conflict and develop hormonal relation
among worker and management.
• To increase organization productivity by reducing absenteeism
and turnover.
• To establish and maintain the growth of industrial democracy
by taking employees participation and providing them equal
benefit.

7. • To reduce wastage and increase efficiency in an organization.
• To improve the image, growth and development of industries.
• To maintain industrial peace and stability through collective
bargaining.
• To eliminate problem with industrial relation

8. INDUSTRIAL RELATIONS
The relations between management and workers in
industry.
"lifetime employment tends to contribute to better
industrial relations"

9. Approaches to industrial relations
• Unitary approaches
The unitary approaches to industrial relation is based on
assumption that every one-be it employee, employer or
government-benefit when emphasis is on common interest .
Under unitary approaches, industrial relation is founded on
mutual co-operation, team work, shared goal and so.

10. CRITICISM:
Unitary approach is criticized mainly on two ground.
First, it is used as a tool for keeping employees at bay
from unionism. Second, it is seen as exploitative and
manipulative.

11. • Pluralistic approach
Pluralistic approaches is a departure from unitary approaches
of industrial relation. This approaches is evolved and practiced
in mid 1960s and early1970s in England. The approach
perceives that organization is a coalition of competing interest
groups mediated by the management.
At times, it may so happen that management in its mediating
role may pay insufficient attention to the needs and claims of
employees.
In such a situation, employees may unite in the form of trade
unions to protect their needs and claims.as a result, trade
unions become the legitimate representatives of employees in
an organization.

12. • Marxist approach
Like pluralists, Marxists also view conflict between labor and
management inevitable. But Marists unlike pluralists, regard
conflict as a product of the capitalists society based on
classes.
According to Marxists conflict arises because of division within
society in terms of haves.

13. The main objectives of capitalists has been to improve
productivity by paying minimum wages to labor. Labor
views this as their exploitation by the capitalists . The
Marxist do not welcome state intervention as, in their
view, it usually supports management’s interest.
Therefore. The labor-capital conflict, according to
Marxist approaches, cannot be solved by bargaining,
participation and cooperation.

14. ACTS RELATED:
 Racketeering influenced and Corrupt Organizations Act
(RICO) of 1978
Although this act has far-reaching tentacles, the Racketeering influenced
and Corrupt Organizations Act (RICO) serves a vital purpose in labor
relations RICO’s primary emphasis with respect to labor unions is to
eliminate any influentation of RICO if “payments or loans are made to
employee representatives, labor organizations, or officers and employees
of labor organizations, where such action occurs in the form of “bribery,
kickbacks, or extortion.” Over the past decade, RICO has been used to oust
a number of labor officials in the teamsters union who were alleged to have
organised crime ties.

15.  Civil Service Reform Act of 1978
Title VII, of the Civil Service Reform Act,
established the federal labor relation authority (FLRA)
as an independent agency within the executive
branch to carry out the major function previously
performed by the FLRC.

16. THE TAFT-HARTLEY ACT
The major purpose of the Taft-Hartley Act was to
amend the Wagner Act by addressing employer’s
concern in terms of specifying unfair union labours.
The WAGNER ACT
The national labor relation Act of 1934, commonly
referred to as the Wagner Act, is the basic “bill of
rights” for unions. This law guarantees workers the
right to organize and join unions, to bargain
collectively, and to act in concert to pursue their
objectives.

17. PROCESS OF UNIONISM
1. Unionization
2. Disputes/conflict
3. Collective bargaining
4. Contract settlement
5. Contract administration

18.  UNIONIZATION
It refers to union of workers working in an
organization in an organization .the process of
industrial relationship begin with formal and legal
relationship of labor union. Such labor union must be
dully accepted by organization.

19.  DISPUTES/CONFLICT
Disputes and conflict are between worker and
management over industrial matter. The issues which
leads to conflict between worker and management is
mostly due to interest,rights,and welfare of workers.
managerial and economic might major causes of
disputes in an industries for ex compensation system
working condition etc.

20.  COLLECTIVE BARGAINING
It refers to negotition,aggrement between two parties
which leads to comprised situation among them.
Under this situation among them. Under this both
management and union negotiate with each other,
face to face and put their list of demand collective
bargaining is an essential effect to resolve conflicts
and disputes in an industries

21.  CONTRACT SETTLEMENT
The decision which are taken in collective bargaining
procedure is converted into written agreement
between management and labor union. Such contract
are dully accepted by both the parties.

22.  CONTRACT ADMINISTRATION
It is last step in process of unionism. it is process of
bearing responsibility as the part of management.
Under this management communicate the contract
to each and every member who are related with
industries under this they continually monitor the
activities of worker during contract period.

23. Collective bargaining
it refers to negotiation, admiration and interpretation of
time bound written agreement between two parties. It
helps in settling disputes and solving conflict situation in
an organization. It leads to democratic leadership and
participative style of management in an organization. It
defines employers and employees relationship on the job
through collective agreement.

24. Collective bargaining procedure
1. Presenting demand
2. Reduction of demand
3. Formation of committee
4. Informal settlement of demand
5. Signing a formal contract

25. • PRESENTING DEMAND
In this step representative of employees and employers dully
present their demand the list of employees demand is
forwarded by labor union. Whereas the list of employees is
forwarded by management
In this step both the parties generally reduces their demand .
Both the parties trade off some of their discussion take place
before reducing a demand
• Reduction of demand

26. • FORMATION OF SUBCOMMITTEE
Under this step sub-committee is formed in order to solve
problem, If the demand are short and simple. The work of sub-
committee becomes easier and vice-versa. such committee duly
analysis causes and consequences and try to work out in order
to solve problem by help of reasonable alternative
• informal settlement of demand
In this step both the parties tries informally in settlement their
demand. union representative dully concern with their union
member and management informally concern with their
employers and owner

27. • SIGNING A FORMAL CONTRACT
It is the last step involve in collective bargaining process. In this
both the parties goes through signing a formal contract, after
reaching this step both the parties dully forget past event and
look for proper implementation of an agreement

28. Disputes.
disputes are common which generally arises between
employers and employees over certain matter and issues. Such
disputes are related to right and interest of worker. Labor
disputes can be either individual or collective, disputes can be
between (employers , workers),(employees ,employers)
(employers government).
Such disputes can be either positive or negative from
organization point of view. Labor disputes mainly affect
organization activities and leads to loss in productive decreases
moral of employees and leads to winding up an organization.

29.  Industrial disputes
 An industrial dispute may be defined as a conflict or
difference of opinion between management and workers
on the terms of employment. It is a disagreement
between an employer and employees representative;
usually a trade union, over pay and other working
conditions and can result in industrial actions.
 Industrial disputes or differences in an industry occur
owing to factors which are essential economic in nature.
However, as exhibited by the recent trends, industrial
disputes occur due to non-economic causes also. These
mainly include psychological , managerial and political
causes.

30.  From the point of view of the employer, an industrial dispute
resulting in stoppage of work means a stoppage of production.
 This results in increase in the average cost of production since
fixed expenses continue to be incurred. It also leads to a fall in
sales and the rate of turnover, leading to a fall in profits.
 The employer may also be liable to compensate his customers
with whom he may have contracted for regular supply.
 For the employee, an industrial dispute entails loss of income.
The regular income by way of wages and allowance ceases,
and great hardship may be caused to the worker and his
family.
 Employees also suffer from personal injury if they indulge into
strikes n picketing; and the psychological and physical
consequences of forced idleness. The threat of loss of
employment in case of failure to settle the dispute.

31. Causes of disputes
Economic
causes
Managerial
causes
Political causes
• Compensation
• Employment
condition
• Bonus
• Industrial sickness
• Lack of
consultation
• Disciplinary
action
• Lack of
communication
• Political
interference
• Union rivalry
• Multi-labour
law

32.  Economic causes:
it relates with economic factor . It relates with
compensation, bonus, employment condition and industrial
sickness.
• compensation:
It is the most important causes for disputes in an organization. It
relates with payment benefit and services. Increase in demand
of worker related to their compensation leads to conflicts in an
organization.
• Employment condition:
• different terms and condition used in employment results
disputes in an organization. The demand for improvement in
working conditions such as lesser working hours, security of
job, better safety measures in the factory, leave, canteen,
gratuity facilities, etc., are also responsible for many industrial
disputes.

33. Bonus:
 Lack of bonus facility insufficient bonuses to
the worker generally leads to disputes
situation in an organization.
 The workers feel that they should have a
greater share in the profits of the industrial
concern. Non-acceptance of this fact by the
employers has been a source of friction
among the employers and the workers.

34.  Industrial sickness:
 The Reserve Bank of India has defined a
sick unit as one “which has incurred a cash
loss for one year and is likely to continue
incurring losses for the current year as well
as in the following year.
 the causes of industrial sickness are
broadly classified into two categories:
 (i) External causes/Exogenous causes, and
 (ii) Internal causes/Endogenous causes.

35.  External causes: The external or exogenous
factors which are beyond the control of a industry
usually affect the industry-group as a whole. Some
external factors are-
 General recessionary trend
 High prices of inputs
 Non availability of raw materials
 Changes in govt. policies
 Internal causes: Internal or endogenous causes
are those which are within the control of the unit.
These causes arise due to some internal
deficiencies in various functional areas like finance,
production, marketing and personnel. Some causes
are-

36.  Project appraisal deficiencies
 Industrial unrest and lack of employee motivation
 Marketing problems
 Wrong location

37.  Managerial causes
They are the results of dealing of employees with workers in an organization
• Lack of consultation
Lack of consultation by employers with union in case of employees
retirement transfer promotion, training and development generally leads to
disputes in an organization
• Disciplinary action
Disciplinary action relating with employees attendance, job behavior,
dishonesty and eternal activities results into disputes situation.
Management’s threat of use of coercion in exercising the rights of workers to
organize themselves in the form of union as per the legal provisions.
• Lack of communication
Unwillingness of management and employer to talk with union result into
conflict situation in an organization. Its unwillingness to talk over any dispute
with the employees even when trade unions want it to do so.

38.  Political causes
it basically relates with political factor such as political interference, union
rivalry and multi-labor law.
• Political interference
Undue interference from political parties results into disputes situation as labor
union are associated with different parties. Affiliation of the trade unions with a
political party, where the latter may instigate the trade unions to conduct strikes,
lockouts etc.
• Union rivalry
Inter union rivalry among labor union over ideologies results into disputes
situation.
• Multi-labor law
Multi-labor law related to labor welfare creates the situation of conflicts.
Confusion which duly causes disputes in an organization

39. Psychological Forces
Everyone has his/her own psychological
feelings, attitudes and beliefs. This difference
in beliefs and psychological aspects of
individuals may bring some labor disputes in
the organization. Some of the psychological
causes are:
- Motivation
- Appreciation
- Authority and responsibility
- Unfair treatment

40. Method of settlement of disputes
Unilateral decision Joint decision
Third party
decision
Grievance
procedure
Collective
bargaining
• Conciliation
• Mediator
• adjudication

41. Unilateral decision
• Grievance procedure-
Grievance procedure is systematic tool which is duly
undertaken to handle employees complain. It is the process
through which employees carry their complain to
management in an organization. Under grievance complain
are duly address and effective solution are taken out to sole
disputes .collective bargaining duly taken grievance
procedure. It is time consumption complain move in upwards
direction from lower level management to upper
management.

42. Joint decision
 Collective bargaining:
it is the process of negotiation, administration and interpretation of time
bound agreement between labor and management in order to settle disputes
. Under this method the representative of both labor and management sit
together discuss in order to settle disputes. It is democratic way of
expressing view, idea, opinion. collective bargaining helps in providing
satisfaction to both the parties

43. Third party decision
 Conciliation method
It is process in which third party play an important role in settling disputes.
Settlement of disputes mainly depends on agreement of both the parties .
Under this third parties doesn’t give any verdict but pursued or convince both
the parties which helps in solving the disputes.
 Mediator
Under this method a mediator plays a vital role in settling of disputes in an
organization. Under this method the third party duly submit proposal for
settling of disputes. Such proposal can be either except or reject by both the
parties. The mediator should be fair and unbiased while soling the disputes.

44.  Adjudication method
It is process of settling disputes by the help of court of law.
Such disputes can be settle either by ordinary or labor court .
The verdict of law is liable to both the parties. It is time
consuming and costly process. The verdict of law can be
appeal in higher court.

45. Prevention of disputes
Disputes between worker and employer can be reduce by
undertaking certain effective technic. Prevention of disputes helps
in bringing effective industrial relation in order to prevent disputes
management must carefully study to avoid disputes.

46. • Open communication.
It generally refers to free flow of information. Such
communication should be simple and clear so it helps in
avoiding situation of conflict . Two way face to face
communication helps in knowing problem and helps in
settling it in effective manner.
• Equity
The employer must duly establish equity in terms and
condition of employees .equity helps in minimizing disputes
in an organization.

47. • Counseling
Management should undertake counseling season in order to
avoid labor disputes .management should duly make
arrangement of training and counseling in order to prevent labor
disputes in an organization.
• Collective bargaining
Under this both the parties enter into written contract for specific
period in relation to working condition, compensation, packages,
employment terms and condition. Such collective bargaining
helps in gaining commitment from employees

48. • Participation
Management must duly participate the employees while
making decision which are related with them. While
participating employees clear information must be provided to
employees over matter of discussion, employees participation
helps in preventing disputes in an organization.