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Human Resource Management

Notes agreement, proposals are being matched with counter proposals), a formal document
must be prepared expressing everything in a simple, clear and concise form.
7. Enforcing the Agreement: Collective bargaining does not come to an end with the signing
of the agreement. For the agreement to be meaningful and effective, both parties must
adhere to the conditions agreed upon and implement every thing scrupulously.

Did u know? "Bargaining zone" which is the area bounded by the limits within which the
union and employees are willing to concede.

13.4 Approaches to IR

Industrial relations are the result of several socio-economic, psychological and political factors.
Various approaches have, therefore, been used to explain the multidimensional nature of
industrial relations:
1. Psychological Approach: According to psychologists, the problems of industrial relations
are attributable to the differences in the perceptions of labour and management. Both
parties tend to look at factors influencing their relations – i.e. wages, benefits, working
conditions, etc. – in different ways. Dissatisfaction with pay, benefits, services, conditions
of work compel workers to turn aggressive and resort to strikes, gheraos, etc. Employers
adopt rigid postures and draw the shutters down when they find the regulatory framework
to be restrictive, workers to be highly demanding and market forces to be unmanageable.
Apart from economic issues, motives such as the need to gain prestige, power, status,
recognition also compel people to go in different directions, sacrificing the broader
organisational interests.
2. Sociological Approach: A number of sociological factors such as the value system, customs,
and traditions affect the relations between labour and management. Problems such as
urban congestion, chronic shortage of affordable dwelling units, convenient transportation
system, pollution, disintegration of joint family system, etc., add misery to the lives of
workers. Accepted societal norms, traditions and customs are pushed to the wall in such a
scenario. Culture pollution sets in, rubbing workers the wrong way. Such sociological
changes impact industrial life significantly, forcing parties to assess, analyse and find
solutions to conflictful situations on a continuous basis.
3. Human Relations Approach: According to the human relations approach, individuals are
motivated by a variety of social and psychological factors, not just earnings. Human
behaviour is influenced by feelings, sentiments, and attitudes. Informal work groups play
an important role in shaping the attitudes and performance of individual workers. People
do not like the idea of being treated as machines. To reduce friction and conflict in the
workplace, managers need to possess effective social skills. They must explain why a
particular job is important, allow workers to participate in work processes fully, encourage
work groups to flourish and try their best to keep workers happy. Economic and non-
economic rewards must be used to meet the physiological and psychological requirements
of workers from time to time. Every attempt must be made to integrate the individual
objectives with overall organisational objectives to avoid conflict and controversy in
industrial life.

4. Giri Approach: According to V.V. Giri (Former President of India), collective bargaining
and joint negotiations be used to settle disputes between labour and management. Outside
interference must be avoided at all costs while resolving differences between the parties.
Trade unions should use voluntary arbitration in place of compulsory adjudication to

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