Page 211 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management

Notes organizations formed to promote their respective interests, and the relations between those
organizations, at all levels. Industrial relations also includes the processes through which these
relationships are expressed (such as, collective bargaining, workers' participation in decision-
making, and grievance and dispute settlement), and the management of conflict between
employers, workers and trade unions, when it arises.
Harmonious industrial relations between labour and management are essential to achieve
industrial peace and higher productivity. When the relationship between the parties is not
cordial, discontentment develops and conflicts erupt abruptly. It is not always easy to put out
the fires with the existing dispute-settlement-machinery, created by the government. Hence
both labour and management must appreciate the importance of openness, trust and collaboration
in their day-to-day dealings.

13.1 Nature

1. Employer-employee Interactions: Industrial relations arise out of employer- employee
interactions. These relations cannot exist without the basic building blocks, i.e., the
employer on one side and the employees on the other side. (Kumar)
2. Web of Rules: Industrial relations are a 'web of rules' formed by the interaction of the
government, the industry and the labour. They include the relations between employer
and employees and between employers' associations, trade unions as well as the State.

3. Multidimensional: Industrial relations are fairly multi-dimensional in nature as they are
influenced, by a complex set of institutional, economic and technological factors.

4. Dynamic and Changing: Industrial relations change with the times, generally keeping
pace with the expectations of employees, trade unions, employers' associations, and other
economic and social institutions in a society. Apart from the legal framework, these
societal forces generally influence the direction of industrial relations within a country.
(Agnihotri)
5. Spirit of Compromise and Accommodation: The industrial relations system is characterised
by forces of conflict and compromise on either side. In the larger interests of society, both
the employer and the employees must put out fires amicably and get along with each
other in a spirit of compromise and accommodation. The individual differences and
disagreements must be dissolved through persuasion and even pressure. The factors
responsible for conflictful situations need to be resolved through constructive means.
(Ramaswamy)
6. Government's Role: The government influences and shapes industrial relations with the
help of laws, rules, agreements, awards of courts and emphasis on usages, customs,
traditions, as well as the implementation of its policies and interference through executive
and judicial machinery.
7. Wide Coverage: The scope of industrial relations is wide enough to cover a vast territory
comprising of grievances, disciplinary measures, ethics, standing orders, collective
bargaining, participatory schemes, dispute settlement mechanisms, etc.

8. Interactive and Consultative in Nature: Industrial relations includes individual relations
and joint consultation between labour, management, unions, the state, etc. It pinpoints the
importance of compromise and accommodation in place of conflict and controversy in
resolving disputes between labour and management. (Myers and Kannappan; Dufty; Dayal)

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