Page 212 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Unit 13: Industrial Relations

Notes

Notes Factors Influencing Industrial Relations
Industrial relations are influenced by various factors viz., institutional factors, economic
factors and technological factors.
1. Institutional Factors: These factors include government policy, labour legislation,
voluntary courts, collective agreements, employee courts, employers' federations,
social institutions like community, caste, joint family, creed, system of beliefs,
attitudes of workers, system of power, status, etc.
2. Economic Factors: These factors include economic organisations, like capitalist,
communist, mixed, etc., the structure of labour force, demand for and supply of
labour force, etc.
3. Technological Factors: These factors include mechanisation, automation,
rationalisation, computerisation.

13.2 Importance

In its wider sense, industrial relations include the relationship between an employee and an
employee in the course of the ruining of an industry and may project itself in to sphere which
may transgress into the area of quality control. The association of various persons, workmen
supervisory staff, management and employer creates an industrial relationship. In other words,
industrial life creates a series of social relationship, which regulate the relation and working
together of not only workmen and management, but also of the community and the industry.
1. Labour Relations: Relation between union and management also know as labour as
management relation.

2. Employer Employee Relation: Relations between management and employees.
3. Group Relation: Relation between various groups of workmen.
4. Community or Public Relations: Relations between industry and society.
The last two are generally not considered for study under industrial relations but as part of the
larger discipline – sociology.
The main aspects of industrial relations are:
1. Promotion and development of healthy labor management relation.

2. Maintenance of industrial peace and avoidance of industrial strife, and
3. Developments of Industrial democracy.

Development of Healthy Labour-management Relations

1. The existence of strong, well-organized, democratic and responsible trade unions and
association of employers. These associations also tend to create vantage grounds for
negotiations consultations and discussion on a mutual basis which ultimately lead to
good labour-management relations.

2. Spirit to collective bargaining and willingness to take recourse to voluntary arbitration.
Collective bargaining recognizes equality of status between apposing and conflicting
groups and prepares the ground, in an atmosphere of trust and goodwill, for discussions,
consultation and negotiation on matter of common interest to both industry and labour.

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