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Human Resource Management

Notes Stage IV: Golden Age of Industrial Relation and Personnel Management
Maintenance Function (1935-1970)

After the World War I, there was great depression. Following the depression, there was an
increased need for the practice of Human Resource Management as a result of a growth in
unions and collective bargaining. At this time, there was a shift in emphasis towards the Industrial
Relation Function of Human Resource Management.
During the period from 1945 to 1970, the primary focus of the employment relationship was on
industrial relations and this human resource management function rose in prominence. The
pro-union legislation was followed by World War II, which created an extraordinary demand
for labour, resulted in unprecedented union prestige and fuelled a phenomenal growth in union
membership.
The industrial relation side of human resource management experienced its golden age between
1948 and 1958. The general focus of human resource management was on industrial relations
because the primary need of many organizations was to operate in collective bargaining
framework of labour relations.
Major Changes during the Period

1. The first step was the enactment of Industrial Disputes Act, 1947, which not only provides
for the establishment of permanent machinery for the settlement of industrial dispute but
also makes these awards binding and legally enforceable.
2. Another development was setting up of Indian Labour Conference- a tripartite body to
look into industrial relation problems in India. It was constituted with the objective of
establishing co-operative between government, employers and trade unions.
3. Another important feature was change in attitude of government towards labour and
their problems. Many labour laws were enacted to protect the interests of industrial
workers during 1947 to 1956. These laws cover many issues concerning labour such as
seniority, wage rates, paid holidays, disciplinary matters, social security, etc.
4. In 1957, the emphasis shifted from legal enactments to voluntary arrangements. In fact,
the period between 1957-1965 can be regarded as an attempt to move away from legalism
to voluntarism, which had dominated the industrial relations in India- through Works
Committees/Joint Management Councils (JMC), recognition of unions, grievance
procedures for workers, workers participation schemes, etc.
5. Subsequent to this period, many political and international events affected the course of
industrial relations. Between 1962 and 1971, India fought three wars, one with China and
two with Pakistan. In 1966, National Commission of Labour (NCL) was appointed by the
government to look into the matters. Some of the recommendations are in various stages
of implementation namely; relating to workers' training, induction and education, working
conditions, social security, labour administration, etc.
At present, at the plant level, Indian industrial relations are dominated by legalists. Many of
these laws reflect the government's socialistic orientation. On the other hand, the government
has also made efforts, in addition to management and union attempts in several cases to promote
a bipartite collective bargaining situation.

Stage V: Control of Labour Tradition (1970-1990)

The institution of the trade union, which is a product of capitalist industrialization, emerged in
Britain and other developed countries in the West in the 19th century, basically to protect

12 LOVELY PROFESSIONAL UNIVERSITY