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Human Resource Management

Notes pointed out that at the time of taking advance, both the union and workman had agreed
that this amount will be recovered from the compensation payable and since no
compensation is payable, the workman should pay back the advance. The management,
further pointed out that it cannot waive the recovery of the above advance as it is bound
by the rules. The union, however, insisted that management should not proceed on the
recovery of advance from the workman. The management also heard rumours that the
said union may stage a "show down" over this issue.
Questions
1. What is the problem in the case?
2. Analyse the causes which led to the problem.

3. How should one deal with such a situation?
Source: IGNOU September, 1990.

13.10 Summary

 Industrial relations or labour relations are the outcome of the employment relationship
in an industrial unit. It underscores the importance of compromise and accommodation in
place of conflict and controversy in resolving disputes between labour and management.

 The basic objective of industrial relations is to maintain sound relations between employers
and employees.
 Collective bargaining is the process by which representatives of management and workers
negotiate over wages, hours and other terms and conditions of employment.
 The objective of collective bargaining is to agree upon an acceptable contract, voluntarily
through negotiations. Traditionally, collective bargaining between labour and
management has been adversarial. Presently, negotiations are carried out in non-
adversarial way, in an atmosphere of mutual trust and faith. There are five different
approaches to study industrial relations, namely, the psychological approach, the
sociological approach, the human relations approach, Giri's approach and the Gandhian
approach.
 A trade union is a formal association of workers, acting collectively, who seek to protect
and promote their mutual interests through collective action. The main objective of any
trade union is to protect and promote the interests of its members. Unions perform certain
social, political and fraternal functions as well. Industrial conflicts constitute militant and
organised protests against existing terms and conditions of employment. They occur in
several forms such as strikes, lock-outs, gheroas, picketing, boycott, etc.
 Industrial disputes arise due to several causes relating to recognition, retrenchment,
employment conditions, indiscipline, wages and allowances, bonus, ill-treatment, etc.
13.11 Keywords

Closure: In case of closure the employer not only shuts down the place of business but also
suspends all the transactions of his business.

Collective Bargaining: A procedure by which the terms and conditions of employment of
workers are governed by agreements between their bargaining agents and employers.
Employers' Association: It is a formal group of employers set up to defend, represent and advise
affiliated employers.

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