Industrial relations HRM

1. INDUSTRIAL RELATIONS

2. PRESENTATION OUTLINE
 Meaning and concept
 Definition
 Parties to IR
 Importance
 Causes
 Approaches
 Suggestion
 Conclusion

3. MEANING AND CONCEPT
 “Industry” refers to “any productive activity in which an
individual (or a group of individuals) is (are) engaged”.
 By “relations” we mean “the relationships that exist
within the industry between the employer and his
workmen.”

4. DEFINITION
 According to J.T. Dunlop, “Industrial relations are the
complex interrelations among managers, workers and
agencies of the government”

5. Employer-Employee
Relations
Employee
Associations
Industrial Relations
Employees
Employers
Government Courts &
Tribunals
Employer
Associations
TRADE
UNION

6. IMPORTANCE
 Uninterrupted production
 Reduction in Industrial Disputes
 High morale
 Reduced Wastage

7. CAUSES OF POOR INDUSTRIAL
RELATIONS:
 Economic causes
 Organizational causes
 Social causes
 Psychological causes
 Political causes

8. APPROACHES OF IR
 There are mainly three approaches to IR
1. Unitary approach
2. Pluralistic Approach
3. Marxist Approach

9. UNITARY APPROACH
 The unitary approach has following assumption-
 All the members have a common set of objectives,
purposes and interests.
 The profitability of the firm increases if everyone in
organization has the common interest n purpose.
 Strikes are destructive.

10. PLURALISTIC APPROACH
 The pluralistic approach has following assumption-
 organization is an alliance of powerful and divergent
sub-groups having different competing interests that
are mediated by the management.
 During mediation, if the management pays less
attention to the needs of the workers then they form
unions in order to protect their interest and influence
the management decision.
 it is based on the notion that the conflict between the
management and the employees is inevitable and is
viewed as instrumental in the innovation and growth.

11. MARXIST APPROACH
 The Marxist approach has following assumption
 Conflict is regarded as the product of a capitalist society.
 This means that conflict arises not just because of the rift
between the employee and the employer, but also because of
the division in the society between
 Those who owns the means of production (capitalists) and
the ones who have only labor to offer.
 The ultimate objective of the capitalists is to increase the
productivity by paying possible minimum wages to the
workers due to which the latter feels exploited.

12. SUGGESTIONS TO IMPROVE
INDUSTRIAL RELATIONS
 S o u n d personnel policies
 Participative management
 Responsible unions
 Employee welfare
 Grievance procedure
 Constructive attitude

13. CASE STUDY MARUTI SUZUKI INDIA LIMITED
(MSIL)
 In July 2012, dozens of workers of the Manesar plant of
the car company Maruti Suzuki India Limited (MSIL) –
located in the State of Haryana in northern India – were
dismissed and detained without charge because they
were exercising their right to association and affiliation
to a trade union of their choice.
 Workers’ rights and trade union rights, including the
right to freedom of association, the right to collective
bargaining and the right to equal pay for equal work, are
not respected by the management of MSIL

14. WORKERS AT MSIL-MANESAR HAD CONSISTENTLY RAISED
WITH MANAGEMENT ISSUES RELATED TO WORKING
CONDITIONS AND RESPECT OF LABOUR LAW, INCLUDING:−
 The physical and psychological strain associated with
having to produce one car approximately every 45
seconds.
 The lack of adequate rest time for meals and bathroom
breaks.
 A wage structure where up to half of monthly pay is
based on productivity and other subjective factors (for
instance, taking a sick day will cost workers a quarter of
this discretionary pay).
 An average of two hours of unpaid overtime a day.

15.  On 18 July 2012, following two months of MSIL’s
refusal to bargain with the MSWU, a supervisor abused a
worker in casteist terms while raising a production-
related issue. The worker involved was immediately
suspended. The Union protested and demanded the
withdrawal of the suspension, or that both the worker
and the supervisor should be suspended. While
negotiations where taking place between the union and
the management, suddenly violence broke out at the
MSIL-Manesar facility
 Many managers, workers and police officers were badly
hurt in the violence.

16.  147 Maruti Suzuki workers have been arrested in the
wake of industrial violence at the Manesar facility on 18
July 2012. At present they remain in detention without
charges or bail; many have been subjected to beatings
and torture.
 The situation todayThe MSWU Provisional Committee
has also described a large number of police inside the
MSIL-Manesar facility. This is a concern: a highly
visible and intrusive police presence creates a climate of
fear that is not conducive to workers associating and
assembling freely

17. CONCLUSION
 Industrial relations has become one of the most delicate
and complex problems of modern industrial society.
Industrial progress is impossible without cooperation of
labors and harmonious relationships.
 Industrial relation encompasses all such factors that
influence behavior of people at work.
 Industrial Relations is also needed for achieving the
democracy by allowing worker to take part in
management, which helps to protect human rights of
individual.