Industrial Relation 3e2k4f

Approaches to Industrial RelationS Presented by: Group 1 • Amber Kumar • Khushboo saxena • Manvendra Singh • Prerna Khanudi • Sukriti Harit

TOPICS INCLUDED: • Introduction to IR: – Meaning – Scope – Objectives Approaches to IR

• Dunlop’s framework • Theoretical perspective: Unitary, Pluralist, Radical and trusteeship • Rule Making and IR • Basic Concepts and values • Partnership Model of Sound IR • Obligations of the management and union • Industrial relations scenario in india

MEANING OF IR Relationship between: 1. MANAGEMENT

WORKERS, PARTICULARLY UNIONS

2.

EMPLOYERS

EMPLOYEES

Relationship between: 3. EMPLOYERS

MEDIATORY INSTITUTIONS

EMPLOYEES

GOVERNMENT

t

…contd  The framework of this relationship is set by government though legislations and regulations.  Aspects covered employment relationship human resource management labor relations

SCOPE OF IR • The scope or industrial relations is quite vast. The main issues involved here include the following:  Collective bargaining  Machinery for settlement of industrial disputes  Standing orders  Workers participation in management  Unfair labor practices

OBJECTIVES OF IR to facilitate production and productivity;  to safeguard the rights and interests to achieve a sound, harmonious, and mutually beneficial labour management relations  to avoid unhealthy atmosphere in the

FOUR APPROACHES TO INDUSTRIAL RELATIONS My boat Attitude Shared boat Attitude Our boat Attitude

Your boat Attitude

Get off, if you don’t like it! We sail together. Do not rock the boat. It is our own common enterprise. Let us combine our efforts to better it. With a sense of ownership and pride, the purpose is to let employees whole heartedly contribute to the cause of enterprise.

DUNLOP ‘S FRAMEWORK OF INDUSTRIAL RELATION SYSTEM Inputs Actors Contexts: Env. contents

Processes

Output

Bargaining, Lawmaking etc

Ideology Feed Back

Rules

FOUR ELEMENTS • ACTORS: – Managers and their representatives – Workers and their representatives – Specialized government agencies concerned with workers, enterprises and their relatioinship

• CONTEXTS – Technological characteristics of the workplace and work community – The product and factor markets and budgetary constraints that impinge on actors – Locus and distribution of power in larger society

FOUR ELEMENTS (..contd) • IDEOLOGY: A body of common ideas that defines the role and place and the ideas that each actor holds towards the place and the function of the others in the system • – Regulation and policies of the management hierarchy – Regulations, decisions, awards or orders of govt. agencies – Collective bargaining agreements

THEORETICAL PERSPECTIVE Unitary Pluralist Radical Trusteeship

Unitary

• "one happy family" • Emphasis on mutual cooperation, for common purpose • Paternalistic approach • Trade union are undesirable,

Pluralist  Comprises of powerful and divergent sub-groups  the two predominant sub-groups are the “management and trade unions”.  legitimate loyalties and with their own set of objectives and leaders  The focus is on the solution of conflict rather than its generation.  Uses formal system of collective bargaining as a method of conflict resolution.  Two aspects of relationship between labor and management a)market relationship b)management’s dealing with labor

Radical  Historical development of the power relationship between capital and labor.  Characterized by the struggle of labor and capital to acquire influencing position on each other.  Capitalist ownership aims to maximize their profit.  Conflicts are inevitable according to this approach.  Trade unions are required to represent the labor.

Trusteeship

 It was proposed by Mahatma Gandhi.  the theory of trusteeship is based on the view that all forms of property and human accomplishments are gifts of nature.  It aimed at achieving economic equality.  There should be perfect understanding between capital and labor, mutual respect, recognition of equality.  Conditions put by Mahatma for strikes. a)the cause of the strike must be just. b) there should be no violence

RULE-MAKING AND IR IN 1958 DUNLOP referred to the network of rules as one of the out puts of industrial relations. which is originated from different source like legal, political, economic, social and historical context: Constitution and legislative framework. Single party; unilateral

Cont……….  Two parties; collective bargaining THIRD PARTY:- Third party rule settings create unhappiness.  MULTIPLE PARTY :- Social code, has to follow the standards set .

BASIC CONCEPT AND VALUES  Equity and Fairness: Equity: “Equal Treatment to One and All under Comparable Circumstances”  Fairness: “utilization when One goes by What the Majority Accepts”

 Power and Authority:Power is the ability to influence ,impose , or control. Authority is the right to expect and command obedience

Cont……….  Individualism and Collectivism: Individualism and collectivism are conflicting views of the nature of humans, society and the relationship between them.

 Integrity, Trust and Transparency: Integrity is adhering to what is professes.  Trust is established between and among people.  Transparency is promoted through sharing of information, openness in communication etc..

PARTNERSHIP MODEL OF SOUND IR  Management at the enterprise level create an atmosphere, conducive to partnership between the labor and management. The basic ingredients of a partnership model for cooperation are.. • Sharing information • Consulting with each other on a regular basis • Brainstorming together • Bridging the gap between precept and practice

Cont…… • An Understanding between managers and top officials of the union is not enough for cooperation between labor and management but it also requires bridging the gap between policymaking, implementation, idea and action.

OBLIGATIONS OF THE MANAGEMENT AND THE UNION  Obligation of management: Clarify and reason with the other party  Provide for say and share for all employees  Focus on fairness  Empower people  Be transparent because trust begets trust  Learn to manage the ego

Cont……..  Obligation of the union: Develop a long-term perspective  Understand the link between the macro and micro relationship in assessing the behavior and performance of a firm  Understand and assess the consequences of working together verses working at cross-purposes

INDUSTRIAL RELATIONS SCENARIO IN INDIA The Second National Commission on Labor 2002 Has made the following observations  It is increasingly noticed that trade unions not normally give a call for strike because they are afraid that a strike may lead to the closure of the unit.  Service sector workers feel they have become outsiders and are becoming increasingly disinterested in trade union activities.  the nature of disputes for demands is changing.  'The labor adjudication machinery is

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