industrial_relations-1 (1)

8/7/2019 Industrial_Relations-1 (1)

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MEANING OF INDUSTRIALMEANING OF INDUSTRIAL

RELATIONSRELATIONS

The field of Industrial RelationsThe field of Industrial Relations(also called labour relations) looks(also called labour relations) looks

at the relationship betweenat the relationship betweenManagementManagementandand WorkersWorkers,,

particularly groups of workersparticularly groups of workersrepresented by arepresented by a UnionUnion

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Factors in analysing I.RFactors in analysing I.R

1.1. Levels of labour relationsLevels of labour relationsa. Shop floor levela. Shop floor level

b. Regional levelb. Regional levelc. National levelc. National level

2.2. Ability to adapt to changeAbility to adapt to change

3.3. Legislation and regulationLegislation and regulation22


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Perspective Theories ofPerspective Theories of

Industrial RelationsIndustrial Relations1.1. Unitary PerspectiveUnitary Perspective

2.2. Pluralistic PerspectivePluralistic Perspective

3.3. MarxistP

erspectiveMarxistP

erspective

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Unitary PerspectiveUnitary Perspective

1. The organization is perceived as an integral and1. The organization is perceived as an integral andharmonious whole with the idea of one happyharmonious whole with the idea of one happy

family.family.2. Management and other members of the staff2. Management and other members of the staffshare a common purpose emphasizing mutualshare a common purpose emphasizing mutualcooperation.cooperation.

3. It demands loyalty of all employees.3. It demands loyalty of all employees.4. Trade Unions are considered as unnecessary4. Trade Unions are considered as unnecessary5.Conflict is perceived as disruptive and the result5.Conflict is perceived as disruptive and the result

of agitators, interpersonal friction andof agitators, interpersonal friction andcommunication breakdown.communication breakdown.

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Pluralistic PerspectivePluralistic Perspective

Organization is perceived as being made up of powerful andOrganization is perceived as being made up of powerful anddivergent subdivergent sub--groupsgroups

Each subEach sub--group has its own legitimate loyaltiesgroup has its own legitimate loyalties Each subEach sub--group has its own objectives and leadersgroup has its own objectives and leaders The two prominent subThe two prominent sub--groups are Management and Tradegroups are Management and Trade

Unions.Unions. The role of Management leans less towards enforcing or controllingThe role of Management leans less towards enforcing or controlling

and more towards persuasion and coand more towards persuasion and co--ordinationordination Trade Unions are considered as legitimate representatives ofTrade Unions are considered as legitimate representatives of

employeesemployees

Conflict is dealt by collective bargainingConflict is dealt by collective bargaining Collective bargaining is not considered a bad thing. If managedCollective bargaining is not considered a bad thing. If managed

properly, it can result in positive change.properly, it can result in positive change.55


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MarxistPerspectiveMarxistPerspective

There is a fundamental division of interest betweenThere is a fundamental division of interest betweencapital and labourcapital and labour

This perspective sees inequalities of power andThis perspective sees inequalities of power and

economic wealth as the root of capitalist economiceconomic wealth as the root of capitalist economicsystemsystem Conflict is seen as inevitable and trade unions are aConflict is seen as inevitable and trade unions are a

natural response of workers to their exploitation bynatural response of workers to their exploitation bycapitalistcapitalist

The Marxist view is that joint management andThe Marxist view is that joint management andregulation would enhance management positionregulation would enhance management position66


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Conflict Between IR and HRMConflict Between IR and HRM

Key Differences between HRM and IRKey Differences between HRM and IR

1.1. IRIR is collectivist and pluralist in outlook, dealing with relationsis collectivist and pluralist in outlook, dealing with relationsbetween employers and Unions and between them and the state.between employers and Unions and between them and the state.The outcomes are standardized rules and procedures. Some ofThe outcomes are standardized rules and procedures. Some ofthe central features of IR are freedom of association, collectivethe central features of IR are freedom of association, collectivebargaining, right to strike & lockout and resolution of conflictbargaining, right to strike & lockout and resolution of conflictthrough trade unionsthrough trade unions

HRMHRM does not encompass the third party (The state). It isdoes not encompass the third party (The state). It is

bipartite but individual focussed. This is evident from the keybipartite but individual focussed. This is evident from the keyHRM subjects such as recruitment and selection, appraisal,HRM subjects such as recruitment and selection, appraisal,training and development, motivation and retention of stafftraining and development, motivation and retention of staffthrough rewards.through rewards.

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Key differences between HRM and IRKey differences between HRM and IR

3.3. IRIR is focussed on resolving conflicts between two partiesis focussed on resolving conflicts between two parties

or between one of them and the state, throughor between one of them and the state, throughnegotiations and collective bargaining.negotiations and collective bargaining.

HRMHRM is designed to maximize employee commitment andis designed to maximize employee commitment andquality of work. HRM believes in Managing people forquality of work. HRM believes in Managing people for

common interest of the organization. HRM focuses oncommon interest of the organization. HRM focuses ongood management rather than external rules andgood management rather than external rules andcollective bargaining.collective bargaining.

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4.4. HRMHRM believes in individual employee relationshipbelieves in individual employee relationshipIRIR involves Unions rather than individuals directly.involves Unions rather than individuals directly.

5. In5. In IRIR the pay is based on cost of living and collective bargainingthe pay is based on cost of living and collective bargainingHRMHRM seeks to introduce a performance element into pay.seeks to introduce a performance element into pay.

6.6. IRIR is considered as a specialists function and does not involve line managersis considered as a specialists function and does not involve line managersHRMHRM also involves line managers in HRM role.also involves line managers in HRM role.

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7.7. IRIR focuses on loyalty and allegiance towards trade unionsfocuses on loyalty and allegiance towards trade unions

HRMHRM focuses on commitment to the goals and values of thefocuses on commitment to the goals and values of theorganizationorganization

8. Emergence of new categories of employees has increased the8. Emergence of new categories of employees has increased thedistinction between IR and HRM.distinction between IR and HRM. IRIR deals with all parties as adeals with all parties as acollective body whereascollective body whereas HRMHRM deals with different categories ofdeals with different categories ofworkers in accordance with their knowledge and capabilityworkers in accordance with their knowledge and capability

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Summary of incompatibilitySummary of incompatibility

between IR and HRMbetween IR and HRM IRIR considers the mass:considers the mass: HRMHRM considers the individualconsiders the individual InIn IRIR, pay is determined by bargaining:, pay is determined by bargaining: HRMHRM introducesintroduces

the performance factor in determining the paythe performance factor in determining the pay

IRIR seeks to resolve conflicts through negotiations orseeks to resolve conflicts through negotiations orthrough legislation:through legislation: HRMHRM seeks to match organizationalseeks to match organizationalgoals with employees individual goalsgoals with employees individual goals

InIn IRIR, communication with employees is through Unions:, communication with employees is through Unions:

InIn HRMHRM it is not necessarily soit is not necessarily so

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IRIR has traditionally promoted standardizationhas traditionally promoted standardization(rules & regulations):(rules & regulations): HRMHRM is more concernedis more concernedwith flexibilitywith flexibility

Training, development and motivation areTraining, development and motivation arecentral issues ofcentral issues ofHRMHRM: Conflict resolution and: Conflict resolution andcollective bargaining are the central issues ofcollective bargaining are the central issues ofIRIR

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Harmonizing HR and IRHarmonizing HR and IR

Preconditions to harmonize HR and IRPreconditions to harmonize HR and IR Change in attitude of Management and workersChange in attitude of Management and workers Acknowledgement of the fact that there is a linkAcknowledgement of the fact that there is a link

between growth of the enterprise and growth of thebetween growth of the enterprise and growth of theemployeesemployees Recognition that employer and employee interests areRecognition that employer and employee interests are

not only divergent but also common e.g. productivity isnot only divergent but also common e.g. productivity isan important issue to bothan important issue to both

Both HRM and IR should be prepared to accommodateBoth HRM and IR should be prepared to accommodateeach other. At present, IR views HRM as its rivaleach other. At present, IR views HRM as its rival

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