ir in developed countries

8/9/2019 IR in Developed Countries

1/53

P R E S E N T A T I O N B Y L A KS HM I & L EE LA

Industrial relations inDeveloped Countries


2/53

Industrial relations include the whole range of relations

between workers , managers and government which

determine the conditions under which work is done in all

types of enterprise.(An organization created for businessventures)

Managers are those who have the responsibility for the

work of others in the organization

Workers are those for whose work managers are

responsible

Government directly legislate certain terms of employment

and regulate the interaction of managers and workers in

varying degrees


3/53

Industrial relations

Industrial relations commonly denotes

employee- employer relations

Industrial relations are born out ofemployment relationship in an industrial

setting

Industrial relations with people who are the

base of the industry


4/53

The field of industrial relations (also called

labour relations) looks at the relationship

between management and workers, particularly

groups of workers represented by a union.


5/53

Objectives of Industrial relations

Congenial labor management relations

Regulate the production by minimizing industrial conflict

thereby contributing to economic progress

Workers to have a say in decision making Encourage and develop trade union

Avoiding industrial conflicts

To boost the discipline and morale of workers


6/53

There are three majors players in industrialrelations

1. Management / employers

2. Labour /workers /employees

3. Government / regulator

To maintain harmonious relations between

all three major players. To contribute to economic prosperity of the

country.


7/53

IR covers some of the following Areas

Collective Bargaining : Negotiation about working conditions and terms of

employment between employer and employee to reach an agreement

Role of management, unions and government

Machinery for resolution of industrial disputes :works committee ,

Concillatory officer( settlement) ,labor courts etc.

Grievances,labor welfare and security

Trade unions,workers participation

Labour legislation : Internal social responsibility to provide some basic

amenities apart from pay, protect interest of workers, social welfare


8/53

Three actors to IR

Employee

Employer

Government


9/53

Employee

Improve their condition of employment

Views in any grievances

Exchange view and ideas with management

Share in decision making


10/53

Trade Unions

To redress the bargaining power of Individual worker.

To secure improved terms and conditions of

employment.

To secure improved status for the worker in his or her

work.


11/53

Employer

The employer see IR as

Creating and maintaining employee motivation

Obtaining commitment from workforce

Achieving high levels of efficiency

Negotiating terms and conditions of employment


12/53

Government

The govt. regulates the relationship between the

management and the labour and seeks to

protect the interest of both the groups.

The authority of the courts to settle legal

disputes.


13/53

Conditions for Good Industrial

Relations History of industrial relations (harmonious or rivalry)

Economic satisfaction of workers (basic survival need)

Enlightened and responsible labor unions

Negotiation skills and attitude of management and workers (varying

backgrounds, must possess empathy)

Legislation :Govt intervention

Social and psychological satisfaction : supportive climate along with

economic rewards


14/53

Cause of Poor Industrial Relations

Uninteresting nature of work : due to automation role of worker reduced

Political nature of unions : : inter union rivalry, multiple unions,political

parties involvement

Poor wages : Inequity in wages , complicated wage system

Occupational instability : donot want changes in the job-fear or insecurity

Effects

Resistance to change, frustration and social cost , multiplier effect (total

loss)


15/53

Suggestions to improve Industrial

Relations Both management and union should develop

constructive attitude towards each other

All basic policies and procedures relating to

IR should be clearly communicated to all

Right kind of union leadership


16/53

Approaches to IR


17/53

Systems approach

Systems framework by John Dunlop

Actors

Environmentalcontents

Ideology

input

bargaining

Conciliation

arbitration

process Rules

settlement

output


18/53

Actors: managers, workers and government agencies

Actors influenced by several forces in environment technology,

markets and power relation in society

Ideology: Though there is conflict among the actors but there is also

a shared ideology and compatibility of ideas which help to resolve

conflict by framing rules

The network or web of rules


19/53

Unitary approach

The organisation is, or should be, an integrated group of

people with a single authority/loyalty structure and a set

of common values, interests and objectives shared by all

members of the organisation.

y Management's prerogative (i.e. its right to manage and

make decisions) is regarded as legitimate, rational and

Accepted

y

Opposition to it (whether formal or informal, internal orexternal) is seen as irrational

y In short:

y the organisational system is in harmony

y conflict is unnecessary and exceptional


20/53

Pluralist approach

Based on assumption that organization is composed of individualswho make up distinct sectional groups , each with its own

interests , objectives and leadership.

Recognition of diverging interests between workers, employers

and government

Conflict is the total range of behaviour and

attitudes that express opposition and divergent orientation and it

is perceived as both rational and inevitable.

But focus is on framework of regulating work

relationships-balance of power between management and trade

unions

Conflict is necessary ,but it can be and needs to be managed and

resolved


21/53

Marxist Approach If shared ideology than why is that conflict never ceases.

Conflicts can never cease until capital accepts that labor

has right to an equal share in power.

Production system is privately owned and is motivated by

profit.

IR is the study of processes of control over work relations,

Its about who controls , how , what and why.


22/53

Trusteeship

Proposed by Mahatma Gandhi

Company accepts its total responsibility and

management role becomes that of balancing all theclaims upon the company.

Inherent responsibility to its consumers, workers,

shareholders, and the community Greater good


23/53

Let us briefly discuss about the scenarios of

Industrial relations in developed countries


24/53

Singapore


25/53

IR in Singapore

Industrial relations in Singapore reflected the

symbiotic relationship

Singapore has achieved substantial

economic and social progress since political

independence in 1965

The Singapore economy has progressed

through different stages of development, frombeing labour abundant and capital scarce to

labour scarce and capital abundant.


26/53

Its industrial structure has progressed from

labour-intensive export manufacturing to

capital and technology- intensive

manufacturing and high value addedservices.

Singapore has become an export

manufacturing base, regional headquarters of

foreign multinational corporations, a financial

centre, and a trading, transportation and

telecommunications hub.


27/53

On the economic front, Singapore has

achieved high and sustained growth to result

in a per capita income and standard of living

among the highest in Asia and the world.

Singapore has overcome its physical

constraint by adopting the region and world

as its economic hinterland, through policiesthat foster free trade and free flow of

investments.


28/53

Accelerated globalization and technological

change, together with the rapid economic

development of Southeast Asia are

pressuring the Singapore economy torestructure and reinvent itself so as to remain

competitive.

The free trade and free investment model

gave Singapore a competitive edge is beingincreasingly emulated by countries in the

region.


29/53

The vision, competence and probity of its

political leadership and bureaucracy promote

economic efficiency through exposures to

global competition;

It emphasis on human resource development

and infrastructure development to support the

private sector and maintain consistency andcoherence of its FDI policies;


30/53

Also it maintains social cohesion through its

ethnic and language policies, and ensure the

welfare of workers through policies to

promote full employment, provision of socialsafety net through the Central Provident

Fund, provision of public housing, quality

education and healthcare at affordable cost


31/53

Industrial Relations in Japan


32/53

A complicated system ofIndustrial Policies

was devised by the Japanese Government

after World War II and especially in the 1950s

and 1960s.

The goal was to promote industrial

development, and it cooperated closely forthis purpose with private firms.

The objective of industrial policy was to shift

resources to specific industries in order togain international competitive advantage for

Japan.


33/53

These policies and methods were used

primarily to increase the productivity of inputs

and to influence, directly or indirectly,

industrial investment.

Mechanisms used by the Japanese

government to affect the economy typically

relate to trade, labor markets, competition,and tax incentives.


34/53

Historically, there have been three main

elements in Japanese industrial

development.

The first was the development of a highly

competitive manufacturing sector.

The second was the deliberate restructuring

of industry toward higher value-added, highproductivity industries.


35/53

In the late 1980s, these were mainly

knowledge-intensive tertiary industries. Thethird element was aggressive domestic and

international business strategies.

After World War II, the initial industries that

policy makers and the general public feltJapan should have were iron and steel,

shipbuilding, the merchant marine, machine

industries in general, heavy electrical

equipment, and chemicals.


36/53

Later they added the automobile industry,

petrochemicals, and nuclear power and, in

the 1980s, such industries as computers and

semiconductors.

Since the late 1970s, the government has

strongly encouraged the development ofknowledge-intensive industries.

Government support for research and

development grew rapidly in the 1980s, and

large joint government-industry development

projects in computers and robotics were

started.


37/53

At the same time, government promoted the

managed decline of competitively troubled

industries, including textiles, shipbuilding, and

chemical fertilizers through such measuresas tax breaks for corporations that retrained

workers to work at other tasks.

Although industrial policy remained importantin Japan in the 1970s and 1980s, thinking

began to change.


38/53

Government seemed to intervene less and

become more respectful of price mechanisms

in guiding future development

Thus In the late 1980s, knowledge-intensive

and high-technology industries became

prominent


39/53

IR in China


40/53

China's share of the world's business has

grown exponentially because they have and

follow a national industrial policy

The Chinese government has reviewed its

investment priorities under the 4-trillion-yuan

stimulus package introduced in autumn last

year, with more emphasis given to socialwelfare projects, rural development, and

technology advancement.


41/53

China's top economic

planner, the National

Development and

Reform Commission

(NDRC), unveiled a

breakdown of the

revised stimulus

package spending

during a news

conference on March

6.


42/53

Labour law in china prompts companies to

improve their management, capital-labor

relations and productivity. A sound market economy system in return

would benefit businessesboth domestic

and foreign companies.

The law prompts companies to improve their

management, capital-labor relations and

productivity.

A sound market economy system in returnwould benefit businessesboth domestic

and foreign companies.


43/53

Although Chinas economic success so farcan be largely attributed to market-oriented

reforms, China has managed to preserve an

active role for the state in its economy.

Aside from owning and managing a vast

number of state-owned-enterprises (SOEs),

the Chinese government often employs

industrial policy to promote the developmentof specific sectors or industries.


44/53

Industrial policy in China takes a variety of

forms, including direct government subsidies,

tax incentives, special regulatory measures,

and market entry liberalization measures.

However, there is one aspect of industrial

policy as exercised in China that does create

tensions with the fundamental purpose ofcompetition policy.


45/53

In many of its industrial policy plans China

has emphasized the governments intention

to promote mergers and acquisitions that will

lead to concentration of market power in a

few extra-large companies, or nationalchampions.

To be sure, policies favoring the creation and

support of national champions are not unique

to China.


46/53

Chinese system prizes centralized power and

centralized control, and in China anything big

tends to elicit pride, not fears.

This bias in favor of bigness partly explains

the bigger-is-better mentality manifest in

many ofChinas industrial policy plans. It is true that China has enacted its antitrust

law in the same style as the antitrust law of

the United States, but it remains to be

different from US in all Aspects


47/53

IR In United States of America


48/53

United States labor law is a heterogeneous

collection of state and federal laws.

Federal law is the body of law created by the

federal government of a country.

A federal government is formed when a

group of political units, such as states orprovinces join together in a federation,

surrendering their individual sovereignty and

many powers to the central government while

retaining or reserving other limited powers.


49/53

As a result, two or more levels of government

exist within an established geographic

territory.

Federal law not only sets the standards that

govern workers' rights to organize in the

private sector, but overrides most state andlocal laws that attempt to regulate this area.

There is a three-tier structure of industrial

relations in the United States.


50/53

Local unions deal with the daily interaction

with employers at the workplace level.

Typically, these local unions are affiliated with

a national union such as the Service

Employees International Union, which, as of

2005, is the largest national union in theUnited States.

Labor federations, like the AFL-CIO, serve as

umbrella organizations for national unions

and provide overall direction for the labormovement, as well as services like training

and government lobbying.


51/53

However, the lack of advancement of

organized labor in recent years has caused

some national unions to leave the AFL-CIOand attempt to form a competing labor

federation.

USA applies many policies with an industry-specific impact.

But these policies do not differ significantly

from those in other countries and the process

in which US industrial policies emergeseverely limits their consistency.


52/53

What differentiates the USA is a

microeconomic business environment that

enables a high degree of regional

specialization, benefits especially knowledge-driven industries, and raises the impact of

innovation and entrepreneurship policies.


53/53

Thank You

ir in developed countries

Documents