ir intro notes

8/9/2019 IR Intro Notes

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Features of IR according todefinitions

• industrial relations do not emerge in vacuum. These are born out of‘employment relationship’ in an industrial setting. Without the

existence of two parties, i.e. labour and management, thisrelationship cannot exist. It is the industry which provides theenvironment for industrial relations;

• industrial relations are characterised by both conflict and co-operation. This is the basis of adverse relationship. So, the focus of

industrial relations is on the study of the attitudes, relationships,practices, and procedures developed by the contending parties toresolve or at least minimise conflicts;

• as the labour and management do not operate in isolation but arepart of large system. So the study of industrial relations alsoincludes vital environmental issues like technology of the workplace,country’s socio-economic and political environment, nation’s labourpolicy, attitude of trade union, workers and employers;



Contd…• industrial relations also involve the study of

conditions conducive to the labour, managementco-operation as well as the practices, andprocedures required to elicit the desired co-operation from both the parties; and

• industrial relations also study the laws, rules,regulations, agreements, awards of court,customs and traditions as well as the policy

framework laid down by the government foreliciting co-operation between labour andmanagement. Besides, it makes an in-



EVOLUTION OF INDUSTRIAL

RELATIONS



Primitive Stage

• Necessities of life were simple and few

• Very little specialisation in work except onthe basis of gender

• Production was just sufficient forconsumption

• Authority exercised by elderly people

• Communication face to face



Agragian Economy Stage

• Developed during the middle ages

• Brought about a change in the views onproperty.

• Employer and Employees relationship wasthat of master-servant/slave type.

• Levels of supervision were few.

• Government did not have any power tointervene.



Serfdom Stage• Developed during the Feudal Society

• Position of serfs were not better than slaves.

• Their duties and obligations were defined largelyin terms of quantities of produce they must give

to the master.

• They were of limited intellect, ignorant, depravedand were without personal ethics so were

subject to complete domination.



Handicrafts Stage• Developed because of the growth of town and

cities, increase in trade and commerce.• This system introduced an important innovationin the careers of workers

• Workers/craftsmen owned factors of production.

• They sold their products directly to customers• Some type of specialisation of work was found• Some young men start their careers as

apprentices and were bound to work for mastercraftsmen for specified time during which theycould learn.



Contd…

• Got no wages except lodging and

boarding facilities.

• Only one or two levels of supervision were

involved.• Master craftsmen held highest status

• Concept of crafts guilds.



Cottage or Putting out Stage

• Due to development of economic system,

and that of the steam and power, someindividuals became employees in newindustrial units

• Traveling traders or Trading Capitalistundertook to buy raw-materials and supply

these as well as finances to the craftsmen• System of cottage and putting out



Factory or the Industrial Capitalism

• In this economies in production could only

be achieved from newly perfectedmachines

• Cottage workers became factory hands• Large number of peoples worked under

the same roof and this made it possible to

supervise them more closely.



Contd….• With factory system human labour replaced by

machines.• System of industrial revolution emerged.

• Under it women and child labour were employed

for a long period of time

• Machinery simplified production operations

• Reduce skill requirements

• Deteriorate living and working conditions,housing accommodation became adequate



Contd…

• Increased specialization strict discipline

was maintained during the process ofproduction

• Workers were economically dependent onemployers.

• Employers owned all means of production

and law of demand and supply determinesthe price of labour.



Contd…

• Human element in productive process

disappeared.

• Employer produced goods with the sole

aim of selling them at profit.• Workers were involved in productive

processes solely to satisfy his dire

economic needs.



CHARATERISTICS OF INDIANLABOUR



Social Composition of Labour• Earlier the labour force in factories, mines and

plantations was generally provided by the lowestcastes, depressed classes and unfortunates insociety.

• Social mobility accounts for the emergence of

mixed workforce.• Old social barriers have broken down.

• Old distaste among the high class people formanual work is gradually vanishing.

• Development of sense of equality amongworkers and supervisory.



Gender Composition of Workers• Women workers are taken in both skilled and

semi-skilled work both at upper-middle classesand middle classes.

• Economic compulsion and desire to possess

extra good for their families• Legislations to encourage equal opportunity of

participation in work covers mainly three broad

characteristics, namely, Employment, Equalwage payment and Health and Safety.



Emergence of Tribal Labour• Tribal labour has emerged in a sizeable

proportion to industrial labour.• With the transfer of factories in tribal areas,

uprooted families wanted their young ones to be

absorbed in industries.• These tribals can now been seen working side

by side with others in the mining areas, iron and

steel industry and in unorganised industriessuch as construction etc.



Heterogeneity of Labour Class• Indian labour is sharply divided into high

class-low class, skilled-unskilled, hindu-muslim-bengali-gujrati, south Indian-northIndian etc.

• Consequently, a favourable climate couldnot be found for collective bargaining.



Contd...• Absenteeism with pay is high as compared

to without pay.• It is highest in textiles industry followed by

engineering, plantation.

• Labour Turnover includes both accessionand separation.



Labour/Employee Commitment• Commitment can be classified into 4

categories, namely, Uncommitted Worker,Partially Committed or Semi-CommittedWorker; Generally Committed Worker;

Specifically Committed Worker.



Contd…• Highly Committed employees means: person

has a strong desire to remain in a particularorganisation, a belief in and acceptance of goalsand values of organisation and a willingness toexert high level of performance to achieve the

mission of organisation.• Employee commitment focuses attention on the

extent to which an employee identifies with

organisational goals, value organisationalmembership and intends to work hard, to attainoverall organisational mission.



Contd…• Earlier employee commitment in India was high due to

the high rate of absenteeism which is due to their

permanent linkage with village.• But now the as the village nexus has ceased to operate

so it cannot be a correct indicator to measure theemployee commitment.

• Now the signs of the growth of a permanent industrialpopulation has started improving among workers fromlower castes and landless agricultural labourers.

• The conditions in industrial areas-housing conditions,

wages, conditions of work and living and welfaremeasures and other facilities should be improved so thatthe causes which compel the workers to go back tovillages are controlled and eliminated.



Migratory Character• Majority of the workers are of migratory

character in India due to their connections withtheir rural homes.

• Main causes of city-ward migration of the ruralpeople are increasing pressure of population onland, increasing number of landless agriculturallabourers forced to earn their livelihoodelsewhere, ill-treatment by high caste people of

scheduled castes and other depressed, familyquarrels and worries, indebtedness of thepeople.



Contd…• Migration of workers from rural areas to urban

areas in most cases is of a temporary nature.• Evil Effects of Migration: Different environment,

Health Problem, Dangers of Sickness and

Disease, Unhealthy Growth of Trade Unions,frequent visits leads to lack of cooperationbetween mgt. and worker, continual turnover,

problems of industrialization.



CHARACTERISTICS OF

INDIAN INDUSTRIALRELATIONS



•Employer/Management inRetrospect and Historically used

to Consider Trade Unions as aNecessary Evil of the Industrial

System



•The Trade Unions perceive

their Main Task is to Challengeand Oppose Decision of

Employer/Management



•Trade Unions are Poorly

Organised in the Country



•The Parties are Largely inDisagreement over the Scope of

Collective Bargaining andVarious issues to their

Negotiation Process



•Bargaining between Employersand Unions involves multiple

agreements



The Employers are HighlyOrgansied

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