Industrial relation

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Industrial relation


Industrial Relations is a social concept because it deals with social relationships in different walks of life. It is also a relative concept because it grows and flourished or stagnate and decays in accordance with the economic, and political conditions prevailing in society and the laws made by the state to regulate them. The state of industrial relations is also influenced by the advances made in the field of science and technology. There is a greater divergence in industrial relations systems as a result of the divergent social, economic, political, and cultural environments.

According to Dale Yoder, “Industrial relation is a relationship between management and employees or among employees and their organizations, that characterize and grow out of employment.”

According to R.A. Lester, “Industrial relations involve attempts to have workable solutions between conflicting objectives and values, between incentive and economic security, between discipline ad industrial democracy, between  authority and freedom and between bargaining and co-operation.”

According to the ILO, Industrial relations deal with either the relationships between the state and the employers and worker’s organization or the relation between the occupational organizations themselves.

Industrial Relations Characteristics:

  • Industrial relations are the result of an employment relationship in an industrial company.
  • Industrial interactions foster the development of skills and strategies for adapting to and collaborating with one another.
  • In order to preserve harmonious interactions, the industrial relations system develops complicated norms and regulations.
  • The government intervenes to influence industrial relations through laws, rules, agreements, and rewards, among other things.
  • The following are key industrial relations factors: employees and their organisations, employers and their associations, and the government.

Industrial Relations Objectives 

  1. To promote and develop congenial labor-management relations;
  2. To improve the economic status of the worker by improving wages, benefits, and by assisting the worker in an evolving sound budget;
  3. To regulate production by minimizing industrial conflicts through state control;
  4. To socialize industries by making the government an employer;
  5. To give workers a voice in management and decision-making;
  6. To build workers’ strength in order to solve problems through mutual negotiations and consultation with management;
  7. To encourage and develop trade unions in order to build workers’ strength;
  8. To avoid industrial conflict and its consequences; and
  9. To extend workers’ rights.

The Importance of Industrial Relations:

  1. Harmonious industrial relations avoid strikes and lockouts, which increase output by maximizing the use of machinery and resources.
  2. An industrial employee who is pleased with the industrial relation atmosphere may strive to do a better job, increasing his output.
  3. Employee discipline management will be smooth in an organization with a healthy industrial environment.
  4. Management may elicit genuine employee cooperation in boosting productivity and introducing new work techniques and modernization.
  5. Harmonious industrial relation increases earnings for the organization and increases profit sharing for employees.
  6. Effective industrial relations promotes the spirit of collective bargaining and the creation of industrial democracy.
  7. Organizational expansion and diversification plans may mainly be carried out, and personnel can benefit from them by having possibilities for professional advancement.
  8. Good industrial relation helps management to adopt cost-cutting measures and overall product or service quality, in addition to proper-should to survive and develop in today’s competitive environment.


Detailed Content Covered in Study Material

Meaning, Definition, Characteristics, Objectives, Importance, Approaches, Indicators,

International Labour Organisation –

Meaning, Objectives, Structure, Functions of Activities, Industrial Relations Machinery in India, Industrial Disputes, Arbitration,

Tarde Union –

Features of Trade Union, Objectives, Types, and structure of Trade Union, Advantage & Disadvantage of Trade Union, Problems of Trade Union,

Collective Bargaining –

Nature, Features, Objectives, Scope of Collective Bargaining, Process of Collective Bargaining,

Grievance –

Meaning and Definition, Characteristics, Forms of Grievance, Causes and sources of Grievance, Grievance Procedure, Need for a Grievance Procedure, Essential prerequisite of a Grievance Procedure, Steps in Grievance Procedure, Model of Grievance Procedure

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