industrial relations importance
The concept of industrial relations has assumed more significance nowadays than in the past. Dictionary meaning of industrial relations is the relations between management and employees in industrial concerns. The increase in industrial labour led to the formation and development of trade unions and various social groups. In this way, IR helps create a peaceful environment in the organisation. Armstrong has defined IR as “IR is concerned with the systems and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers and to regulate the ways in which employers treat the employees”. There is uninterrupted flow of income for all. Satisfied workers are less inclined towards entering into conflict with the management on issues like low wages, long work hours, and unhealthy work environment. Industrial relations is the relation between management and employees. Abstract. Encyclopedia Britannica defined IR more elaborately as “The concept of industrial relation has been extended to denote the relations of the State with employers, workers and other organizations. Copyright 10. From the analysis of Dale Yoder’s opinion it is revealed that, the employees work in industry as per terms and conditions of employment and in the process of working in collaborative system both, management and employees develop relations with each other and this relationship as a whole is industrial relations. It may affect their careers. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption. The importance of industrial relations can be studied under the following heads:-. Good industrial relation helps in reducing the industrial disputes. Thus, the relationship starting with cooperation soon changes into conflict and after its resolution again changes into cooperation. Sound and Harmonious Industrial Relationis essential for the smooth running of an organization. On the other hand, lack of discipline means waste, accidents, and confusion. The main object of industrial relation is a complete mental revolution of workers and employees. When the entire world is striving for material well-being and when the nations of the world are moving in a planned way for industrial development; industrial relations are naturally drawing more and more attention. Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade unions, employer organizations and the state. IR can now safely be defined as a coin having two faces- cooperation and conflict. These dynamics require more different IR strategy than the conventional one. It is mainly the joint consultations, that pave the way for industrial democracy and cement relationship between workers and management. Good IR helps to run an industry effectively and successfully. The next importance of employee relations in an organization is the aspect that it boosts loyalty among employees to a great extent. Peace in industry is a powerful factor for good international relations. John T Dunlop (1958) has expressed his views on the concept of industrial relations as the relations between three actors-employer, employees and government. Unions gain more strength and vitality. with the growth and spread of industry. Content Guidelines 2. The relationship may be positive, negative or mixed. This means, continuous employment for all from manager to workers. Experiences indicate that good industrial relations serve as the key for increased productivity in industrial organisations. Terms of Service 7. Copyright 10. vii. They all work for the common good. The significance of a healthy Industrial Relations may range from continuous production, reduction in industrial disputes, high morale, a mental revolution and reduced wastage of time and other resources. They also clog the progress the nation. Industrial relations hold a high significance in the context of human resource management about addressing the industrial disputes in an organization. Complete harmony between labour and capital may be a dream but quite a considerable amount of unrest and discontent among workers can be removed through efficient handling of industrial relations. 1.Define Industrial Relations. The subject, therefore, includes individual relations and joint consultation between employers and workers at their places of work, collective relations between employers and trade unions; and the part played by the State in regulating these relations”. This benefits the both. Every worker feels that he is a co-owner of the gains of industry. Much of the success or failure of Indian Five Year Plans would be dependent on the maintenance of harmonious employee-employer relations. It results in industrial peace which is essential for the countries, particularly for India, where the economy is being geared in a planned way to ameliorate the lot of the masses. It helps in achieving the targets, goals, and objectives of the organization. Public Participation. Hence it is broader in meaning and wider in scope. All these necessitate the maintenance of harmonious industrial relations so as to maintain higher productivity to fulfill the goals of the Five Year Plans in India. Improved employee morale, industrial peace, recognition of employee’s interest and reconciliation of employer’s and employee objectives and interest increased production with minimum wastage of resources. Industrial relations have moral dimensions too. Managers expect workers to observe codes of discipline, not to join illegal strikes, not to indulge in damage to company’s property, not to assault supervisors or peers, and not to come inebriated to the workplace. INDUSTRIAL RELATION . An increase in the morale of workers reduces per unit cost of production too. Importance of Industrial Relations for Employees and Employers: Industrial relations usually imply good and positive relations between employees and employers. Hence, one of the major objectives of industrial relations is to change the traditional and contradictory views of labour and management towards each other, so that they may develop mutual understanding and cooperation and both may work in the best interests of enterprise. We find union of bank officers, pilots, engineers and so on. Industrial relations are the relationships between employees and employers and Industrial progress is impossible without harmonious relationships between employers and employees. Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of … Plagiarism Prevention 4. Good industrial relations bring industrial peace, which is turn tends to increase production. The concept of union is no longer confined to the relationship between shop floor level worker and management due to increasing unionization of other classes of employees. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected. The essences of good industrial relation lies in the bringing up of good labor relations which gives a forum to understand each other (employer, employee) properly. So, there is the impact of industrial relations not only on the economy of a country but also on its society and culture. Reduced industrial dispute, industrial unrest, strike, lock outs can be avoided through good industrial relation. They affect production and national income in an adverse manner. 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